MALAD CPE STUDY CIRCLE
CA. KISHOR PARIKH
B.com.FCA.Dip.IFR (U.K)
M No. 09820375766
kmparikh@yahoo.co.in
LIST OF IND AS, IFRS AND AS
Ind AS
IFRS
AS
Ind AS 1 Presentation
of Financial
Statements
IAS 1 Presentation of
Financial Statements
AS 1 Disclosures of
Accounting Principles
and Policies
Ind AS 2 Inventories
IAS 2 Inventories
AS 2 Valuation of
Inventories
Ind AS 7 Statement of
Cash Flows
IAS 7 Statement of Cash
Flows
AS 3 Cash Flow
Statements
Ind AS 8 Accounting
Policies, Changes in
Accounting Estimates
and Errors
IAS 8 Accounting
AS 4 Contingencies and
Policies, Changes in
Events occurring after
Accounting Estimates and Balance Sheet Date
Errors
Ind AS 10 Events after
the Reporting Period
Ind AS 10 Appendix A
IAS 10 Events after the
Reporting Period
IFRIC 17 Distribution of
Non-cash Assets to
owners
AS 5 Net Profit or Loss for
the period, Prior Items
and Changes in
Accounting Policies
Ind AS 11 Construction
Contracts
Ind AS 11 Appendix A
(deferred)
Ind AS 11 Appendix B
(deferred)
IAS 11 Construction
Contracts
IFRIC 12 Service
Concession
Arrangements
SIC 29 Disclosure – Service
Concession Arrangements
AS 7 Construction
Contracts
Ind AS 12 Income Taxes
Ind AS 12 Appendix A
IAS 12 Income Taxes
SIC 21 Income Taxes –
Recovery of Revalued NonDepreciable Assets
SIC 25 Income Taxes –
Changes in the Tax Status
of an Enterprise or its
Shareholders
AS 22 Accounting for Taxes
on Income
IAS 16 Property, Plant and
Equipment
AS 10 Accounting for Fixed
Assets
AS 6 Depreciation
Accounting
Ind AS 12 Appendix B
Ind AS 16 Property, Plant
and Equipment
Ind AS 16 Appendix A
IFRIC 1 Changes in Existing
Decommissioning, Restoration
and Similar Liabilities
Ind AS 17 Leases
Ind AS 17 Appendix A
IAS 17 Leases
AS 19 Leases
SIC 15 Operating Leases –
Incentives
SIC 27 Evaluating the Substance of
Transaction involving the Legal
Form of a Lease
IFRIC 4 Determining Whether an
Arrangement contains a Lease
Ind AS 17 Appendix B
Ind AS 17 Appendix C
(Deferred)
Ind AS 18 Revenue
Ind AS 18 Appendix A
Ind AS 18 Appendix B
Ind AS 18 Appendix C
IAS 18 Revenue
AS 9 Revenue
Recognition
SIC 31 Revenue – Barter
Transactions Involving Advertising
IFRIC 13 Customer Loyalty
Programmes
IFRIC 18 Transfer of Assets from
Customers
Ind AS 19 Employee
Benefits
Ind AS 19 Appendix A
Ind AS 19 Employee
Benefits
Ind AS 19 Appendix A
AS 15 Employee Benefits
Ind AS 20 Accounting For
Government Grants and
Disclosure of Government
Assistance
Appendix A Government
Assistance – No Specific
Relation in Operating
Activities
Ind AS 20 Accounting For
Government Grants and
Disclosure of Government
Assistance
Appendix A Government
Assistance – No Specific
Relation in Operating
Activities
AS 12 Accounting for
Government Grants
Ind AS 21 The Effects of
Changes in Foreign
Exchange Rates
Ind AS 21 The Effects of
Changes in Foreign
Exchange Rates
AS 11 The Effects of
Changes in Foreign
Exchange Rates
Ind AS 23 Borrowing Costs
Ind AS 23 Borrowing Costs
AS 16 Borrowing Costs
Ind AS 24 Related
Party Disclosure
IAS 24 Related Party Disclosure
AS 18 Related Party
Disclosures
No Near Final Draft
IAS 26 Accounting and
Reporting by Reporting by
Retirement Benefits Plans
No standard
Ind AS 27
Consolidated and
Separated Financial
Statements
Ind AS 27 Appendix
A
IAS 27 Consolidated Separated
and Financial Statements
AS 21 Consolidated Financial
Statements
SIC 12 Consolidation – Special
Purpose Entities
Ind AS 28 Investment IAS 28 Investment in Associates
in Associates
AS 23 Accounting for
Investments in Associates in
Consolidated Financial
Statements
Ind AS 29 Financial
Reporting in
Hyperinflationary
Economies
Ind AS 29 Appendix
A
No standard
IAS 29 Financial Reporting in
Hyperinflationary Economies
IFRIC 7 Applying the
Restatement Approach under
IAS 29 Financial Reporting in
Hyperinflationary Economies
Ind AS 31 Interest in Joint
Ventures
Ind AS 31 Appendix A
IAS 31 Interest in Joint Ventures
Ind AS 32 Financial
Instruments: Presentation
Ind AS 32 Appendix B
IAS 32 Financial Instruments:
Presentation
AS 31 Financial
Instruments :
Presentation
Ind AS 33 Earning Per
Share
IAS 33 Earning Per Share
AS 20 Earnings per Share
Ind AS 34 Interim
Financial Reporting
Ind AS 34 Appendix A
IAS 34 Interim Financial
Reporting
AS 25 Interim Financial
Reporting
SIC 13 Jointly Controlled Entities
– Non-Monetary Contributions
by Venturers
AS 27 Financial
Reporting of Interests in
Joint Ventures
IFRIC 10 Interim Financial
Reporting and Impairment.
Ind AS 36 Impairment Of
Assets
IAS 36 Impairment Of Assets
AS 28 Impairment of
Assets
Ind AS 38 Intangible
Assets
Ind As 38 Appendix A
IAS 38 Intangible Assets
AS 26 Intangible Assets
SIC 32 Intangible Assets –
Website Costs
Ind AS 37 Provisions,
Contingent Liabilities
and Contingent Assets
Ind AS 37 Appendix A
Ind AS 37 Appendix B
Ind AS 39 Financial
Instruments :
Recognition and
Measurement
Ind AsS39 Appendix C
Ind AS 39 Appendix D
Ind AS 39 Appendix E
IAS 37 Provisions, Contingent
Liabilities and Contingent Assets
AS 29 Provisions, Contingent
Liabilities and Contingent
Assets
IFRIC 5 Rights to Interest Arising
from Decommissioning,
Restoration and Environmental
Rehabilitation Funds
IFRIC 6 Liabilities Arising from
Participating in a Specific Market
– Waste Electrical and Electronic
Equipment
IAS 39 Financial Instruments :
Recognition and Measurement
IFRIC 9 Reassessment of
Embedded Derivatives
IFRIC 16 Hedges of a net
Investment in Foreign Operation
IFRIC 19 Extinguishing Financial
liabilities with Equity
instruments
AS 30 Financial Instruments
: Recognition and
Measurement
Ind AS 40 Investment
Property
IAS 40 Investment Property
No standard
No near Final Draft
IAS 41 Agriculture
No standard
Ind AS 101 First Time
Adoption of Indian
Accounting Standards
IFRS 1 First Time Adoption
of International Financial
Reporting Standards
No standard
Ind AS 102 Share Based
Payment
IFRS 2 Share Based Payment
No standard
Ind AS 103 Business
Combination
IFRS 3 Business
Combination
No standard
Ind AS 39 Insurance
Contracts
IFRS 4 Insurance Contracts
No standard
Ind AS 105 Non-Current
Assets Held for Sale and
Discontinuing operations
IFRS 5 Non-Current Assets
Held for Sale and
Discontinuing operations
No standard
Ind AS 106 Exploration for
and Evaluation of Mineral
Resources
IFRS 6 Exploration for and
Evaluation of Mineral
Resources
No standard
Ind AS 107 Financial
Instruments : Disclosures
IFRS 7 Financial
Instruments : Disclosures
No standard
Ind AS 108 Operating
Segments
IFRS 8 Operating Segments
No standard
No Near Final Draft
IFRS 9 Financial
Instruments
No standard
Not covered in Ind AS
It was earlier covered in
Exposure Draft
IFRIC 2 Members’ Share in
Co-operative Entities and
Similar Instruments
No standard
Not covered in Ind AS
It was earlier covered in
Exposure Draft
Now covered in Ind AS 11
IFRIC 15 Agreements for the
Construction of Real Estate
No standard
Not covered in Ind AS
Not Relevant in India
SIC 7 Introduction of Euro
No standard
KEY DIFFERENCES BETWEEN IND AS
AND AS.
IND AS-1
Presentatio
n&
Disclosures
IND AS
Indian GAAP (AS)
•IND AS–1 prescribes minimum
structure of financial statements and
contains guidance on disclosures.
•Allows only single statement approach.
•It requires only nature wise
classification of expenses.
•It requires a Statement of Changes in
Equity to be shown as part of the
Balance Sheet.
•In AS 1 there is no separate
standard for disclosure. For
Companies, format and disclosure
requirements are set out under
Schedule VI of the Companies Act.
