and a

DIFFERENCE

IFRS
IFRS 1.CONCEPTUAL INDIAN GAAP
DIFFERENCE
 2.LAW AND STANDARDS

INDIAN GAAP IFRS

• LAW OVERRIDES • USAGE BY INVESTOR IS

KEPT IN MIND
STANDARDS
 3. FAIRLY PRESENTED STATEMENTS

INDIAN GAAP IFRS

• True and Fair • Emphasis is on

presentation of fairly presented
financials. statements.

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.
 INDIAN GAAP IFRS
5 Extra Required to be separately No provision
ordinary disclosed in Indian GAAP.
items
6 Reports Generally in India, as per IAS-1 require a business
schedule IV of the companies entity to report the
Act, 1956, financial in the following
In a few cases, cash flow five statements:
statement is required to be •Balance sheet
presented (AS-3), •Income Statement
•Cash Flow Statement
•Statement of change in
Equity
•Notes to accounts
 INDIAN GAAP IFRS
7 Depreciation As per Schedule XVI of IAS-16 allows
the Companies Act, 1956. management to charge
depreciation

8 Revenue AS-9 Revenue IAS 18-Provides that

recognition Recognition provides an revenue can be
option to use either recognized when risks
proportionate completion rewards and controls have
method or completed been transferred to the
service method. buyer.
In construction contracts,
stage of completion
method can be applied to
recognize revenue, if
reliable valuation is
possible.
 INDIAN GAAP IFRS
9 First time No such standard is available Standard is available
adoption

10 Valuation Taken over assets to be IFRS 3 Business

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

12 Reversal Permitted subject to certain Once impairment loss is

conditions. recognized on
goodwill, reversal is
not permitted.

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

employe intrinsic value method. share-based payment
e Hence, choice is available to employees is to be
benefits taken into account,
using Fair Value
method.
 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 terms
standard. of control or
significant influence,
but several types of
exemption are granted,
particularly for
relationships within a
group.