Is IFRS same as Ind AS?

It is used in around 144 countries and is regarded as one of the most popular accounting standards. IND AS is also known as Indian Accounting Standards or Indian version of IFRS….Difference between IFRS and IND AS.

In which year IFRS is initiated in India?

While a phased convergence of Indian Standards with the IFRS was initiated in April 2010 with a target date of April 2015 for full implementation, slow progress has led the Ministry of Corporate Affairs (MCA) to abandon this timeline in favor of a new roadmap for convergence that was announced last month.

Is GAAP applicable in India?

Indian GAAP primarily comprises 18 accounting standards (AS) issued by the Institute of Chartered Accountants of India (ICAI). Companies listed on the stock exchanges also need to comply with a few other accounting rules such as preparing cash flow statements and accounting for stock-based compensation.

How are accounting standards framed in India?

Since 1977 after the government passed a statute, the Accounting Standard Board (ASB) a committee of the ICAI has been responsible for the formulation of accounting standards in India.

Why IFRS is needed in India?

Purpose of IFRS: As per Indian Generally Accepted Accounting Principles (I-GAAP), the revenues are computed net of excise and duties, and the current investment is valued at cost or market value. The main purpose of implementing IFRS is that it shall lower the cost of capital and bring in new opportunities.

What are the benefits of IFRS in India?

– Reflects true value of acquisitions. In Indian GAAP, business combinations, with few exceptions, are recorded at carrying values rather than fair values of net assets acquired. – New opportunities will open up for corporates. Benefits from the adoption of IFRS will not be restricted to Indian corporates. – Management compensation and debt covenants.

Do we use IFRS Standards in India?

IFRS are the globally accepted accounting standards and interpretations adopted by the IASB. An upcoming economy on world economic map, India, too, decided to converge to International Financial Reporting Standards (IFRS). In India, ICAI has decided to adopt the IFRS by April 2011.

Does India use IFRS?

India has not adopted IFRS Standards. India has adopted Indian Accounting Standards (Ind AS) that are based on and substantially converged with IFRS Standards as issued by the IASB . The modifications to IFRS Standards as issued by the IASB are explained later in this profile.

Which is better GAAP or IFRS?

At the conceptual level, IFRS is considered more of a principles-based accounting standard in contrast to GAAP, which is considered more rules-based. By being more principles-based, IFRS, arguably, represents and captures the economics of a transaction better than GAAP.

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