All India Chain Workshop on Indian
Accounting Standards Converged with IFRS
Difference between IFRS and Indian GAAP
CA Bhupendra Mantri, Jaipur (India)
FCA, DISA(ICAI)
+919829888810
bmantri@kalanico.com
1
Differences between
• Existing Indian AS and IFRS
• Existing Indian AS and Converged Ind. AS
• Converged Ind. AS and IFRS
Classification of IFRSs
• Financial Statements Presentation
• Revenue Recognition
• Recognition, Measurement, Presentation and Disclosure of
Assets
• Recognition, Measurement, Presentation and Disclosure of
Liabilities
• Business Combination and Consolidated Financial Statements
• Financial Instruments
• Disclosure Standards
• Industry Based Standards
• Others
Financial Statements
• IAS 1: Presentation of Financial Statement
• IAS 7: Statement of Cash Flows
• IAS 8: Accounting Policies, Change in Accounting Estimates
and Errors
• IAS 10: Events after Reporting Period
• IAS 33: Earning Per Share
• IAS 34: Interim Financial Reporting
Revenue Recognition
• IAS 11: Construction Contracts
• IAS 18: Revenue
Recognition, Measurement and Disclosure of Assets
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IAS 2: Inventories
IAS 16: Property, Plant and Equipment
IAS 17: Leases
IAS 20: Accounting for Government Grants and Disclosure of
Government Assistance
IAS 23: Borrowing Costs
IAS 36: Impairment of Assets
IAS 38: Intangible Assets
IAS 40: Investment Property
IFRS 5: Non current Assets held for sale and discontinued operations
Recognition, Measurement and Disclosure of Liabilities
• IAS 12: Income Taxes
• IAS 19: Employee Benefits
• IAS 37: Provisions, Contingent Liabilities and Contingent
Assets
• IFRS 2: Share Based Payment
Business Combination and Consolidated Financial
Statements
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IFRS 3: Business Combination
IAS 27: Consolidated Financial Statements
IAS 28: Investment in Associates
IAS 31: Interest in Joint Ventures
Financial Instruments
• IAS 32: Financial Instruments – Presentation
• IAS 39: Financial Instruments – Recognition and
Measurement
• IFRS 7: Financial Instruments – Disclosure
• IFRS 9: Financial Instruments – Recognition and
Measurement
Disclosure Standards
• IAS 24: Related Party Disclosure
• IFRS 8: Operating Segments
Industry Based Standards
• IAS 26: Accounting and Reporting by Retirement Benefit
Plans
• IAS 41: Agriculture
• IFRS 4: Insurance Contracts
• IFRS 6: Exploration for and Evaluation of Mineral
Resources
Others
• IFRS 1: First Time Adoption of International Financial
Reporting Standards
• IAS 29: Financial Reporting in Hyperinflationary Economies
• IAS 21: The Effect of changes in Foreign Exchange Rates
First time adoption of IFRS (IFRS 1)
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No corresponding standard under existing IGAAP
Converged Ind. AS – 41
Amendments arising from IFRS 9 (Ind. AS 40)
Transition date choice
Elimination of effective dates prior to transition date
Deletion of certain exemption not relevant for India
Inclusion / modification of existing exemption to make it
relevant for India
• Use of different terminology
Presentation of Financial Statements (IAS 1)
Points of Differences:
• Component of Financial Statements
• Disclosure of Critical Judgment and capital disclosure
• Formats of Statement of Financial Position and Statement
of Comprehensive Income
• Extraordinary Items
• Statements of Comprehensive Income (SCI)
• Statement of Changes in Equity (SOCIE)
Statement of Cash Flow (IAS 7)
Points of Differences
• Cash and cash equivalents
• Formats and content of cash flow statement
• Cash flow associated with extraordinary items
• Disclosure of interest paid and received
• Disclosure of dividend paid
• Disclosure of dividend received
• Consolidated cash flow statement
Accounting policies, changes in accounting
estimates and errors (IAS 8)
Points of Differences:
• Change in accounting policies
• Prior Period items
• Definition of prior period items
• Change in accounting estimate
• Absence of standard or Interpretation that specifically
applies to a transition
Events after reporting period (IAS 10)
Points of Differences:
• Adjusting and non-adjusting events
• Authorization date for issue of financial statements
• Proposed dividend
Investment Property (IAS 40)
Points of Differences:
• Definition
IAS 40: Investment property is property (land or a building, or part of
a building or both) held (by the owner or by the lessee under a
finance lease) to earn rentals or for capital appreciation or both,
rather than for use in the production or supply of goods or services,
for administrative purposes, or for sale in the ordinary course of
business.
AS 13: An investment property is an investment in land or buildings
that are not intended to be occupied substantially for use by, or in the
operations of, the investing entity.
Investment Property (IAS 40)
Points of Differences
• Measurement
• Frequency / basis of revaluations
• Transfer to / from investment property
• Disposals
Inventory (IAS 2)
• Cost formulae
• Inventories acquired on deferred settlement terms
• Inventories of a service provider
Non Current Asset held for sale and discontinued operations
(IFRS 5)
• Requirement for classification, measurement and presentation of NCA HFS
and classification and presentation of discontinued operations
• Period of disposal for non-current assets held for sale
• Measurement principles
Accounting for Government Grants and Disclosure of
Government Assistance (IAS 20)
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Grants in the form of non-monetary assets - measurement
Grants in the nature of promoter’s contribution
Refundable grants – Treatment of depreciation
Government loan at below market rate
Disclosure
Leases (IAS 17)
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Initial direct costs
Incentive on operating leases received by lessess
Lease of land
Determination whether an arrangement contains lease (IFRIC
4)
Provisions, Contingent Liabilities and Contingent Assets (IAS 37)
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Applicability to financial instruments
Measurement
Present Value
Restructuring provision
Onerous contracts
Contingent assets
Share Based Payment (IFRS 2)
• Scope
• Measurement
Operating Segments (IFRS 8)
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Operating Segment
Reportable Segment
Accounting Policies / Bases of preparation
Disclosure
Restatement
MANY THANKS