•Revised Schedule VI is in
accordance with requirements of
IND AS 1.
•IND AS–1 requires disclosure of •No such requirement under Indian
critical
judgments
made
by GAAP.
management in applying accounting
policies.
•AS-5
specifically
requires
•IND AS-1 prohibits any items to be disclose of certain items as Extradisclosed as extra-ordinary items.
ordinary items.
IND
AS
1,Presentation of
financial
statementsclassification
of
financial liabilities
under refinancing
arrangements.
Non-Current if the agreement to
refinance
or
reschedule
payments on a long-term basis is
completed before the end of the
reporting period.
There is no guidance under the
IGAAP. Generally, not disclosed
as payable within twelve months
after the balance sheet date if the
agreement to refinance or
reschedule payments is completed
after the balance sheet date and
before the date of approval of
financial statements.
IND
AS
1,Presentation of
financial
statementsclassification
of
financial liabilities
upon violation of
covenants.
Non-current if the lender has
agreed before the end of the
reporting period to provide a
period of grace of minimum
twelve
months
after
the
reporting period within which
the breach can be rectified and
the lender cannot demand
immediate payment
There is no guidance under the
IGAAP.
Generally, not disclosed as
payable within twelve months of
the balance sheet date if the lender
has agreed after the balance sheet
date and before the approval of
financial statements not to
demand immediate payments.
IND AS-2
Inventories
IND AS–2 prescribes same cost formula to be used
for all inventories having a similar nature and use to
the entity.
AS–2 requires that the formula used in
determining the cost of an item of inventory
needs to be selected with a view to providing
the fairest possible approximation to the cost
incurred in bringing the item to its present
location and condition. However, there is no
stipulation for use of same cost formula in
AS–2 as compared to IFRS.
There are certain additional requirement in IND AS–
2 which are not contained in AS–2 which are as
under:
No such guidance
1. IND AS 2 does not apply to inventories held by
commodity brokers-traders who measures their
inventory at fair value less cost to sells are recognized in
profit or loss in the period of change.
2.Purchase of inventory on deferred settlement terms –
excess over normal price is to be accounted as interest
over the period of financing.
3. Exchange differences are not includible in inventory
valuation.
IND AS-7
Cash Flow
Statements
IND AS 7
No exemption.
AS 3
Exemption for SME’s.
Bank overdrafts are to be treated as a component
of cash/cash equivalents under IND AS–7.
Bank Overdraft are considered as financing
activity.
IND AS–7 prohibits separate disclosure of
extraordinary items in Cash Flow Statements.
AS–3 requires disclosure of extraordinary
items.
IND AS–7 deals with cash flows of consolidated
financial statements.
AS–3 does not deal with cash flows relating
to consolidated financial statements.
IND AS-8
Prior Period
Items and
Changes in
Accounting
Policies
IND AS 8
AS 5
In case of change in accounting policy, No specific guidance given except for
IND AS–8 requires retrospective effect to
change in method of depreciation
be given by adjusting opening retained
should be considered as change in
earnings.
accounting policy and is accounted
retrospectively. The effect of
changes in accounting policies are
reflected in the current year P&L.
The definition of prior period items is AS–5 covers only incomes and
broader under IND AS–8 as compared to
expenses in the definition of prior
AS–5 since IND AS–8 covers all the
period items.
items in the financial statements
including balance sheet items.
IND AS–8 requires retrospective AS–5 requires prior period items to be
restatement of prior period figures by
included in the determination of
restatement of opening balances of
net profit or loss for the current
assets, liabilities and equity for the
period
earliest period practicable.
New accounting pronouncements that have Not required.
been issued but are not yet effective as at
the end of the reporting period are
disclosed. Known or reasonably estimable
information relevant to assessing the
possible impact of the new accounting
pronouncements
on
the
financial
statements on initial application is
disclosed.
IND AS- IND AS–10 provides that proposed
10
dividend should not be shown as liability.
Events
after the
reporting
period.
AS-4 specifically requires
such disclosure as the
same is mandated by
statutory requirement.
IND AS Revenue Recognition for real estate AS 7
11
developer included in scope of IND AS 11. No such guideline.
accounti
ng
of
real
estate
IND AS-12
Income
Taxes .
Deferred taxes are computed for
temporary differences between
the carrying amount of an asset or
liability in the statement of
financial position and its tax base
Deferred taxes are computed
for timing differences in
respect of recognition of
items of profit or loss for the
purposes
of
financial
reporting and for income
taxes.
Deferred tax asset is recognised for
carry forward unused tax losses
and unused tax credits to the
extent that it is probable that
future taxable profit will be
available against which the unused
tax losses and tax credits
can be utilised.
Deferred tax asset for unused
tax losses and unabsorbed
depreciation is recognised
only to the extent that there is
virtual certainty supported by
convincing evidence that
sufficient
future
taxable
income will be available
against which such deferred
tax assets can be realised.
Recovery of
Revalued
NonDepreciable
Assets
Measurement of deferred tax liability or
asset arising from revaluation is based on
the tax consequences from the sale of asset
rather than through use.
No specific guidance
Changes in
Tax
Status of an
Entity or its
Shareholders
Current and deferred tax consequences are No specific guidance
included in the profit or loss of the period
of change unless the consequences relate
to transactions or events recognised outside
profit or loss either in other comprehensive
income or directly in equity in the same or
a different period.
IND AS16
Property,
Plant &
Equipme
nts.
IND AS–16
accounting.
mandates
component AS–10 recommends but does not force component
accounting.
Depreciation is based on useful life.
Depreciation is based on higher of useful life or
Schedule XIV rates. In practice, more companies use
Schedule XIV rates.
Major repairs and overhaul expenditure Major repairs and overhaul expenditure are expensed.
are capitalized as if it is a separate AS–10 provides that only that expenditure which
component.
increases the future benefits from the existing asset
beyond its previously assessed standard of
Under IND AS–16, if subsequent costs performance is included in the gross book value, e.g.
are incurred for replacement of a part of an increase in capacity.
an item of fixed assets, such costs are
required to be capitalized and
simultaneously the replaced part has to
be de-capitalized.
In case of change in method of
depreciation, IND AS–16 requires effect
to be given prospectively. Change in
method of depreciation is treated as
change in accounting estimate under
IND AS–16.
AS–6 requires retrospectively recomputation of
depreciation and any excess or deficit on such
recomputation is required to be adjusted in the period
in which such change is effected. AS–6 considers this
as change in accounting policy.
Estimates of residual value needs to Estimates of residual value are not
be updated.
updated.
Revaluation
is
an
allowed No need to update revaluation regularly.
alternative treatment; however,
revaluation will have to be done
regularly.
Depreciation on revaluation portion Depreciation on revaluation portion can
cannot be recouped out of be recouped out of revaluation reserve.
revaluation reserve and will have to
be charged to the P&L account and
transfers from revaluation to
retained earnings are made directly
and not through profit or loss
Provision on site–restoration and No guidance in the standard. However,
dismantling is mandatory.
guidance note on oil and gas issued by
ICAI requires capitalization of site
restoration cost.
IND
AS-17,
Leases.
IND AS 17 – Leases
AS 19 - Leases
Determining Whether an
Arrangement Contains a Lease
(Notification deferred)
No guidance.
Service Concession Arrangements
(Notification deferred)
No guidance.
IND AS Recognised as operating lease (i.e.
17,
Prepayment)
Leases interest
in
leasehol
d land
Leasehold land is recorded and classified
as fixed assets.
IND AS 17,
Leases initial
direct costs
of lessors
for assets
under a
finance lease
For finance leases other than those
involving manufacturer or dealer
lessors, initial direct costs are
included in the measurement of the
finance lease receivable and reduce
the amount of income recognised over
the lease term.
Initial direct costs are either recognised
immediately in the statement of profit and
loss or allocated against the finance income
over the lease term.
Initial lease costs incurred by Initial lease costs incurred by manufacturer
manufacturer or dealer lessors are or dealer lessors are recognised as expense
recognised as expense when selling at the inception of the lease.
profit is recognised.
IND AS 17,
Leases initial
direct costs
of lessors
for assets
under
operating
leases
Initial direct costs incurred by lessors
are added to the carrying amount of
the leased asset and recognised as an
expense over the lease term on the
same basis as lease income.
Initial direct costs incurred by lessors are
either deferred and allocated to income
over the lease term in proportion to the
recognition of rent income, or are
recognised as an expense in the statement
of profit and loss in the period in which
they are incurred.
Lease
incentives
Lease incentives (such as rent- No specific guidance.
free period) are recognised by
both the lessor and the lessee as a
reduction of rental income and
expense, respectively, over the
lease term.
Evaluating
the Substance of
Transactions
Involving the
Legal Form of a
Lease.
If a series of transactions involves No specific guidance.
the legal form of a lease and can
only be understood with reference
to the series as a whole, then the
series is accounted for as a single
transaction.
IND AS-18,
Revenue
Recognition
IND AS 18 – Revenue
AS 9 - Revenue Recognition
IND AS–18 requires effective interest AS–9 requires interest income to be
method to be followed for interest recognized on a time proportion basis.
income recognition.
