Difference between IFRS and Ind AS
India has chosen a path of International Financial Reporting Standards (IFRS) convergence rather than adoption. Hence, Ind AS is primarily based on the IFRS issued by the International Accounting Standards Board (IASB). However, there are certain carve-outs from the IFRS. There are also certain general differences between Ind AS and IFRS:
The transitional provisions given in each of the standards under IFRS have not been given in Ind AS, since all transitional provisions related to Ind AS, wherever considered appropriate, have been included in Ind AS 101, First-Time Adoption of Indian Accounting Standards, corresponding to IFRS 1, First-Time Adoption of International Financial Reporting Standards.
Different terminology is used in Ind AS when compared to IFRS, e.g. the term ‘balance sheet’ is used instead of ‘statement of financial position’ and ‘statement of profit and loss’ is used instead of ‘statement of comprehensive income’.
The Indian Accounting Standard and making a first-time financial report using the same requires high-quality data that can be processed into valuable information. The Interim Financial Reports for the same must also have the same features that are present in the overall report. The following features are warranted:
- The overall periods of the report must be easy to read. It should also be comparable to other statements that provide more or less the same information.
- The reports must have enough provisions for a strong starting point for accounting in compliance with the pointers and directions set by the Indian Accounting Standards.
- The system can be produced in such a way so that its costs do not go above the benefits.
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