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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 Policies, Changes in Accounting Estimates and Errors
AS 4 Contingencies and Events occurring after Balance Sheet Date
Ind AS 10 Events after the Reporting PeriodInd AS 10 Appendix A
IAS 10 Events after the Reporting PeriodIFRIC 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 ContractsInd AS 11 Appendix A (deferred)Ind AS 11 Appendix B (deferred)
IAS 11 Construction ContractsIFRIC 12 Service Concession ArrangementsSIC 29 Disclosure – Service Concession Arrangements
AS 7 Construction Contracts
Ind AS 12 Income TaxesInd AS 12 Appendix A
Ind AS 12 Appendix B
IAS 12 Income TaxesSIC 21 Income Taxes – Recovery of Revalued Non-Depreciable AssetsSIC 25 Income Taxes – Changes in the Tax Status of an Enterprise or its Shareholders
AS 22 Accounting for Taxes on Income
Ind AS 16 Property, Plant and Equipment
IAS 16 Property, Plant and Equipment
AS 10 Accounting for Fixed AssetsAS 6 Depreciation Accounting
Ind AS 16 Appendix A
IFRIC 1 Changes in Existing Decommissioning, Restoration and Similar Liabilities
Ind AS 17 LeasesInd AS 17 Appendix A
Ind AS 17 Appendix B
Ind AS 17 Appendix C (Deferred)
IAS 17 LeasesSIC 15 Operating Leases – IncentivesSIC 27 Evaluating the Substance of Transaction involving the Legal Form of a LeaseIFRIC 4 Determining Whether an Arrangement contains a Lease
AS 19 Leases
Ind AS 18 RevenueInd AS 18 Appendix A
Ind AS 18 Appendix B
Ind AS 18 Appendix C
IAS 18 RevenueSIC 31 Revenue – Barter Transactions Involving AdvertisingIFRIC 13 Customer Loyalty ProgrammesIFRIC 18 Transfer of Assets from Customers
AS 9 Revenue Recognition
Ind AS 19 Employee BenefitsInd AS 19 Appendix A
Ind AS 19 Employee BenefitsInd AS 19 Appendix A
AS 15 Employee Benefits
Ind AS 20 Accounting For Government Grants and Disclosure of Government AssistanceAppendix A Government Assistance – No Specific Relation in Operating Activities
Ind AS 20 Accounting For Government Grants and Disclosure of Government AssistanceAppendix 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
SIC 12 Consolidation – Special Purpose Entities
AS 21 Consolidated Financial Statements
Ind AS 28 Investment in Associates
IAS 28 Investment in Associates
AS 23 Accounting for Investments in Associates in Consolidated Financial Statements
Ind AS 29 Financial Reporting in Hyperinflationary EconomiesInd AS 29 Appendix A
IAS 29 Financial Reporting in Hyperinflationary Economies
IFRIC 7 Applying the Restatement Approach under IAS 29 Financial Reporting in Hyperinflationary Economies
No standard
Ind AS 31 Interest in Joint VenturesInd AS 31 Appendix A
IAS 31 Interest in Joint Ventures
SIC 13 Jointly Controlled Entities – Non-Monetary Contributions by Venturers
AS 27 Financial Reporting of Interests in Joint Ventures
Ind AS 32 Financial Instruments: PresentationInd 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 ReportingInd AS 34 Appendix A
IAS 34 Interim Financial Reporting
IFRIC 10 Interim Financial Reporting and Impairment.
AS 25 Interim Financial Reporting
Ind AS 36 Impairment Of Assets
IAS 36 Impairment Of Assets
AS 28 Impairment of Assets
Ind AS 38 Intangible AssetsInd As 38 Appendix A
IAS 38 Intangible Assets
SIC 32 Intangible Assets – Website Costs
AS 26 Intangible Assets
Ind AS 37 Provisions, Contingent Liabilities and Contingent AssetsInd AS 37 Appendix A
Ind AS 37 Appendix B
IAS 37 Provisions, Contingent Liabilities and Contingent Assets
IFRIC 5 Rights to Interest Arising from Decommissioning, Restoration and Environmental Rehabilitation FundsIFRIC 6 Liabilities Arising from Participating in a Specific Market – Waste Electrical and Electronic Equipment
AS 29 Provisions, Contingent Liabilities and Contingent Assets
Ind AS 39 Financial Instruments : Recognition and MeasurementInd AsS39 Appendix C
Ind AS 39 Appendix D
Ind AS 39 Appendix E
IAS 39 Financial Instruments : Recognition and Measurement
IFRIC 9 Reassessment of Embedded DerivativesIFRIC 16 Hedges of a net Investment in Foreign OperationIFRIC 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 DraftNow covered in Ind AS 11
IFRIC 15 Agreements for the Construction of Real Estate
No standard
Not covered in Ind ASNot Relevant in India
SIC 7 Introduction of Euro
No standard
KEY DIFFERENCES BETWEEN IND AS AND AS.