Under IND AS–18, payments received AS–9 permits recognition when the
in advance for goods yet to be goods are manufactured, identified and
manufactured or third party sales cannot ready for delivery in such cases.
be recognized as revenue until such
goods are delivered to the buyer.
Transfer of
Assets from
Customers
In the utilities industry, an entity may
receive from its customers items of
property, plant and equipment that must
be used to connect those customers to a
network and provide them with ongoing
access to a supply of commodities such as
electricity, gas or water. Alternatively, an
entity may receive cash from customers for
the acquisition or construction of such
items of property, plant and equipment.
Typically, customers are required to pay
additional amounts for the purchase of
goods or services based on usage.
No guidance
IND AS 18,
Revenue services
rendered.
Barter
transaction
s involving
advertising
services
Customer
Loyalty
Programs
Requires recognition using percentage of
completion method. Revenues from
installation
fees
and
production
commission are recognised with reference
to stages of completion, unless the
installation is incidental to sale.
Completed service contract method or
proportionate completion method permitted.
Revenues from installation fees and
production commission are recognised
when installation and production is
completed, unless the installation is
incidental to sale.
Fair value of services provided is measured
with reference to non-barter similar
transactions that occur frequently, represent
a substantial number of the transactions,
consideration involves cash or other
securities that has a reliable measure of
fair value and do not involve transaction
with the same counterparty to the barter
transaction.
No specific guidance in AS 9. However the
guidance note on Accounting for Dot-com
companies provides similar guidance for
advertising barter transactions.
Award credits are accounted for as a
No specific guidance.
separate identifiable component of a sales
transaction, with the consideration
allocated between the awards credit and the
other components of sale.
IND AS19,
Employee
Benefits.
IND AS 19 - Employee Benefits
AS 15 (Revised 2005) - Employee
Benefits
Accounting
for actuarial
gains and
losses
All actuarial gains and losses for postemployment defined benefit plans and
other-long term employment benefit
plans are recognised in OCI.
All actuarial gains and losses
for post-employment defined
benefit plans and other-long
term employment benefit
plans are recognised in Profit
and Loss Account
Under IND AS–19, the liability for termination Termination benefits are dealt with
benefits has to be recognized based on constructive under AS–29, which are required to be
obligation for e.g. Announcement of a formal plan. recognized based on legal obligation
rather than constructive obligation.
Under IND AS there is no concept of deferral.
VRS expenditure can be deferred under
Indian GAAP over 3-5 years.
The Limit on a
Defined Benefit
Asset, Minimum
Funding
Requirements
and their
Interaction.
Addresses when refunds or reductions are
regarded as available for recognition of an
asset; how funding requirements in future
may effect the availability of reductions in
future contributions and when minimum
funding requirement may give rise to a
liability.
No specific guidance
requires
IND AS-20, In case of non- monetary assets acquired AS-12
Governme at nominal/concessional rate, IND AS–20 acquisition cost.
permits accounting either at fair value.
nt Grants
Grants
relating to
assets
Requires presentation of such grants in
balance sheet only by setting up the grant
as deferred income. Thus, the option to
present such grants by deduction of the
grant in arriving at the carrying amount of
the asset is not available under Ind AS 20.
at
Requires presentation
either on
reduction of assets method or deferred
income method.
IND AS–20 requires separate disclosure of AS-12 has
unfulfilled
conditions
and
other requirement
contingencies if grant has been
recognized.
IND AS 20, Prohibited to be classified as an
Governme extraordinary item.
nt Grants repayment
accounting
no
such
disclosure
Classified as an extraordinary item.
IND AS-21,
Foreign
Exchange.
IND AS 21 - The Effects of Changes in AS 11 - The Effects of Changes in
Foreign
Foreign Exchange Rates
Exchange Rates
IND AS 21,
Effects of
Changes in
Foreign
Exchange
Rates
- functional
and
presentation
currency
Functional currency is the currency of
the primary economic environment in
which the entity operates. Foreign
currency is a currency other than the
functional currency.
Presentation currency is the currency
in which the financial statements are
presented.
Foreign currency is a currency
other than the reporting currency
which is the currency in which
financial statements are presented.
There is no concept of functional
currency.
IND AS 21,
Effects of
Changes in
Foreign
Exchange Rates exchange
differences
IND AS 21, Effects
of Changes in
Foreign Exchange
Rates - change in
functional
Currency
Exchange differences arising on
translation or settlement of
foreign currency long term
monetary items are recognised in
equity in the period in which they
arise.
Similar to IFRS, except that exchange
differences on translation of monetary foreign
currency liabilities incurred upto the end of the
accounting periods commencing on or before
31 March 2004 towards acquisition of fixed
assets are capitalised in the carrying amount of
these assets.
Exchange
differences
on
monetary items, that in substance,
form part of net investment in a
foreign operation, are recognised
in profit or loss in the period in
which they arise in the separate
financial statements and in other
comprehensive income in the
consolidated financial statements.
Exchange differences on monetary items, that
in substance, form part of net investment in a
foreign operation, are recognised in Foreign
Currency Translation Reserve both in the
separate and consolidated financial statements.
Change in functional currency is Change in reporting currency is not dealt
applied prospectively.
with in AS 11, though reason for change is
required to be disclosed.
IND AS 21,
Effects of
Changes in
Foreign
Exchange
Rates translation
in the
consolidate
d financial
statements
Assets and liabilities should
be translated from functional
currency
to
presentation
currency at the closing rate at
the date of the statement of
financial position; income and
expenses at actual/average
rates for the period; exchange
differences are recognised in
other comprehensive income
and recycled to profit or loss
on disposal of the operation.
Translation of financial statements to the reporting
currency of the parent/investee depends on the
classification of that operation as integral or non
integral.
In the case of an integral operation, monetary assets
are translated at closing rate; non-monetary items
are translated at historical rate if they are valued at
cost and at closing rate if they are valued on other
valuation basis and income and expense items are
translated at historical/average rate. Exchange
differences are taken to the statement of profit and
loss.
For non-integral operations, closing rate method
should be followed (i.e. all assets and liabilities are
to be translated at closing rate while profit and loss
account items are translated at actual/average rates).
The resulting exchange difference is taken to
reserve and is recycled to profit and loss on the
disposal of the non-integral foreign operation.
Accounted for as a • Forward contracts not intended for trading or speculation
IND AS
derivative.
purposes:
21,
(i) Any premium or discount arising at the inception of a
Effects of
forward exchange contract is amortised as expense or income
Changes
over the life of the contract.
in
(ii) Exchange differences on such a contract are recognised in
Foreign
the statement of profit and loss in the reporting period in
Exchange
which the exchange rates change. Exchange difference on a
Rates forward exchange contract is the difference between
forward
(a) the foreign currency amount of the contract translated at
contracts
the exchange rate at the reporting date, or the settlement date
where the transaction is settled during the
reporting period, and
(b) the same foreign currency amount translated at the latter of
the date of inception of the forward exchange contract and the
last reporting date.
• Forward exchange contract intended for
trading or speculation purposes:
The premium or discount on the contract is ignored and at
each balance sheet date, the value of the contract is marked to
its current market value and the gain or loss on the contract is
recognised.
IND AS-23,
Borrowing
Costs
IND AS–23 prescribes borrowing AS–16 mandates capitalization of
costs to be recognized as expense as borrowing costs, where the relevant
benchmark treatment. It allows conditions are fulfilled.
capitalization
as
an
allowed
alternative.
IND AS–23 requires disclosure of AS-16 does
capitalization rate used to determine disclosure.
the amount of borrowing.
not
require
such
IND AS-24,
Related
Party
Disclosures
The definition of related party under IND AS–24,
includes post employment benefit plans (e.g. gratuity
fund, pension fund) of the enterprise or of any other
entity, which is related party of the enterprise.
AS–18 does not include this relationship.
The definition of key management persons (KPMs)
under IND AS–24 includes any director whether
executive or otherwise i.e. Non – executive directors
are also related party. Further , under ins–24 , if any
person has indirect authority and responsibility for
planning , directing & controlling the activities of the
enterprise , he will be treated as a key Management
Person (KPMs)
AS–18 read with ASI–18 exclude non–
executive directors from the definition of
key management persons. AS–18 does not
specially cover indirect authority &
responsibility.
Father, mother, brother and sister relatives as specified
under the meaning of relative under the Companies
Act, 1956 are added in the definition of the ‘close
members of the family of a person
AS–18 covers relatives of KPMs.
IND AS–24 requires compensation to KPMs to be
disclosed category wise including share based
payments.
AS–18 read with ASI–23 requires
disclosure of remuneration paid to key
management persons but does not mandate
category wise disclosures.
IND AS–24 mandates that no disclosure should be
made to the effect that related party transactions were
made on arms length basis unless terms of the party
transaction can be substantiated.
AS–18 contains no such stipulations.
No concession is provided under IND AS-24 where AS-18 provides exemption
disclosure of information would conflict with the duties disclosure in such cases
of confidentiality in terms statute or regulating authority.
Under IND AS-24, the definition of “control” is
restrictive as it requires power to govern the financial
and operating policies of the management of the
enterprise.
from
Under AS-18, the definition is wider
as it refers to power to govern the
financial and/or operating policies of
the management.
