Industrial & Management Engineering

Indian Institute of Technology, Kanpur

Assignment 13
MBA601A

Accounting and Finance

Group – 7
Submitted by:
Nikhil Dubey 22125059

Group Members:

Harsh 22125038

Rahul Balachandran 22125070

Harshit Jain 22125041

Accounting Standards: Ind AS, IFRS and GAAP

• Standards significantly different from each other

1. After study of the three accounting standards, it can be observed that GAAP as a
standard differs from Ind AS and IFRS. GAAP is rules based standard and IFRS is
principles based standard. Ind AS has been developed in line with IFRS and they are
very similar.
2. Earnings per Share: Under AS-20 in GAAP, IAS-33 in IFRS and Ind AS-33 in Ind AS.
▪ For disclosure in separate financial statements, in AS-20, disclosure of basic
and diluted EPS information both in separate and consolidated financial
statements is required.
▪ IAS-33 mandates of disclosure of EPS only in consolidated financial
statements and allow disclosing in separate financial statement voluntarily.
▪ In Ind AS-22 it is required to disclose EPS information in both consolidated as
well as separate financial statements.
3. Leases: Under AS-19 in GAAP, IAS-17 in IFRS and Ind AS-17 in Ind AS.
▪ For leasehold land, AS-19 classifies it as fixed asset.
▪ In IAS-17, it is classified separately as operating lease or finance lease, while
the property interest in operating lease is classified as investment property.
▪ In Ind AS-17, it also classifies leasehold land as operating lease or finance
lease like IFRS, however it does not consider interest in operating lease as
investment property.

• Standards missing in each one of the standards

1. Reporting in hyper-inflationary economies: The standard does not exist in GAAP
standard but exist on other two standards IFRS-29 & IndAS-29. IFRS-29 and Ind AS-
29 are similar, but in IndAS-29, an additional disclosure about disclosure of existing
hyperinflationary situation in economy is needed.
2. Investment Property & Agriculture: The standard does not exist in GAAP but is there
on IFRS-40 & 41 and Ind AS-40 & 41 respectively.
3. Share Based Payment: The standard does not exist in GAAP but is there in IFRS-102
and Ind AS-102.
4. IFRS and Ind AS covers all the standards covered in GAAP.

References
1. Kovvali Prakash, 2018, “IFRS vis-à-vis IndAS and AS (GAAP) – The Convergence or
Adoption”, Institutional Excellence for Economic Growth, Utkal University,
Bhubaneshwar.
2. https://www2.deloitte.com/content/dam/Deloitte/in/Documents/audit/in-audit-indian-
gaap-ifrs-and-indas-a-comparison-noexp.pdf