IND AS Indian GAAP (AS)
IND AS-1Presentation & Disclosures
•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.
•IND AS–1 requires disclosure of critical judgments made by management in applying accounting policies.
•IND AS-1 prohibits any items to be disclosed as extra-ordinary items.
•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.
•No such requirement under Indian GAAP.
•AS-5 specifically requires disclose of certain items as Extra-ordinary items.
IND AS 1,Presentation of financial statements-classification 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 statements-classification 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-2Inventories
IND AS–2 prescribes same cost formula to be used for all inventories having a similar nature and use to the entity.
There are certain additional requirement in IND AS–2 which are not contained in AS–2 which are as under:
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.
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.
No such guidance
IND AS-7Cash Flow Statements
IND AS 7No exemption.
Bank overdrafts are to be treated as a component of cash/cash equivalents under IND AS–7.
IND AS–7 prohibits separate disclosure of extraordinary items in Cash Flow Statements.
IND AS–7 deals with cash flows of consolidated financial statements.
AS 3 Exemption for SME’s.
Bank Overdraft are considered as financing activity.
AS–3 requires disclosure of extraordinary items.
AS–3 does not deal with cash flows relating to consolidated financial statements.
IND AS-8Prior Period Items and Changes in Accounting Policies
IND AS 8In case of change in accounting policy, IND AS–8 requires retrospective effect to be given by adjusting opening retained earnings.
The definition of prior period items is broader under IND AS–8 as compared to AS–5 since IND AS–8 covers all the items in the financial statements including balance sheet items.
IND AS–8 requires retrospective restatement of prior period figures by restatement of opening balances of assets, liabilities and equity for the earliest period practicable.
AS 5No specific guidance given except for
change in method of depreciation should be considered as change in accounting policy and is accounted retrospectively. The effect of changes in accounting policies are reflected in the current year P&L.
AS–5 covers only incomes and expenses in the definition of prior period items.
AS–5 requires prior period items to be included in the determination of net profit or loss for the current period
New accounting pronouncements that have 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.
Not required.
IND AS-10Events after the reporting period.
IND AS–10 provides that proposed dividend should not be shown as liability.
AS-4 specifically requires such disclosure as the same is mandated by statutory requirement.
IND AS 11 accounting of real estate
Revenue Recognition for real estate developer included in scope of IND AS 11.
AS 7No such guideline.
IND AS-12Income 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 thatfuture taxable profit will be available against which the unused tax losses and tax creditscan 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 thatsufficient future taxable income will be available against which such deferred tax assets can be realised.
Recovery ofRevaluedNon-Depreciable Assets
Measurement of deferred tax liability orasset arising from revaluation is based onthe tax consequences from the sale of assetrather than through use.
No specific guidance
Changes in TaxStatus of an Entity or itsShareholders
Current and deferred tax consequences areincluded in the profit or loss of the periodof change unless the consequences relateto transactions or events recognised outsideprofit or loss either in other comprehensiveincome or directly in equity in the same or a different period.
No specific guidance
IND AS-16Property, Plant & Equipments.
IND AS–16 mandates component accounting.
Depreciation is based on useful life.
Major repairs and overhaul expenditure are capitalized as if it is a separate component.
Under IND AS–16, if subsequent costs are incurred for replacement of a part of 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–10 recommends but does not force component accounting.
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 are expensed. AS–10 provides that only that expenditure which increases the future benefits from the existing asset beyond its previously assessed standard of performance is included in the gross book value, e.g. an increase in capacity.
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 be updated.
Revaluation is an allowed alternative treatment; however, revaluation will have to be done regularly.
Depreciation on revaluation portion cannot be recouped out of 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 dismantling is mandatory.
Estimates of residual value are not updated.
No need to update revaluation regularly.
Depreciation on revaluation portion can be recouped out of revaluation reserve.