AS-18
includes
control
over
The definition of “control” under IND AS-24 is composition of Board of Directors in
restrictive on the count that it does not include control the definition of “control”.
over the composition of board of directors.
No such disclosure requirement is
IND AS-24 requires disclosure of terms and conditions contained in AS-18.
of outstanding items pertaining to related parties.
AS-18 Prescribe presumption of
IND AS-24 does not prescribe a significant rebuttable significant influence if 20% or more
presumption of influence.
of the voting power held by any party.
No exemption.
Transactions between state controlled
enterprises are not required to be
disclosed under AS-18
IND AS27,
Consolid
ated and
separate
Financial
Statemen
ts.
Under IND AS-27, it is mandatory to
prepare CFS and an entity should prepare
separate financial statements in addition
to CFS only if local regulations so
require.
Under AS-21, it is not mandatory to prepare CFS.
However, listed companies are mandatorily required
by the terms of listing agreement of SEBI to prepare
and present consolidated financial statements.
Under IND AS-27, a subsidiary cannot Under AS-21 .a subsidiary can be excluded from
be excluded from consolidation under consolidation if (1) the subsidiary is acquired and held
any circumstances.
with an intention to dispose ;(2) the subsidiary
operates under severe long term restrictions impairing
its ability to transfer funds to parent.
Under IND AS -27 while determining AS-21 is silent.
whether entity has power to govern
financial and operating policies of other
entity, potential voting rights currently
exercisable should be considered.
Under IND AS -27 the definition of
“control” requires power to govern the
financial and operating policies of the
management of the enterprise.
Control means the ownership directly or indirectly
through subsidiary (ies), of more than one-half of the
voting power of an enterprise; or control over
composition of board of directors for obtaining
economic benefits.
Use of uniform accounting policies for like AS-21,gives exemption from following uniform
transactions while preparing CFS
is accounting policies if the same is not
Mandatory under IND AS-27.
practicable.
Under IND AS-27, minority interests has to Under AS-21, minority interest has to be
be disclosed within equity but separate from separately disclosed from liability and equity of
parent shareholders equity.
parent shareholder.
Under IND AS 103, goodwill/capital reserve Under AS-21, goodwill/capital reserve on
on consolidation is computed on fair values consolidation is computed on the basis of
of assets/liabilities.
carrying value of assets/liabilities.
Under IND AS-27, 3 months’ time gap is Under AS-21, six months time gap is allowed.
permitted between balance sheet dates of
financial statements of Subsidiary and parent.
IND AS-27, prescribes that deferred tax
adjustment as per IND AS-12 should be No deferred tax is to be created on unrealized
made in respect of timing difference arising profit.
out of elimination of unrealized profit.
Acquisition
accounting
requires
drawing up of financial statements as
on the date of acquisition for
computing parent’s portion of equity
in a subsidiary.
IND AS–27 does not require additional
disclosure of list of all subsidiaries
including the name, country of
incorporation,
proportion
of
ownership interest and if different,
proportion of voting power held.
Under AS–21, for computing parent’s
portion of equity in a subsidiary at the
date on which investment is made, the
financial statements of immediately
preceding period can be used as a basis of
consolidation if it is impracticable to draw
financial statement of the subsidiary as on
the date of investment.
AS–21 requires additional disclosure of
list of all subsidiaries including the name,
country of incorporation, proportion of
ownership interest and if different,
proportion of ownership interest and if
different, proportion of voting power held.
Requires consolidation of SPV’s when
No such guidance under AS–21.
certain criteria’s are met.
IND AS-28, Under IND AS-28, potential voting currently
Investments exercisable are to be considered in assessing
Significant influence
in
Associates.
Under ASI-28 potential voting rights
are not considered for determining
voting power in Assessing significant
influence.
As per IND AS-28, difference between Under AS-23, no period is Specified.
balance sheet date of investor and associate Only consistency is mandated.
Cannot be more than three months.
In case uniform accounting Policies are not
followed by Investor & investee, necessary
adjustments have to be made While
preparing consolidated Financial statements
of investor.
Under AS-23, if it is not Practicable
to make such Adjustments, exemption
is given; but appropriate disclosures
are made.
While recognizing losses of Associates/joint
ventures under IND AS-28, carrying amount
of investment in equity & other long term
interests to be considered.
Under AS-23, losses are to be
recognized to the extent of
Investment plus
incurred
Obligations plus payments made
Towards guaranteed obligations.
Under IND AS-28, it is necessary to subject If decline in value of investment in an
the investments in associates/joint ventures associate is permanent, Provision for
to the test of impairment.
diminution to be Made. Impairment
testing is Not required under AS-23.
IND AS-31,
Financial
Reporting
of Interests
in Joint
Ventures
Under IND AS–31, when the investments There is no such provision under AS–
are made by venture capital organization, 27 and there is no separate standard on
mutual funds, unit trusts and similar entities financial instruments.
then those investments are classified as
held for trading and accounted for as per
IND AS–39.
IND AS–31 not to apply if parent is exempt There is no such specific provision
from preparing CFS under IND AS–27. under AS–27.
Similar exemption for investor satisfying
same conditions as parent.
IND AS–31 permits both proportionate AS–27 permits only proportionate
consolidation method and equity method consolidation method.
for recognizing interest in a jointly
controlled equity in CFS. Equity method
prescribed in IND AS–31 is similar to that
prescribed in IND AS–28.
Accounting for subsidiary where joint
control is established through contractual
agreement should be done as joint venture,
i.e. either proportionate consolidation or
equity accounting as the case may be.
Accounting for subsidiary where joint
control
is
established
through
contractual agreement should be done
as subsidiary – i.e. Full consolidation.
IND AS-32,
Financial
Instruments
IND AS–32, IND AS–39 and
IFRS-7 deal with financial
instruments and entity’s own
equity in detail including
matters relating to hedging.
AS–30 and AS–31 corresponding to IND
AS–39 and IND AS–32 respectively
have been issued. It is recommendatory
in 2009 and mandatory from 2011. It
may however be noted that these
standards have not yet been incorporated
in the Companies (Accounting Standard)
Rules.
IND AS33,
Earning
Per
Share
IND AS-33 deals with computation of EPS in case
of Shared – based payment transactions.
IND AS-33 prescribes treatment of written put
options & forward purchase contracts in computing
EPS.
IND AS-33 requires changes in accounting policy
to be given retrospective effect for computing EPS,
which means EPS to be adjusted for prior period
presented.
IND AS-23 does not require disclosure of EPS with
and without extra – ordinary item.
AS-20 does not contain any such provision.
The Guidance note issued by ICAI on
“Employee Share-based Payments” deals with
the same.
AS-20 is silent on this aspect.
AS-20 does not permit such treatment.
AS-20 requires EPS/DEPS with and without
extra – ordinary items to be disclosed
separately.
IND AS-33 does not deal with treatment of
application money held pending allotment.
Under AS-20 application money held pending
allotment should be included in the
computation of diluted EPS.
IND AS -33 requires disclosure of anti dilutive
instruments even though they are ignored for the
purpose of computing dilutive EPS
AS-20 does not mandate such disclosure.
IND AS-33 does not require disclosure of face
value of share.
Disclosure of face value is required under AS20.
IND AS-34,
Interim
Financial
Reporting Primary
Literature
IND AS 34 - Interim Financial AS 25 - Interim Financial Reporting
Reporting
AS 25 is similar to IND AS 34 and
there are no material differences
between the two standards
IND AS 34,
Interim
Financial
Reporting Accounting
policies
Same accounting policies as Similar to IFRS
used in annual financial
statements are used in the
preparation of interim financial
statements.
If there is a change in
accounting policy in the interim
period, previously reported
interim periods are restated.
IND AS-36,
Impairment
of Assets
Ind AS 36
AS 28
Impairment losses on goodwill are not Impairment losses on goodwill are
subsequently reversed.
subsequently reversed only if the
external
event
that
caused
impairment of goodwill no longer
exists and is not expected to recur.
Goodwill acquired on business Goodwill is allocated to CGU’s
combination is allocated to each CGU based on bottom-up and top-down
based on the benefit it would enjoy tests.
from the synergies of the combination.
IND AS-37,
Provisions,
Contingent
Assets and
Contingent
Liabilities
IND AS-37 requires discounting of AS–29 prohibits discounting.
Provisions.
IND AS–37 requires provisioning on AS–29 requires recognition based on legal
the basis of constructive obligation on obligation.
restructuring costs.
IND AS–37 requires disclosure of AS–29 prohibits it.
Contingent Assets in Financial
Statements.
IND AS–37 provides certain basis and AS–29 does not contain any such guidance
statistical methods to be followed for and relies on judgment of management.
arriving at the best estimate of the
expenditure for which provision is
recognized.
AS–29 defines present obligation and
IND AS–37 defines obligation but does possible obligation as well.
not make a distinction between present
obligation and possible obligation.
IND AS 37 gives an exception to this AS 29 states that future operating losses
principle ie. Losses related to onerous upto the date of restructuring are not
contract.
included in a provision.
IND AS-38, There is no presumption under IND AS– Under AS–26, there is a rebuttable
Intangible 38 as regards useful life of an intangible presumption that the useful life of
asset.
intangible assets will not exceed 10 years.
