The Core GAAP Principles

GAAP is set forth in 10 primary principles, as follows:

1. Principle of consistency: This principle ensures that consistent

standards are followed in financial reporting from period to period.
2. Principle of permanent methods: Closely related to the previous
principle is that of consistent procedures and practices being
applied in accounting and financial reporting to allow comparison.
3. Principle of non-compensation: This principle states that all
aspects of an organization’s performance, whether positive or
negative, are to be reported. In other words, it should not
compensate (offset) a debt with an asset.
4. Principle of prudence: All reporting of financial data is to be factual,
reasonable, and not speculative.
5. Principle of regularity: This principle means that all accountants
are to consistently abide by the GAAP.
6. Principle of sincerity: Accountants should perform and report with
basic honesty and accuracy.
7. Principle of good faith: Similar to the previous principle, this
principle asserts that anyone involved in financial reporting is
expected to be acting honestly and in good faith.
8. Principle of materiality: All financial reporting should clearly
disclose the organization’s genuine financial position.
9. Principle of continuity: This principle states that all asset
valuations in financial reporting are based on the assumption that
the business or other entity will continue to operate going forward.
10. Principle of periodicity: This principle refers to entities
abiding by commonly accepted financial reporting periods, such as
quarterly or annually.
Key Considerations
 Audited stand-alone financial statements as on 31 March to be considered for the calculation
of net worth.
 Net worth does not include revaluation reserves, write back of depreciation and
amalgamation reserve
 Once Ind AS is followed, it shall be followed for all subsequent years.

Numbering Mechanism of Reporting Standards – IFRS vis-à-vis Ind AS

Sr. IFRS Ind AS

IFRS Standard
No Standard Standard Standard under Ind AS
Name
. Ref. Ref.

First Time Adoption Ind AS First Time Adoption of

1 IFRS 1
of IFRS 101 Ind AS

Share-Based Ind AS
2 IFRS 2 Share-Based Payments
Payments 102

Ind AS
3 IFRS 3 Business Combination Business Combination
103

Ind AS
4 IFRS 4 Insurance Contracts Insurance Contracts
104

Non-current assets
Non-current assets held
held for sale and Ind AS
5 IFRS 5 for sale and discontinued
discontinued 105
operations
operations

Exploration for and Exploration for and

Ind AS
6 IFRS 6 Evaluation of Mineral Evaluation of Mineral
106
Resources Resources

Financial Instruments Ind AS Financial Instruments –

7 IFRS 7
– Disclosures 107 Disclosures
 Ind AS
8 IFRS 8 Operating Segments Operating Segments
108

Ind AS
9 IFRS 9 Financial Instruments Financial Instruments
109

Consolidated Ind AS Consolidated Financial

10 IFRS 10
Financial Statements 110 Statements

Ind AS
11 IFRS 11 Joint Arrangements Joint Arrangements
111

Disclosure of Interests Ind AS Disclosure of Interests in

12 IFRS 12
in other Entities 112 other Entities

Fair Value Ind AS

13 IFRS 13 Fair Value Measurement
Measurement 113

Regulatory Deferral Ind AS Regulatory Deferral

14 IFRS 14
Accounts 114 Accounts

Revenue from
Ind AS Revenue from Contracts
15 IFRS 15 Contracts with
115 with Customers
Customers

Ind AS
16 IFRS 16 Leases Leases
116

Corresponding standard not yet

17 IFRS 17 Insurance Contracts
notified in India

Presentation of Presentation of Financial

18 IAS 1 Ind AS 1
Financial Statements Statements

19 IAS 2 Inventories Ind AS 2 Inventories

 Statement of Cash
20 IAS 7 Ind AS 7 Statement of Cash Flows
Flows

Accounting Policies,
Accounting Policies,
Changes in
21 IAS 8 Ind AS 8 Changes in Accounting
Accounting Estimates
Estimates and Errors
and Errors

Events After the Ind AS Events After the

22 IAS 10
Reporting Period 10 Reporting Period

Ind AS
23 IAS 12 Income Taxes Income Taxes
12

Property, Plant and Ind AS Property, Plant and

24 IAS 16
Equipment 16 Equipment

Ind AS
25 IAS 19 Employee Benefits Employee Benefits
19

Accounting for
Accounting for
Government Grants
Ind AS Government Grants and
26 IAS 20 and Disclosure of
20 Disclosure of Government
Government
Assistance
Assistance

The Effects of Change

Ind AS The Effects of Change in
27 IAS 21 in Foreign Exchange
21 Foreign Exchange Rates
Rates