No guidance in the standard. However, guidance note on oil and gas issued by ICAI requires capitalization of site restoration cost.
IND AS-17,Leases.
IND AS 17 – Leases
Determining Whether anArrangement Contains a Lease(Notification deferred)
Service Concession Arrangements(Notification deferred)
AS 19 - Leases No guidance.
No guidance.
IND AS 17, Leases - interestin leasehold land
Recognised as operating lease (i.e.Prepayment)
Leasehold land is recorded and classified as fixed assets.
IND AS 17, Leases - initialdirect costs of lessorsfor assets under afinance 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 lease costs incurred by manufacturer or dealer lessors are recognised as expense when selling profit is recognised.
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 manufacturer or dealer lessors are recognised as expense at the inception of the lease.
IND AS 17, Leases - initialdirect costs of lessorsfor assets underoperating 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.
Leaseincentives
Lease incentives (such as rent-free period) are recognised by both the lessor and the lessee as a reduction of rental income and expense, respectively, over the lease term.
No specific guidance.
Evaluatingthe Substance ofTransactions Involving the Legal Form of a Lease.
If a series of transactions involves 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.
No specific guidance.
IND AS-18,Revenue Recognition
Transfer of Assets from Customers
IND AS 18 – Revenue
IND AS–18 requires effective interest method to be followed for interest income recognition.
Under IND AS–18, payments received in advance for goods yet to be manufactured or third party sales cannot be recognized as revenue until such goods are delivered to the buyer.
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.
AS 9 - Revenue Recognition
AS–9 requires interest income to be recognized on a time proportion basis.
AS–9 permits recognition when the goods are manufactured, identified and ready for delivery in such cases.
No guidance
IND AS 18, Revenue -services rendered.
Bartertransactions involvingadvertising services
CustomerLoyalty 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.
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 othersecurities that has a reliable measure offair value and do not involve transactionwith the same counterparty to the bartertransaction.
Award credits are accounted for as aseparate identifiable component of a salestransaction, with the consideration allocated between the awards credit and the other components of 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.
No specific guidance in AS 9. However the guidance note on Accounting for Dot-com companies provides similar guidance for advertising barter transactions.
No specific guidance.
IND AS-19,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 post-employment 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 benefits has to be recognized based on constructive obligation for e.g. Announcement of a formal plan.
Under IND AS there is no concept of deferral.
Termination benefits are dealt with under AS–29, which are required to be recognized based on legal obligation rather than constructive obligation.
VRS expenditure can be deferred under Indian GAAP over 3-5 years.
The Limit on aDefined Benefit Asset, Minimum Funding Requirements and their Interaction.
Addresses when refunds or reductions areregarded as available for recognition of anasset; how funding requirements in futuremay effect the availability of reductions infuture contributions and when minimumfunding requirement may give rise to aliability.
No specific guidance
IND AS-20,Government Grants
Grants relating to assets
In case of non- monetary assets acquired at nominal/concessional rate, IND AS–20 permits accounting either at fair value.
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.
IND AS–20 requires separate disclosure of unfulfilled conditions and other contingencies if grant has been recognized.
AS-12 requires accounting at acquisition cost.
Requires presentation either on reduction of assets method or deferred income method.
AS-12 has no such disclosure requirement
IND AS 20, Government Grants - repayment
Prohibited to be classified as an extraordinary item.
Classified as an extraordinary item.
IND AS-21,Foreign Exchange.
IND AS 21 - The Effects of Changes in ForeignExchange Rates
AS 11 - The Effects of Changes in Foreign Exchange Rates
IND AS 21, Effects of Changes in ForeignExchange Rates- functional andpresentation 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 currencyin which the financial statements arepresented.
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 ofChanges in ForeignExchange Rates -exchange differences
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.
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.
Similar to IFRS, except that exchangedifferences 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 Foreign Currency Translation Reserve both in the separate and consolidated financial statements.
IND AS 21, Effects of Changes in Foreign Exchange Rates - change in functionalCurrency
Change in functional currency is applied prospectively.
Change in reporting currency is not dealtwith in AS 11, though reason for change isrequired to be disclosed.
IND AS 21, Effects of Changes in ForeignExchange Rates -translation in theconsolidated financialstatements
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 othervaluation 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.
IND AS 21, Effects of Changes in ForeignExchange Rates -forward contracts
Accounted for as a derivative.