Assets
Under IND AS–38, intangible assets
having “Indefinite useful life” cannot be
amortized. Indefinite useful life means
where, based on analysis, there is no
foreseeable limit to the period over
which the asset is expected to generate
net cash inflow for the entity.
Indefinite is not equal to infinite. Such
assets should be tested for impairment at
each balance-sheet date & separately
disclosed.
There is no concept of indefinite useful life
in AS–26. Theoretically, even for such
assets, amortization would be mandatory,
though the threshold period could exceed
beyond 10 years.
IND AS – 38 does not require any AS – 26 requires test of impairment to be
impairment testing if there are no applied even if there is no indication of that
indications of impairment.
asset being impaired for following assets:*Intangible asset not yet available for use
*Intangible asset amortized over > 10
years.
Under IND AS–38, if Intangible There is no such stipulation under AS–26.
Asset is ‘held for sale’ then
amortization should be stopped.
Under IND AS – 38, R&D AS–26 is silent on this.
expenditure that relates to an inprocess R&D project acquired
separately or in a business
combination shall be accounted as
Intangible Asset.
Under IND AS–38, Revaluation AS–26 does not permit revaluation model.
Model is allowed for accounting
Intangible Asset provided active
market exists.
Web site costs shall be recognised
separately.
No guidance.
IND AS-40,
Investment
Property –
Primary
Literature
IND AS 40 - Investment Property
There is no equivalent standard on
investment property. At present,
covered by AS 13 - Accounting for
Investments.
Investment
Property –
measurement
Investment properties can be Classified as long-term investments
measured using the cost model.
and measured at cost less impairment.
IND AS102,
Share based
payment Primary
literature
IND AS 102 - Share-based
Payment
(covers
share-based
payments both for employees and
non-employees and transactions
involving receipt of goods and
services).
There is no equivalent standard.
However ICAI has issued a guidance note on
Accounting
for
Employee
Share-based
Payments. This guidance note deals only with
employee share-based payments.
The SEBI has also issued the Securities
and Exchange Board of India (Employee
Stock Option Scheme and Employee Stock
Purchase Scheme) Guidelines, 1999.
Sharebased
payment recognition
Recognise as an expense over the No guidance.
vesting period.
Goods and services in a sharebased payment transaction are
recognised when goods are
received or as services are
rendered. A corresponding increase
in equity is recognised if goods and
services were received in an equitysettled
share-based
payment
transaction or a liability if these
were acquired in a cash-settled
share-based payment transaction.
Share
based
payment measurem
ent
For equity settled share-based
transactions, goods and services
received and the corresponding
increase in equity is measured at the
fair value of the goods and services
received. If the fair value of the
goods and services cannot be
estimated reliably, then the value is
measured with reference to the fair
value of the equity instruments
granted.
Both the guidance note and the SEBI
guidelines permit the use of either the
intrinsic value method or the fair value
method for determining the costs of
benefits arising from employee sharebased compensation plans. The guidance
note recommends the use of the fair
value method.
Different valuation techniques may The fair value is estimated using an
be Under the intrinsic value method, option-pricing model (for example, the
the cost applied.
Black-Scholes or a binomial model)
Where an enterprise uses the intrinsic
value method, it should also disclose the
impact on the net results and EPS - both
basic and diluted – for the accounting
period, had the fair value method been
used.
IND AS 103,
Business
Combinations
Business combinations are dealt with under IND
AS 103.
Business combinations are dealt with under
various standards such as AS-14, AS-21, AS23, AS-27 and AS-10.
IND AS 103 allows only purchase method.
Option of pooling method given under IND AS–
22 has been withdrawn.
AS-14, allows both Pooling of interest method
and Purchase method. Pooling method is
allowed subject to certain conditions.
IND AS 103 requires valuation of assets and
liabilities at fair value Even contingent liabilities
are fair valued.
AS–14 requires valuation at carrying value in
the case of pooling method. In the case of
purchase method either carrying value or fair
value may be used. Contingent liabilities are
not fair valued. Under AS–21, AS–23, and
AS–28, goodwill is determined based on book
values rather than fair values.
IND AS 103 requires Goodwill to be tested for
impairment.
AS–14 requires amortization of goodwill. AS–
21, AS–23, and AS–27 are silent. AS–10 also
recommends amortization of goodwill. AS–28
requires impairment testing.
Under IND AS 103, provisional values can be
used provided they are updated retrospectively
within 12 months with actual values.
Specific guidance provided in Appendix C –
pooling of interest method required to be
followed in case of business combinations of
entitites under common control
AS–14 contains no such similar provision.
No such guidance.
IND AS-105,
Non-current assets
held for sale and
discontinued
operations
- Primary literature
IND AS 105 - Non-current assets
held for sale and discontinued
operations
A discontinued operation is a
component of an entity that either
has been disposed or is classified
as held for sale.
AS 24 – Discontinuing Operations
AS 10 - Accounting for Fixed
Assets
There is no concept of discontinued
operation but it deals with
discontinuing operations.
IND AS 105, Noncurrent
assets held for sale
and discontinued
operations recognition
Non-current assets to be disposed
of are classified as held for sale
when the asset is available for
immediate sale and the sale is
highly probable.
There is no standard dealing with
non-current assets held for sale
though AS 10 deals with assets held
for disposal. Items of fixed assets
that have been retired from active
use and are held for disposal are
stated at the lower of their net book
value and net realizable value and
are shown separately in the financial
statements. Any expected loss is
recognised immediately in the
statement of profit and loss.
Depreciation ceases on the date
when the assets are classified as
held for sale.
Non-current assets classified as
held for sale are measured at the
lower of its carrying value and
fair value less costs to sell.
IND AS 105, Noncurrent
assets held for
sale and
discontinued
operations classification
An operation is classified as
discontinued when it has either
been disposed of or is
classified as held for sale.
An operation is classified as
discontinuing at the earlier of (a)
binding sale agreement for sale of the
operation and (b) on approval by the
board of directors of a detailed formal
plan and announcement of the plan.
The sale should be expected to The existing AS 24 does not specify
qualify for recognition as a any time period in this regard as it
completed sale within one year relates to discontinuing operations.
from the date of classification
with certain exceptions.
IND AS-108,
Segment
Reporting
IND AS 108,
Operating
Segments determination of
segments
IND AS 108 - Operating AS 17 - Segment Reporting
Segments (effective 1 January
2009 and replaces IND AS 14,
Segment Reporting)
Operating
segments
are
identified based on the financial
information that is evaluated
regularly by the chief operating
decision maker in deciding how
to allocate resources and in
assessing performance.
AS 17 requires an enterprise to identify
two sets of segments (business and
geographical), using a risks and rewards
approach, with the enterprise’s system of
internal financial reporting to key
management personnel serving only as
the starting point for the identification of
such segments.
Prescribes treatment of revenue, expense, AS–17 is silent on the aspect of
profit/loss, assets and liabilities in relation to treatment is consolidated financial
Associates & Joint Ventures in consolidated statement.
financial statements.
Encourages reporting of vertically integrated
activities as separate segments but does not AS–17 does not make any distinction
mandate the disclosure.
between vertically integrated segment
and other segment.
Provides that a business segment only if, inter
alia, majority of its revenue is earned from sales to AS–17 does not contain any such
external customers.
stipulation.
If a reportable segment ceases to meet threshold
requirements, then also it remains reportable for Under AS–17, this is mandatory
one year if the management judges the segment to irrespective of the judgment of
be of continuing significance.
management.
In the case of change in identification of
segments, IFRS-8 requires restatement of prior
period segment information. In case it is not
practicable, IFRS–8 requires disclosure of data for
both the old and new bases of segmentation.
AS–17 requires only disclosure of the
nature of the change and financial effect
of
the change,
if
reasonably
determinable. .
IND AS 101
First Time Adoption
Detail first time adoption rules No first time adoption rules.
exist.
Ind AS 104 - Insurance
Contracts
Detailed rules exist.
No guidance
Ind AS 106 –
Exploration for and
Evaluation of Mineral
Resources
Detailed rules exist.
No guidance
IAS 26 - Accounting
and Reporting by
Retirement Benefit
Plans
No IND AS has been finalised.
IAS 41 - Agriculture
No IND AS has been finalised.
IFRS 9 - Financial
Instruments
No IND AS has been finalised.
KEY DIFFERENCES BETWEEN IND AS
AND IFRS.
Major Carve Outs
 Revenue recognition for real estate developers included in scope of IAS 11.




Consequently, IFRIC 15 has not been adopted
Accounting for FCCB as a compound financial instrument with the
conversion feature attributed as equity component
Recognition of gain on day one accounting for a business combination in
capital reserve as opposed to income statement under IFRS 3
Government bond rate as discount rate for measurement of employee
benefit obligations as opposed to a highly rated corporate bond rate under
IAS 19
Fair value of financial liabilities designated as at FVTPL at inception to
ignore own credit risk – no such exemption available under IAS 39
Ind AS 1 Presentation of Financial Statements
SR
No.
Particulars
Ind AS requirement
IFRS requirement
1.
Single statement
approach
Ind AS 1 allows only the single
statement approach.
