Ifrs Indian Gaap

8/9/2019 Ifrs Indian Gaap

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and a

IFRS

IFRS INDIAN GAAP


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INDIAN GAAPIFRS

1.CONCEPTUAL

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2.LAW AND STANDARDS

LAW OVERRIDES

STANDARDS

USAGE BY INVESTOR IS

KEPT IN MIND

IFRSINDIAN GAAP

IFRS


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IFRS

INDIAN GAAP IFRS

True and Fairpresentation of

financials.

Emphasis is onfairly presented

statements.

3. Fairly Presented Statements

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IFRSINDIAN GAAP

4. Presentation

Defines format of balancesheet and its related

statements

For listed companies,

Insurance companies,Banks, SEBI, IRDA and

other regulatory authorities

guide as to how financials

are to be projected.

IAS-1 providesguidelines and overall

requirements and

Presentation of financial

statement

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IFRS

IFRSINDIAN GAAP

5 Extra

ordinary

items

Required to be separately

disclosed in Indian GAAP.

No provision

6 Reports Generally in India, as per

schedule IV of the

companies Act, 1956,

In a few cases, cash flow

statement is required to

be presented (AS-3),

IAS-1 require a

business entity to

report the financial in

the following five

statements:

yBalance sheet

yIncome Statement

yCash Flow Statement

yStatement of change

in EquityyNotes to accounts

yCash Flow

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IFRSINDIAN GAAP

7 Depreciat

ion

As per Schedule XVI of

the Companies Act, 1956.

IAS-16 allows

management to

charge depreciation

8 Revenue

recognitio

n

AS-9 Revenue

Recognition provides an

option to use either

proportionate completionmethod or completed

service method.

IAS 18-Provides that

revenue can be

recognized when risks

rewards and controlshave been transferred

to the buyer.

In construction

contracts, stage of

completion methodcan be applied to

recognize revenue, if

reliable valuation is

possible.

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IFRSINDIAN GAAP

9 First time

adoption

No such standard is

available

standard is available

10 Valuation

of taken

over

assets

Taken over assets to be

valued at cost and not on

Fair Value.

IFRS 3 Business

Combinations allows

the Assets require

Goodwill to be tested

for impairment at eachbalance sheet date.

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11 Goodwill Does not require goodwillto be tested for

impairment at each

balance sheet date.

Goodwill to be testedfor impairment at

each balance sheet

date.

12 Reversal Permitted subject tocertain conditions.

Once impairment lossis recognized on

goodwill, reversal

is not permitted.

13 Share-

based

emplo

yee

benefit

s

Allows Fair Value method,

or intrinsic value

method. Hence, choice

is available

IAS 19 provides that a

share-based

payment to

employees is to be

taken into account,

using Fair Value

method.

IFRSINDIAN GAAP

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14 Treasury share

transactions

No such guidance

is available

Provides detailed

guidelines

15 Hyper

inflationary

economies

No such standard

in

India

There is a standard

16 Related partydisclosures Related partieshave been

specifically

defined in the

standard.

IAS 24 RelatedParty Disclosures

defines related

party in terms of

control or

significant

influence, butseveral types of

exemption are

granted,

particularly for

relationships withina group.

IFRSINDIAN GAAP

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Questions?


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2.LAW VS STANDARDS


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Documents

Ifrs Indian Gaap