• Forward contracts not intended for trading or speculation purposes:(i) Any premium or discount arising at the inception of a forward exchange contract is amortised as expense or income over the life of the contract.(ii) Exchange differences on such a contract are recognised in the statement of profit and loss in the reporting period in which the exchange rates change. Exchange difference on a forward exchange contract is the difference between(a) the foreign currency amount of the contract translated at the exchange rate at the reporting date, or the settlement date where the transaction is settled during thereporting 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 fortrading 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 isrecognised.
IND AS-23,BorrowingCosts
IND AS–23 prescribes borrowing costs to be recognized as expense as benchmark treatment. It allows capitalization as an allowed alternative.
IND AS–23 requires disclosure of capitalization rate used to determine the amount of borrowing.
AS–16 mandates capitalization of borrowing costs, where the relevant conditions are fulfilled.
AS-16 does not require such disclosure.
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.
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) 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
IND AS–24 requires compensation to KPMs to be disclosed category wise including share based payments.
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 does not include this relationship.
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.
AS–18 covers relatives of KPMs.
AS–18 read with ASI–23 requires disclosure of remuneration paid to key management persons but does not mandate category wise disclosures.
AS–18 contains no such stipulations.
No concession is provided under IND AS-24 where disclosure of information would conflict with the duties 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.
The definition of “control” under IND AS-24 is restrictive on the count that it does not include control over the composition of board of directors.
IND AS-24 requires disclosure of terms and conditions of outstanding items pertaining to related parties.
IND AS-24 does not prescribe a significant rebuttable presumption of influence.
No exemption.
AS-18 provides exemption from disclosure in such cases
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 composition of Board of Directors in the definition of “control”.
No such disclosure requirement is contained in AS-18.
AS-18 Prescribe presumption of significant influence if 20% or more of the voting power held by any party.
Transactions between state controlled enterprises are not required to be disclosed under AS-18
IND AS-27, Consolidated and separate Financial Statements.
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 IND AS-27, a subsidiary cannot be excluded from consolidation under any circumstances.
Under IND AS -27 while determining 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.
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 AS-21 .a subsidiary can be excluded from consolidation if (1) the subsidiary is acquired and held with an intention to dispose ;(2) the subsidiary operates under severe long term restrictions impairing its ability to transfer funds to parent.
AS-21 is silent.
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 transactions while preparing CFS is Mandatory under IND AS-27.
Under IND AS-27, minority interests has to be disclosed within equity but separate from parent shareholders equity.
Under IND AS 103, goodwill/capital reserve on consolidation is computed on fair values of assets/liabilities.
Under IND AS-27, 3 months’ time gap is 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 made in respect of timing difference arising out of elimination of unrealized profit.
AS-21,gives exemption from following uniform accounting policies if the same is not practicable.
Under AS-21, minority interest has to be separately disclosed from liability and equity of parent shareholder.
Under AS-21, goodwill/capital reserve on consolidation is computed on the basis of carrying value of assets/liabilities.
Under AS-21, six months time gap is allowed.
No deferred tax is to be created on 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.
Requires consolidation of SPV’s when certain criteria’s are met.
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.
No such guidance under AS–21.
IND AS-28,Investments in Associates.
Under IND AS-28, potential voting currently exercisable are to be considered in assessing Significant influence
As per IND AS-28, difference between balance sheet date of investor and associate 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.
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 IND AS-28, it is necessary to subject the investments in associates/joint ventures to the test of impairment.
Under ASI-28 potential voting rights are not considered for determining voting power in Assessing significant influence.
Under AS-23, no period is Specified. Only consistency is mandated.
Under AS-23, if it is not Practicable to make such Adjustments, exemption is given; but appropriate disclosures are made.
Under AS-23, losses are to be recognized to the extent of Investment plus incurred Obligations plus payments made Towards guaranteed obligations.
If decline in value of investment in an associate is permanent, Provision for 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 are made by venture capital organization, mutual funds, unit trusts and similar entities 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 from preparing CFS under IND AS–27. Similar exemption for investor satisfying same conditions as parent.
IND AS–31 permits both proportionate consolidation method and equity 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.
There is no such provision under AS–27 and there is no separate standard on financial instruments.
There is no such specific provision under AS–27.
AS–27 permits only proportionate consolidation method.
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 AS-33,
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.
IND AS-33 does not deal with treatment of application money held pending allotment.