With regard to preparation of Statement of
profit and loss, IAS 1 provides an option
either to follow the single statement
approach or to follow the two statement
approach.
2.
Presentation of
statement of
changes in equity
Ind AS 1 requires the statement of
changes in equity to be shown as a
part of the balance sheet.
IAS 1 requires preparation of a Statement of
changes in equity as a separate statement.
3.
Classification of
expenses based on
nature
Ind AS 1 requires only nature-wise
classification of expenses.
Paragraph 99 of IAS 1 requires an entity to
present an analysis of expenses recognised
in profit or loss using a classification based
on either their nature or their function
within the entity.
4.
Option for 52
weeks period
Ind AS 1 does not permit 52 weeks
period.
Paragraph 37 of IAS 1 permits the
periodicity, for example, of 52 weeks for
preparation of financial statements.
5.
Implementation
guidance
Ind AS 1 does not include
implementation guidance because
various enactments have prescribed
formats, e.g., Schedule VI to the
Companies Act, 1956.
IAS 1 contains implementation guidance.
Ind AS 2 Inventories
SR
No.
1.
Particulars
Ind AS requirement
IFRS requirement
Recognition of
inventories based on
function wise
classification
Paragraph 38 of IAS 2 dealing with
recognition of inventories as an
expense based on function-wise
classification, has been deleted
keeping in view the fact that
option provided in IAS 1 to present an
analysis of expenses recognised in
profit or loss using a classification
based on their function within the
equity has been
removed and Ind AS 1 requires only
nature -wise classification of
expenses.
IAS 2 allows recognition of
inventories as an expense
based on function-wise
classification.
Ind AS 7 Statement of Cash Flows
SR
No.
1.
Particulars
Ind AS requirement
IFRS requirement
Classification of
interest and
dividends received
and paid
Ind AS 7 does not provide the
option to classify them as
operating activities. It requires
interest and dividend received to
be classified as investing activity
and interest and dividend paid as
financing.
In case of other than financial
entities, IAS 7 gives an option to
classify the interest paid and
interest and dividends received and
paid as item of operating cash
flows.
Ind AS 11 Construction Contracts
SR
No.
1.
Particulars
Ind AS requirement
IFRS requirement
Real Estate
Developers included
in scope of IAS 11
This has been dealt with under Ind
AS 11, since it has been kept out
of the scope t of Ind AS 18,
Revenue.
IAS 11 does not deal with
accounting for construction
contracts in respect of real estate
developers.
IND AS 17 – Leases
SR
No.
1.
Particulars
Ind AS requirement
Land & Building – As Relevant paragraphs of IAS 17
Investment
dealing with measurement of the
Property
land and buildings elements when
the lessee’s interest in both land and
buildings is classified as an
investment property in accordance
with Ind AS 40 Investment Property
if the fair value model is adopted
and paragraph 19 of IAS 17 dealing
with property interest held under an
operating Lease as an investment
property, if the definition of
investment property is otherwise
met and fair value model is applied,
have been deleted, since Ind AS 40,
Investment Property, prohibits the
use of fair value model.
IFRS Requirement
Both cost and fair value option
are prescribed for investment
property under Ind AS 40, for
which corresponding guidance is
given under IAS 17.
Ind AS 19 Employee Benefits
SR
No.
Particulars
Ind AS requirement
IFRS requirement
1.
Accounting for
actuarial gains and
losses
Actuarial gains and losses to be
recognised in other comprehensive
income, both for post -employment
defined benefit plans and other longterm employment benefit plans. The
actuarial gains recognised in other
comprehensive income should be
recognised immediately in retained
earnings and should not be reclassified
to profit or loss in a subsequent period.
IAS 19 permits various options for
treatment of actuarial gains and
losses for post-employment
defined benefit plans
2.
Discount rate to be
used
Rate to be used to discount post –
employment benefit obligation shall be
determined by reference to the market
yields on government bonds,
Rate of government bonds can be
used only where there is no deep
market of high quality corporate
bonds.
3.
Frequency of
actuarial valuation
Detailed actuarial valuation of defined
benefit obligations may be made at
intervals not exceeding three years.
No such periodic requirement.
IND AS 20 – Accounting for Government Grants and Disclosure
of Government Assistance
SR
No.
Particulars
IND AS Requirement
IFRS Requirement
1.
Non-Monetary Govt.
Grants Measurement
Options
Requires measurement of such
grants only at their fair value.
IAS 20 gives an option to measure
non -monetary government grants
either at
their fair value or at nominal value.
2.
Grants related to
assets - Presentation
Requires presentation of such
grants in balance sheet only by
setting up the grant as deferred
income. Thus, the option to present
such grants by deduction of the
grant in arriving at the carrying
amount of the asset is not available
under Ind AS 20.
IAS 20 gives an option to present the
grants related to assets, including
non monetary grants at fair value in the
balance sheet either by setting up
the grant as deferred income or by
deducting the grant in arriving at the
carrying amount of the asset.
Further, requirements regarding
presentation of grants related to
income in the separate income
statement, where separate in come
statement is presented under IAS 20
have been deleted.
Ind AS 21 The Effects of Changes in Foreign Exchange
SR
No.
1.
Particulars
Ind AS requirement
IFRS requirement
Option to
recognise
exchange
differences
on certain
long term
monetary
items
Ind AS 21 permits an option to recognise exchange
differences arising on translation of certain long-term
monetary items from foreign currency to functional
currency directly in equity. In this situation, Ind AS 21
requires the accumulated exchange differences to be
transferred to profit or loss over the period of maturity of
such long -term monetary items in an appropriate
manner.
For above purpose, a monetary asset/liability shall be
treated as long-term, if that asset/liability has a maturity
period of twelve months or more from the date of the
initial recognition of that asset/liability.
IAS 21 requires
exchange
differences arising
on restatement of
foreign currency
monetary items,
both long term and
short terms, to be
recognized in profit
or loss for the
period.
Option as per para 29A of Ind AS 21 –
(i) Unrealized exchange differences arising on long -term monetary assets/liabilities denominated in a
foreign currency shall be recognised directly in equity and accumulated in a separate component of
equity. The amount so accumulated shall be transferred to profit or loss over the period of maturity of
such long -term monetary items in an appropriate manner. The separate component of equity shall be
distinguished from any other component of equity representing any other exchange difference
recognised in other comprehensive income and accumulated in equity.
(ii) The option provided in paragraph 29A(i) is not available for the long-term monetary assets and
long-term monetary liabilities during the period they are classified as at fair value through profit or loss
in accordance with Ind AS 39, either because they are held for trading or because of their designation
as at fair value through profit or loss.
(iii) The option provided in paragraph 29A(i) shall be exercised for the first time when the exchange
difference arising on a long -term monetary asset or a long-term monetary liability mentioned in
paragraph 29A(i) is recognised. The option, once exercised, shall be irrevocable and shall be exercised
in respect of all the long-term monetary assets and long-term monetary liabilities mentioned in
paragraph 29A(i).
IND AS 23 – Borrowing Costs
SR
No.
1.
Particulars
IND AS Requirement
Guidance for
Provides additional guidance on
Exchange Difference foreign exchange difference
Treatment
inclusion in the borrowing cost .
IFRS Requirement
No such guidance is there in the
IAS 23.
As per para 6(e) of Ind AS 23 – Borrowing costs include exchange differences arising from foreign
currency borrowings to the extent that they are regarded as an adjustment to interest costs.
Additional guidance under Ind AS 23
As per para 6A of Ind AS 23, manner of arriving adjustments stated above shall be as follows :
a) the adjustment should be of an amount which is equivalent to the extent to which the exchange
loss does not exceed the difference between the cost of borrowing in rupees when compared to
the cost of borrowing in a foreign currency.
b) where there is an unrealized exchange loss which is treated as an adjustment to interest and
subsequently there is a realized or unrealized gain in respect of the settlement or translation of
the same borrowing, the gain to the extent of the loss previously recognized as an adjustment
should also be recognized as an adjustment to interest.
Ind AS 24 Related Party Disclosures
SR
No.
Particulars
Ind AS requirement
IFRS requirement
1.
Disclosures not
required if prohibited
by statue
Disclosures which conflict with confidentiality
requirements of statute/regulations are not required to
be made since Accounting Standards can not override
legal/regulatory requirements.
No such exclusion is
given under IAS 24.
2.
Definition of close
members
Father, mother, brother and sister relatives as specified
under the meaning of relative under the Companies Act,
1956 are added in the definition of the ‘close members of
the family of a person
This provision not
included in the
definition of close
members of the family
of a person in IAS 24.
3.
Additional guidance
on aggregation of
transactions for
disclosure
Disclosure of details of particular transactions with
individual related parties would frequently be too
voluminous to be easily understood. Accordingly, items
of a similar nature may be disclosed in aggregate by type
of related party.
However, this is not done in such a way as to obscure the
importance of significant transactions. Hence, purchases
or sales of goods are not aggregated with purchases or
sales of fixed assets. Nor a material related party
transaction with an individual party is clubbed in an
aggregated disclosure
No such guidance.
Ind AS 27 Consolidated and Separate Financial Statements
SR
No.
1.
