TABLE 17.

1 Differences between IFRS and Indian GAAP

Point of Difference IFRS Indian GAAP

Components of financial statements Statement of financial position Balance sheet

Statement of comprehensive Profit and loss account
income Cash flow statement
Cash flow statement Notes to accounts
Statement of change in equity
Notes to accounts

Fomat of financial position statement No specific format Format as per Schedule VI of

Companies Act. 1956

Format of income statement AS-1 specifies the format of income Format as per schedule Vi of
statement Companies Act. 1956

Cash flow statement Mandatory for all Exempted for certain entities

Extra ordinary items It prohibits the presentation of these These items are mandatory
items

Goodwill It is subject to annual impairment test To be amortized in five year's tme

Intangible assets Measured at fair value Measured at cost

Consolidated financial statements Valuation and presentation at fair Valuation and presentatian at book
value value

Change in depreciation method Prospective implementation Retrospectve implementabon

Lease of and and building Contains provisions about it Does not contain provisions about it

Inital direct cost in lease and implicit These costs are considered while These costs are not cosidered while
interest rate calculating implicit interest rate calculating implicit interest rate
Incepton and commencement of Differentiates between these twe Does not diferentiate between these
lease dates wo dates

Once complete implementation of IFRS is made mandatory, there will exist no difference betwecn
accounting standards of different countries