and a

IFRS INDIAN GAAP

IFRS
 1.CONCEPTUAL

IFRS INDIAN GAAP

IFRS
 2.LAW AND STANDARDS

INDIAN GAAP IFRS

• LAW OVERRIDES STANDARDS • USAGE BY INVESTOR IS KEPT

IN MIND

IFRS
 3. Fairly Presented Statements

INDIAN GAAP IFRS

• True and Fair • Emphasis is on

presentation of fairly presented
financials. statements.

IFRS
IFRS
 4. Presentation

INDIAN GAAP IFRS

• Defines format of balance • IAS-1 provides

sheet and its related guidelines and overall
statements requirements and
• For listed companies, Presentation of financial
Insurance companies, statement
Banks, SEBI, IRDA and
other regulatory authorities
guide as to how financials
are to be projected.
IFRS
 INDIAN GAAP
5 Extra Required to be separately No provision
ordinary disclosed in Indian GAAP.
items
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),
IFRS
IFRS
IAS-1 require a
business entity to report
the financial in the
following five
statements:
•Balance sheet
•Income Statement
•Cash Flow Statement
•Statement of change in
Equity
•Notes to accounts
•Cash Flow statements
 INDIAN GAAP IFRS
7 DepreciatioAs per Schedule XVI of the IAS-16 allows
n Companies Act, 1956. management to charge
depreciation

8 Revenue AS-9 Revenue Recognition IAS 18-Provides that

recognition provides an option to use revenue can be
either proportionate recognized when risks
completion method or rewards and controls
completed service method. have been transferred
to the buyer.
In construction
contracts, stage of
completion method can
be applied to recognize
revenue, if reliable
valuation is possible.

IFRS
 INDIAN GAAP IFRS
9 First time No such standard is standard is available
adoption available

10 Valuation Taken over assets to be IFRS 3 Business

of taken valued at cost and not on Combinations allows
over Fair Value. the Assets require
assets Goodwill to be tested
for impairment at each
balance sheet date.

IFRS
 INDIAN GAAP IFRS
11 Goodwill Does not require goodwill toGoodwill to be tested
be tested for impairment for impairment at
at each balance sheet each balance sheet
date. date.

12 Reversal Permitted subject to certain Once impairment loss is

conditions. recognized on
goodwill, reversal is
not permitted.

13 Share- Allows Fair Value method, IAS 19 provides that a

based or intrinsic value share-based
employ method. Hence, choice payment to
ee is available employees is to be
benefits taken into account,
using Fair Value
method.
IFRS
 INDIAN GAAP IFRS
14 Treasury share No such guidance is Provides detailed
transactions available guidelines

15 Hyper inflationary No such standard in There is a standard

economies India

16 Related party Related parties have IAS 24 – Related Party

disclosures been specifically Disclosures defines
defined in the related party in
standard. terms of control or
significant influence,
but several types of
exemption are
granted, particularly
for relationships
within a group.

IFRS
Questions?
2.LAW VS STANDARDS