Particulars
Ind AS requirement
IFRS requirement
Exemption not
provided in Ind AS 27
Exclusion from preparing
consolidated financial statements
given under para 10 of IAS 27, have
been deleted under Ind AS 27. Other
reference paragraphs related to para
10 have been suitably amended.
As per para 10 of IAS 27, subject to
certain conditions an entity may not
be required to prepare consolidated
financial statements.
Refer para 10 of IAS 27 below.
Option as per para 10 of IAS 27 –
A parent need not present consolidated financial statements if and only if:
(a )the parent is itself a wholly-owned subsidiary, or is a partially-owned subsidiary of another entity and its other
owners, including those not otherwise entitled to vote, have been informed about, and do not object to, the parent
not presenting consolidated financial statements;
(b) the parent's debt or equity instruments are not traded in a public market (a domestic or foreign stock exchange
or an over-the-counter market, including local and regional markets);
(c) the parent did not file, nor is it in the process of filing, its financial statements with a securities commission or
other regulatory organization for the purpose of issuing any class of instruments in a public market; and
(d) the ultimate or any intermediate parent of the parent produces consolidated financial statements available for
public use that comply with International Financial Reporting Standards.
Ind AS 28 Investments in Associates
SR
No.
Particulars
Ind AS requirement
IFRS requirement
1.
Difference in
periods for
consolidation
Impracticability exemption if the difference in the
financial statements of the associate is more than 3
months and for not following uniform accounting
policies
No such exemption
2.
Scope exclusion
Paragraph 1(b) of IAS 28 has been deleted in Ind AS 28
as the Companies Act, 1956, is not applicable to
mutual funds, unit trusts and similar entities including
investment linked insurance funds and, thus, this
standard would not be applicable to such entities.
Mutual funds, unit trusts and
similar entities including
investment-linked insurance
funds are included in the
scope of IAS 28.
3.
Exemption not
provided in Ind AS
28
Paragraphs 5, 13(b) and 13(c) have been deleted as
the applicability or exemptions to the Indian
Accounting Standards is governed by the Companies
Act and the Rules made there under.
Exemption from applying
equity method accounting is
given under para 5, 13(b) and
13(c) of IAS 28.
Exemption similar to para 10
of IAS 27.
4.
Transfer to capital
reserve
Paragraph 23 (b) of Ind AS 28, has been modified on
the lines of Ind AS 103 to transfer excess of the
investor’s share of the associate’s identifiable assets
and liabilities over the cost of investment in capital
reserve.
In IAS 28, such excess is
recognised in profit or loss.
Ind AS 29 Financial Reporting in Hyperinflationary
Economies
SR
No. Particulars
1.
Additional
disclosure under
Ind AS 29
Ind AS requirement
IFRS requirement
Additional disclosure for the
duration of the
hyperinflationary situation
existing in the economy is
required under para 39 of Ind
AS 29.
No disclosure for duration
required under IAS 29.
Ind AS 31 Interests in Joint Ventures
SR
No. Particulars
Ind AS requirement
IFRS requirement
1.
Scope exclusion
Paragraph 1(b) of IAS 31 has been
deleted in Ind AS 31 as the
Companies Act,1956, is not
applicable to mutual funds, unit
trusts and similar entities
including investment linked
insurance funds and, thus, this
standard would not be applicable
to such entities.
Mutual funds, unit trusts and
similar entities including
investment-linked insurance funds
are included in the scope of IAS 31.
2.
Exemption not
provided in Ind AS
31
Sub-Paragraphs 2(b) and (c) and
paragraph 6 have been deleted as
the applicability or exemptions to
the Indian Accounting Standards is
governed by the Companies Act
and the Rules made there under.
Exemptions similar to those under
para 10 of IAS 27.
Exemption from applying
proportionate consolidation/equity
method accounting is given under
para 2(c) and 6 of IAS 31.
Exemption similar to para 10 of IAS
27.
Ind AS 32 Financial Instruments: Presentation
SR
No.
Particulars
Ind AS requirement
IFRS requirement
1.
Exception to
definition of
financial liability
As an exception to the definition of ‘financial
liability’ in paragraph 11 (b) (ii), Ind AS 32
considers the equity conversion option
embedded in a convertible bond denominated
in foreign currency to acquire a fixed number of
entity’s own equity instruments is considered an
equity instrument if the exercise price is fixed in
any currency.
No such exception is given
under IAS 32.
2.
Presentation of
dividend classified
as expense
Requirements regarding presentation of
dividends classified as an expense in the
separate income statement, where separate
income stateme nt is presented, have been
deleted. This change is consequential to the
removal of option regarding two statement
approach in Ind AS 1 . Ind AS 1 requires that the
components of profit or loss and components of
other comprehensive income shall be presented
as a part of the statement of profit and loss.
Dividends classified as an
expense may be presented
in the statement of
comprehensive income or
separate income statement
(if presented) either with
interest on other liabilities or
as a separate item.
IND AS 33 – Earnings per Share
SR
No.
Particulars
IND AS Requirement
IFRS Requirement
1.
EPS Disclosure in
Standalone &
Consolidated Financials
Ind AS 33 requires EPS related information
to be disclosed both in consolidated
financial statements and separate financial
statements.
IAS 33 provides that when an entity
presents both consolidated financial
statements and separate financial
statements, it may give EPS related
information in consolidated
financial
statements only.
2.
Applicability of
Standard (Para 2)
The applicability para has been deleted in
the Ind AS as the same is governed by the
Companies Act and the Rules made there
under in India.
It applies while preparing the
standalone or consolidated financial
statements of the following
companies :
 Listed or
 In process of Listing
3.
Additional
Specifications
Where any item of income or expense
which is otherwise required to be
recognized in profit or loss in accordance
with accounting standards is debited or
credited to securities premium
account/other reserves, the amount in
respect thereof shall be deducted from
profit or loss from continuing operations
for the purpose of calculating basic
earnings per share.
No such specification made in IAS
33.
IND AS 33 – Earnings per Share
SR
No. Particulars
IND AS Requirement
IFRS Requirement
4.
EPS Disclosure in
Standalone &
Consolidated
Financials
Under IND AS 33, an entity should
not present the EPS which is
based on consolidated financial
statements in its separate
financial statements.
No such requirement
5.
Certain disclosures
deleted
Disclosure of amounts per share
using a reported component,
basic and diluted earnings per
share and basic and diluted
earnings per share for
discontinued operations in the
separate income statement,
These are required to be disclosed
IND AS 34 – Interim Financial Reporting
SR
No. Particulars
IND AS Requirement
IFRS Requirement
1.
Preparation
Approach for Profit
& Loss
It allows only single statement
approach on the lines of Ind AS 1,
Presentation of Financial
Statements.
For preparation of statement of
profit and loss, International
Accounting Standard (IAS) 34,
Interim Financial Reporting,
provides option either to follow
single
statement approach or to follow
two statement approaches.
2.
Statement of
Changes in Equity
Ind AS 34 requires the statement
of changes in equity to be shown
as a
part of the balance sheet on the
lines of Ind AS 1, Presentation of
Financial
Statements.
IAS 34 requires preparation of a
Statement of Changes in Equity as
a separate statement.
IND AS 36 – Impairment of Assets
SR
No. Particulars
1.
IND AS Requirement
Investment Property Ind AS 36 does not specify such
- Impairment
requirement, as Ind AS 40 permits
the cost model only.
IFRS Requirement
Paragraph 2(f) of IAS 36 states that
the standard shall not be applied
for
accounting for the impairment of
the investment property that is
measured at fair value.
IND AS 38 – Intangible Assets
SR
No. Particulars
1.
Intangible through
Govt. Grant Recognition
IND AS Requirement
IFRS Requirement
Allows only fair value for
recognising the intangible asset
and grant in accordance with Ind
AS 20.
With regard to the acquisition of
an intangible asset by way of a
government
grant, IAS 38, Intangible Assets,
provides the option to an entity to
recognise both asset and grant
initially at fair value or at a nominal
amount plus any expenditure that
is directly attributable to preparing
the asset for its intended use.
IND AS 39 – Financial Instruments: Recognition and
Measurement
SR
No. Particulars
1.
Fair Value for
Financial Liabilities
IND AS Requirement
IFRS Requirement
A provisio has been added in Ind
AS 39 that in determining the fair
value of the
financial liabilities which upon
initial recognition are designated
at fair value through profit or loss,
any change in fair value
consequent to changes in the
entity’s own credit risk shall be
ignored.
IAS 39 requires all changes in fair
values in such liabilities to be
recognised in profit & loss account.
IND AS 40 – Investment Property
SR
No Particulars
IND AS Requirement
IFRS Requirement
1.
Measurement
Principles
Ind AS 40 permits only the cost
model for measurement of
investment properties after
initial recognition .
IAS 40 permits both cost model
and fair value model (except in
some situations) for
measurement of investment
properties after initial
recognition .
2.
Operating Lease
Treatment
Ind AS 40 prohibits the use of
fair value model, accordingly
the treatment specified under
IAS 40 is prohibited in Ind AS
40
IAS 40 permits treatment of
property interest held in an
operating lease as investment
property, if the definition of
investment property is otherwise
met and fair value model is
applied. In such cases, the
operating lease would be
accounted as if it were a finance
lease.