IND AS -33 requires disclosure of anti dilutive instruments even though they are ignored for the purpose of computing dilutive EPS
IND AS-33 does not require disclosure of face value of share.
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.
Under AS-20 application money held pending allotment should be included in the computation of diluted EPS.
AS-20 does not mandate such disclosure.
Disclosure of face value is required under AS-20.
IND AS-34,Interim FinancialReporting - PrimaryLiterature
IND AS 34 - Interim Financial Reporting
AS 25 - Interim Financial Reporting
AS 25 is similar to IND AS 34 and there are no material differences between the two standards
IND AS 34, Interim FinancialReporting - Accountingpolicies
Same accounting policies as 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.
Similar to IFRS
IND AS-36,Impairment of Assets
Ind AS 36Impairment losses on goodwill are not subsequently reversed.
Goodwill acquired on business combination is allocated to each CGU based on the benefit it would enjoy from the synergies of the combination.
AS 28Impairment losses on goodwill are subsequently reversed only if the external event that caused impairment of goodwill no longer exists and is not expected to recur.
Goodwill is allocated to CGU’s based on bottom-up and top-down tests.
IND AS-37,Provisions,ContingentAssets and Contingent Liabilities
IND AS-37 requires discounting of Provisions.
IND AS–37 requires provisioning on the basis of constructive obligation on restructuring costs.
IND AS–37 requires disclosure of Contingent Assets in Financial Statements.
IND AS–37 provides certain basis and statistical methods to be followed for arriving at the best estimate of the expenditure for which provision is recognized.
IND AS–37 defines obligation but does not make a distinction between present obligation and possible obligation.
IND AS 37 gives an exception to this principle ie. Losses related to onerous contract.
AS–29 prohibits discounting.
AS–29 requires recognition based on legal obligation.
AS–29 prohibits it.
AS–29 does not contain any such guidance and relies on judgment of management.
AS–29 defines present obligation and possible obligation as well.
AS 29 states that future operating losses upto the date of restructuring are not included in a provision.
IND AS-38,
Intangible Assets
There is no presumption under IND AS–38 as regards useful life of an intangible asset.
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.
IND AS – 38 does not require any impairment testing if there are no indications of impairment.
Under AS–26, there is a rebuttable presumption that the useful life of intangible assets will not exceed 10 years.
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.
AS – 26 requires test of impairment to be applied even if there is no indication of that 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 Asset is ‘held for sale’ then amortization should be stopped.
Under IND AS – 38, R&D expenditure that relates to an in-process R&D project acquired separately or in a business combination shall be accounted as Intangible Asset.
Under IND AS–38, Revaluation Model is allowed for accounting Intangible Asset provided active market exists.
Web site costs shall be recognised separately.
There is no such stipulation under AS–26.
AS–26 is silent on this.
AS–26 does not permit revaluation model.
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.
InvestmentProperty – measurement
Investment properties can be measured using the cost model.
Classified as long-term investments and measured at cost less impairment.
IND AS-102,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 Securitiesand Exchange Board of India (EmployeeStock Option Scheme and Employee StockPurchase Scheme) Guidelines, 1999.
Share-basedpayment - recognition
Recognise as an expense over the vesting period.Goods and services in a share-based 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 equity-settled share-based payment transaction or a liability if these were acquired in a cash-settled share-based payment transaction.
No guidance.
Share based payment -measurement
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.
Different valuation techniques may be Under the intrinsic value method, the cost applied.
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 share-based compensation plans. The guidance note recommends the use of the fair value method.
The fair value is estimated using an option-pricing model (for example, the 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,BusinessCombinations
Business combinations are dealt with under IND AS 103.
IND AS 103 allows only purchase method. Option of pooling method given under IND AS–22 has been withdrawn.
IND AS 103 requires valuation of assets and liabilities at fair value Even contingent liabilities are fair valued.
IND AS 103 requires Goodwill to be tested for impairment.
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
Business combinations are dealt with under various standards such as AS-14, AS-21, AS-23, AS-27 and AS-10.
AS-14, allows both Pooling of interest method and Purchase method. Pooling method is allowed subject to certain conditions.
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. 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.
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 operationsA discontinued operation is a component of an entity that either has been disposed or is classified as held for sale.
AS 24 – Discontinuing OperationsAS 10 - Accounting for Fixed AssetsThere is no concept of discontinued operation but it deals with discontinuing operations.
IND AS 105, Non-currentassets 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 ishighly probable.
