and a

DIFFERENCE

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

INDIAN GAAP IFRS

• LAW OVERRIDES • USAGE BY

STANDARDS INVESTOR IS KEPT
IN MIND
 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
5 Extra Required to be separately
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
No provision
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
 INDIAN GAAP IFRS
7 Depreciation As per Schedule XVI of IAS-16 allows
the Companies Act, management to charge
1956. 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
method or completed have been transferred to
service method. the 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 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 assets Fair Value. the 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
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 method. share-based payment
employ Hence, choice is available to employees is to be
ee taken into account,
benefits 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.