Ind AS 101 First-time Adoption of Indian Accounting
Standards
SR
No.
Particulars
Ind AS requirement
IFRS requirement
1.
Option for transition
date under Ind AS
Ind-AS 101, however, provides that the date
of transition is the beginning of the current
period and in addition provides an option to
present comparative financial statements in
accordance with Ind-AS on a memorandum
basis.
IFRS 1 defines transitional date as
beginning of the earliest period for
which an entity presents full
comparative information under IFRS.
It is this date which is the starting
point for IFRS and it is on this date
the cumulative impact of transition is
recorded based on assessment of
conditions at that date by applying
the standards retrospectively except
to the extent specifically provided in
this standard as optional exemptions
and mandatory exceptions.
2.
Adoption of
previously filed IFRS
financial statements.
Paragraph 2A of Ind AS 101 states that the
entities that have filed financial statements
prepared in accordance with IFRS with
regulatory authorities can adopt, for the
purpose of Ind AS 101, the balance sheet so
filed as at the end of the immediately
preceding financial year as the opening Ind
AS balance sheet after making adjustments
for differences between Ind-ASs and IFRSs.
IFRS 1 does not have such a specific
requirement.
Ind AS 101 First-time Adoption of Indian Accounting
Standards contd.
SR
No Particulars
Ind AS requirement
IFRS requirement
3.
Elimination of
effective dates prior to
transition date for
optional exemptions
For Ind-AS 101 purposes, all these
dates have been changed to coincide
with the transition date elected by the
entity adopting these converged
standards.
Paragraph B2 of IFRS 1 provides that, an
entity would have had to adopt the derecgonition requirements for transactions
entered after 1 January, 2004.
4.
Deletion of certain
exemptions not
relevant for India –
Corridor approach
exemption
In India, since corridor approach is not
elected, the resultant first time
transition provision has been deleted.
Paragraph D10 of IFRS 1 provides an entity
that adopted the corridor approach for
recording actuarial gain and losses arising
from accounting for employee obligations
with an option to recognize the entire such
gain or loss to retained earnings, at the
date of transition, rather than requiring
them to split such gains and losses as
recognized and unrecognized gains and
losses.
5.
Deletion of certain
exemptions not
relevant for India –
Borrowing costs
exemption
However, this is not relevant in Indian
situation as Ind AS 23 AS 16 always
required an entity to capitalize
borrowing costs as compared to IAS
23 where it provided an option to
expense out such borrowing cost .
Paragraph D23 of IFRS 1 provides for
transitional adjustment requiring
companies to apply the provisions of IAS 23
to be applied prospectively after the
transition date.
Ind AS 101 First-time Adoption of Indian Accounting
Standards contd.
SR
No
Particulars
Ind AS requirement
IFRS requirement
6.
Inclusion/modi
fication of
existing
exemptions –
PPE,
Investment
property at
cost and
Intangile assets
Additional option apart from fair value Paragraph D7A provides an entity option to use carrying values
of all such assets on or before April 1, 2007 in accordance with
previous GAAP as an acceptable starting point under Ind-AS.
Paragraph 27B has been included in Ind AS 101 which requires
the disclosure of the fact and accounting policy if an entity
adopts for first time exemption the option provided in
accordance with paragraph D7A. This disclosure is required until
such time that significant block of such assets is fully
depreciated or derecognized from the entity’s Balance Sheet.
For detailed guidance refer slide at the end.
Subsequent to an entity taking this option, the entity will
capitalize and amortize the assets as per Ind AS 16.
Fair value option –
As per para D5 of IFRS 1, an entity
may elect to measure an item of
property, plant and equipment at
the date of transition to IFRSs at its
fair value and use that fair value as
its deemed cost at that date.
7.
Inclusion/modi
fication of
existing
exemptions –
IFRIC 4
A first-time adopter may apply paragraphs 6-9 of the Appendix
C of Ind AS 17 “Determining whether an Arrangement contains
a Lease” to determine whether an arrangement existing at the
date of transition to Ind-ASs contains a lease on the basis of
facts and circumstances existing at the date of transition to Ind AS except where the effect is expected to be not material.
A first-time adopter may apply the
transitional provisions in IFRIC 4
“Determining whether an
Arrangement contains a Lease”.
Therefore, a first-time adopter may
determine whether an
arrangement existing at the date of
transition to IFRSs contains a lease
on the basis of facts and
circumstances existing at that date.
Ind AS 101 First-time Adoption of Indian Accounting
Standards contd.
SR
No
Particulars
Ind AS requirement
IFRS requirement
8.
Inclusion/modifi
cation of
existing
exemptions –
Actuarial
gains/losses
Paragraph D11A has been added to provide the
transitional relief from the retrospective application
of Ind AS 19 that a first-time adopter may elect to
recognise all cumulative actuarial gains and losses
subsequent to the date of transition to Ind-AS in
other comprehensive income as Ind AS 19 requires
recognition of actuarial gains and losses for post employment defined benefit plans and other longterm employment benefit plans in other
comprehensive income immediately and are not
reclassified to profit or loss in a subsequent period.
As per para D10 of IFRS 1, in
accordance with IAS 19 Employee
Benefits, an entity may elect to use
a 'corridor' approach that leaves
some actuarial gains and losses
unrecognised. However, a firsttime adopter may elect to
recognise all cumulative actuarial
gains and losses at the date of
transition to IFRSs, even if it uses
the corridor approach for later
actuarial gains and losses.
9.
Inclusion/modifi
cation of
existing
exemptions –
Exchange
differences
On the date of transition, if there are long -term
monetary assets or long term monetary liabilities
mentioned in paragraph 29A of Ind AS 21, an entity
may exercise the option mentioned in that paragraph
either retrospectively or prospectively. If this option
is exercised prospectively, the accumulated exchange
differences in respect of those items are deemed to
be zero on the date of transition
No such provision in IFRS 1
Ind AS 101 First-time Adoption of Indian Accounting
Standards contd.
SR
No
Particulars
Ind AS requirement
IFRS requirement
10.
Inclusion/modificat
ion of existing
exemptions –
Impracticability for
financial
instruments
Para D19A - Financial instruments carried at amortised
cost should be measured in accordance with Ind-AS 39
from the date of recognition of financial instruments
unless it is impracticable (as defined in Ind AS 8) for an
entity to apply retrospectively the effective interest
method or the impairment requirements
No such provision in IFRS 1.
11.
Inclusion/modificat
ion of existing
exemptions – Fair
value category
Financial
instruments
D19B has been added to provide that financial
instruments measured at fair value shall be measured at
fair value as on the date of transition to Ind -AS.
No such provision in IFRS 1
12.
Inclusion/modificat
ion of existing
exemptions – Non
current assets held
for sale
Paragraph D-26 has been added to provide for
transitional relief while applying Ind AS 105 - Noncurrent Assets Held for Sale and Discontinued
Operations .Paragraph D26 provides an entity to use the
transitional date circumstances to measure such assets
or operations at the lower of carrying value and fair
value less cost to sell
No such provision in IFRS 1
Ind AS 103 Business Combinations
SR
No. Particulars
Ind AS requirement
IFRS requirement
Ind AS 103 requires the same to be
recognised in other comprehensive
income and accumulated in equity as
capital reserve, unless there is no clear
evidence for the underlying reason f or
classification of the business
combination as a bargain purchase, in
which case, it shall be recognised
directly in equity as capital reserve.
IFRS 3 requires bargain purchase
gain arising on business
combination to be reconised in
profit or loss.
1.
Bargain
purchase gain
on business
combinations
2.
Business
Specific guidance provided in Appendix
combinations of C – pooling of interest method
entities under
required to be followed in such cases
common
control
Excluded from the scope of IFRS 3
Para D7A and D8B of Ind AS 101 – Deemed cost –
additional option under Ind AS 101
Additional option for deemed cost as per para D7A of Ind AS 101 –

A first-time adopter may elect to continue with the carrying value as at the date of transition to IndAS, for all of its PPE as recognised in the financial statements as at the end of the financial year
ending as at March 31, 2007 or relevant date immediately preceding date where it has a different
financial year, e.g., December 31, 2006 and which were measured as per the previous GAAP and use
that as its deemed cost as at the date of transition to Ind-AS after making adjustments on the date of
transition in accordance with paragraph D21 and D21A for decommissioning liability exemption of
this standard.

In the consolidated financial statements of an entity where PPE of subsidiary/joint venture/associate
have been measured as per the previous GAAP for the purpose of consolidation then the amounts so
used for the purpose of consolidation should be considered for the aforesaid optional exemption.

If an entity is preparing its consolidated financial statements for the first time and if any of its
subsidiary/jointly controlled entity/associate has not measured PPE in accordance with the previous
GAAP, then to that extent the first time adopter should re-compute carrying values of the property,
plant and equipment in accordance with the principles of Ind AS 16: PPE as on the date of transition
to Ind-AS after considering the first time adoption exemption available in this standard for that
subsidiary/jointly controlled entity/associate.
Thank You
CA. KISHOR PARIKH
B.com.FCA.Dip.IFR (U.K.)
09820375766
kmparikh1950@yahoo.co.in
Mumbai, India