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.
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.
IND AS 105, Non-currentassets 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 formalplan and announcement of the plan.
The sale should be expected to qualify for recognition as a completed sale within one year from the date of classification with certain exceptions.
The existing AS 24 does not specify any time period in this regard as it relates to discontinuing operations.
IND AS-108,Segment Reporting
IND AS 108, OperatingSegments -determination ofsegments
IND AS 108 - Operating 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 - Segment Reporting
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, profit/loss, assets and liabilities in relation to Associates & Joint Ventures in consolidated financial statements.
Encourages reporting of vertically integrated activities as separate segments but does not mandate the disclosure.
Provides that a business segment only if, inter alia, majority of its revenue is earned from sales to external customers.
If a reportable segment ceases to meet threshold requirements, then also it remains reportable for one year if the management judges the segment to be of continuing significance.
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 is silent on the aspect of treatment is consolidated financial statement.
AS–17 does not make any distinction between vertically integrated segment and other segment.
AS–17 does not contain any such stipulation.
Under AS–17, this is mandatory irrespective of the judgment of management.
AS–17 requires only disclosure of the nature of the change and financial effect of the change, if reasonably determinable. .
IND AS 101First Time Adoption
Detail first time adoption rules exist.
No first time adoption rules.
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
S R 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 1 Presentation of Financial Statements
S R No. Particulars Ind AS requirement IFRS requirement
1. 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 thatoption 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 beenremoved 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 2 Inventories
S R No. Particulars Ind AS requirement IFRS requirement
1. 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 7 Statement of Cash Flows
S R No. Particulars Ind AS requirement IFRS requirement
1. 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 11 Construction Contracts
IND AS 17 – Leases
S R No. Particulars Ind AS requirement IFRS Requirement
1. Land & Building – As Investment Property
Relevant paragraphs of IAS 17 dealing with measurement of the 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.
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
S R 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 long-term 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
S R No. Particulars IND AS Requirement IFRS Requirement
1. Non-Monetary Govt. Grants Measurement Options
Requires measurement of suchgrants only at their fair value.
IAS 20 gives an option to measure non -monetary government grants either attheir 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.
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.
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.
Ind AS 21 The Effects of Changes in Foreign Exchange
S R No. Particulars Ind AS requirement IFRS requirement
1. 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
S R No. Particulars IND AS Requirement IFRS Requirement
1. Guidance for Exchange Difference Treatment
Provides additional guidance on foreign exchange difference inclusion in the borrowing cost .
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 S R 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
S R No. Particulars Ind AS requirement IFRS requirement1. Exemption not
provided in Ind AS 27Exclusion 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
S R 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
S R No. Particulars Ind AS requirement IFRS requirement
1. Additional disclosure under Ind AS 29
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
S R No. Particulars Ind AS requirement IFRS requirement1. 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
S R No. Particulars Ind AS requirement IFRS requirement1. 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 ShareS R 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 financialstatements 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 fromprofit 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
S R No. Particulars IND AS Requirement IFRS Requirement4. 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 singlestatement 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 apart 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
S R No. Particulars IND AS Requirement IFRS Requirement1. Investment
Property - Impairment
Ind AS 36 does not specify such requirement, as Ind AS 40 permits the cost model only.
Paragraph 2(f) of IAS 36 states that the standard shall not be applied foraccounting for the impairment of the investment property that is measured at fair value.
IND AS 38 – Intangible Assets
S R No. Particulars IND AS Requirement IFRS Requirement1. Intangible through
Govt. Grant - Recognition
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 governmentgrant, 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 andMeasurement
S R No. Particulars IND AS Requirement IFRS Requirement1. Fair Value for
Financial LiabilitiesA provisio has been added in Ind AS 39 that in determining the fair value of thefinancial 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
S R 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 StandardsS R 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 specificrequirement.
Ind AS 101 First-time Adoption of Indian Accounting Standards contd.S R 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 de-recgonition 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.S R No Particulars Ind AS requirement IFRS requirement
6. Inclusion/modification 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/modification 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/modification 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 long-term 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 first-time 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/modification 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/modification 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/modification 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/modification 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 - Non-current 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
S R No. Particulars Ind AS requirement IFRS requirement1. Bargain
purchase gain on business combinations
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.
2. Business combinations of entities under common control
Specific guidance provided in Appendix C – pooling of interest method required to be followed in such cases
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 Ind-AS, 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.