Ind AS
28 IAS 23 Borrowing Costs Borrowing Costs
23

Related Party Ind AS

29 IAS 24 Related Party Disclosures
Disclosures 24

30 IAS 26 Accounting and No corresponding guidance under Ind

Reporting by AS
Retirement Benefit
 Plans

Separate Financial Ind AS Separate Financial

31 IAS 27
Statements 27 Statements

Investments in
Ind AS Investments in Associates
32 IAS 28 Associates and Joint
28 and Joint Ventures
Ventures

Financial Reporting in Financial Reporting in

Ind AS
33 IAS 29 Hyperinflationary Hyperinflationary
29
Economies Economies

Financial Instruments: Ind AS Financial Instruments:

34 IAS 32
Presentation 32 Presentation

Ind AS
35 IAS 33 Earnings per Share Earnings per Share
33

Interim Financial Ind AS Interim Financial

36 IAS 34
Reporting 34 Reporting

Ind AS
37 IAS 36 Impairment of Assets Impairment of Assets
36

Provisions, Provisions, Contingent

Ind AS
38 IAS 37 Contingent Liabilities Liabilities and Contingent
37
and Contingent Assets Assets

Ind AS
39 IAS 38 Intangible assets Intangible assets
38

Ind AS
40 IAS 40 Investment Property Investment Property
40

Ind AS
41 IAS 41 Agriculture Agriculture
41
Interpretations (SIC and IFRS IC)

Changes in Existing Changes in Existing

Appendix
Decommissioning, Decommissioning,
1 IFRIC 1 A – Ind
Restoration and Restoration and Similar
AS 16
Similar Liabilities Liabilities

Members’ Shares in
Cooperative Entities No corresponding guidance under Ind
2 IFRIC 2
and Similar AS
Instruments

Rights to Interests
Rights to Interests arising
arising from
Appendix from Decommissioning,
Decommissioning,
3 IFRIC 5 A – Ind Restoration and
Restoration and
AS 37 Environmental
Environmental
Rehabilitation Funds
Rehabilitation Funds

Liabilities arising
Liabilities arising from
from Participating in a Appendix
Participating in a Specific
4 IFRIC 6 Specific Market – B – Ind
Market -Waste Electrical
Waste Electrical and AS 37
and Electronic Equipment
Electronic Equipment

Applying the
Restatement Approach
Appendix Applying the Restatement
under IAS 29
5 IFRIC 7 A – Ind Approach under Ind AS
Financial Reporting in
AS 29 29
Hyperinflationary
economies
 Interim Financial Appendix
Interim Financial
6 IFRIC 10 Reporting and A – Ind
Reporting and Impairment
Impairment AS 34

Appendix
Service Concession Service Concession
7 IFRIC 12 D Ind AS
Arrangements Arrangements
115

IAS 19 -The Limit on

The Limit on a Defined
a Defined Benefit Appendix
Benefit Asset, Minimum
8 IFRIC 14 Asset, Minimum B – Ind
Funding Requirements
Funding Requirements AS 19
and their Interaction
and their Interaction

Hedges of a Net Appendix Hedges of a Net

9 IFRIC 16 Investment in a C Ind AS Investment in a Foreign
Foreign Operation 109 Operation

Appendix
Distributions of Non- Distributions of Non-cash
10 IFRIC 17 A Ind AS
cash Assets to Owners Assets to Owners
105

Extinguishing
Appendix Extinguishing Financial
Financial Liabilities
11 IFRIC 19 D Ind AS Liabilities with Equity
with Equity
109 Instruments
Instruments

Stripping Costs in the Appendix Stripping Costs in the

12 IFRIC 20 Production Phase of a B – Ind Production Phase of a
Surface Mine AS 16 Surface Mine

Appendix
13 IFRIC 21 Levies C – Ind Levies
AS 37

Introduction of the No corresponding guidance under Ind

14 SIC-7
Euro AS

15 SIC-10 Government Appendix Government Assistance –

Assistance – No A – Ind No Specific Relation to
 Specific Relation to
AS 20 Operating Activities
Operating Activities

Income Taxes –
Appendix Changes in the tax status
Changes in the Tax
16 SIC-25 A – Ind of an entity or its
Status of an Entity or
AS 12 shareholders
its Shareholders

Service Concession Appendix Service Concession

17 SIC-29 Arrangements: E Ind AS Arrangements:
Disclosures 115 Disclosures

Appendix
Intangible Assets – Intangible Assets -Web
18 SIC-32 A – Ind
Web Site Costs Site Costs
AS 38

Appendix Business Combinations of

No corresponding guidance under
19 C Ind AS Entities under Common
IFRS
103 Control

 Total reporting standards issued under IFRS are 41. Total reporting standards issued under
Ind AS are 39.
 Total interpretations under IFRS (IFRS IC + SIC) are 18. Total interpretation included under
Ind AS (Appendix to relevant standards) are 17.

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