IFRS Vs Indian GAAP - Part 1

There are lots of minor and major differences between IFRS and Indian GAAP. Today, I will explain its part and I will focus on three major parts of differences of IFRS and Indian GAAP. By understanding it, you will get following benefits.

1. Use it 

Whether you are accountant or commerce student or doing CA. All will be interested to prepare financial statements. After coming IFRS, international pressure is to adopt. Still, India is using Indian GAAP due to many differences. So, in future, if IFRS will apply on Indian accounting system, it will be easy to you to adopt your accounting system fastly as per IFRS.

2. For Knowledge

Whether you use it or not but to know is better. Because if you are preparing competitive exam. or if anybody ask you question like me "What is the difference between IFRS and Indian GAAP" you will increase your confidence because you have read it and you understand the concept. Otherwise, you will be disappointed to give best answer of this question.

So, come and understand it

1. Difference in Preparation of Balance Sheet under a Specific Format

As per Indian GAAP

As per Indian GAAP, company will make its balance sheet format as per New Indian Company Law 2013 under its section 129. Indian GAAP accepts this very clearly. Every company has to show its all assets and liabilities under given specific format not use as per board management desires.

As per IFRS 

As per IFRS, there is not any specific format of company's balance sheet  and allow to follow any specific company's law.

2. Difference for showing Preference Share Capital in balance Sheet

As per Indian GAAP

Because Indian GAAP has accepted the format of balance sheet of company. In the company's balance sheet format, we see preference share capital in Share Capital Section. It means, Indian GAAP allows it to show like that .

As per IFRS 

IFRS does not allow to show preference share capital in Share capital section of balance sheet.

Logic : As per IFRS, preference share is not capital but fixed loan because there is fixed rate of dividend on bought pref. shares by share holders. So, it will be shown under loan section of balance sheet.

3 Difference of Showing Changing in Equity in Annual Financial Statements

As per Indian GAAP

Indian GAAP does not allow to make a separated changing in equity statement because there is not format as per company law and second all changes will show under balance sheet in Share capital section. All movement of equity share capital will show in Share Capital and Surplus and Reserve Section. So, no need to prepare extra statement. Now, three are main in India as per Indian GAAP. One is balance sheet, second is income statement and third is Cash flow statement.

As per IFRS 

As per IFRS, it is compulsory to prepare changing in equity capital in extra statement. This statement will show the movement of equity capital. So, IFRS will allow to prepare four annual financial statements

one is financial position statement, second is income statement, third is cash flow statement and four and final is changing in equity statement. Hope, you have understood it.

Related Resource : Online Accounting Course 







access account accountant Accounting accounting definitions accounting ebook Accounting education accounting procedure accounting process outsourcing Accounting Software advance advertising africa Amalgamation amendments announcements Annuity assets audit auditing Australia B.Com. balance sheet bank Bank reconciliation banking basic accounting BBA benefits best bill black money blog bloggers book keeping bookkeeping Branch Accounting - full tutorial budget Budget variance business businessman CA calculator canada capital capital budgeting career cash cash book cash flow statement Chiense children china class coaching coins college commerce commerce students company computer computer accounting conference Contact vinod kumar Control Your Spending corporate accounting cost cost accounting cost center cost centre CPA credit credit card cs currency data Debit and credit debit cards debt debtor degree depletion depreciation Diwali Messages documents dollar domain Downloads Dubai e-accounting earning education Education Loans email employee EPF ERP euromoney examination excel excise duty expenses facebook factor of loan fans feature fifo FII fiji finacle finance Financial financial accounting fire insurance flickr flow forensic forex formula france fraud free fun function fund GAAP GDP gdr germany gold goodwill goodwill accounting google google apps Google Adsense google apps google base google buzz google calendar Google docs google finance google fusion tables google talk govt. GST guide health Hindi Hindi Language history holding company How to treat FBT in Tally 9 HRA ICAI ICAWI ICICI Bank IFRS income income statement Income Tax India indian railway Indonesia inflation inflation accounting infographics information inspiration insurance insurance accounting Intangible interest international Internet Introduction of Tally 9 inventory investment investment in Shares invoice IT Japan Job costing journal entries Journal Entries eBook Help Kalculate keyboard kindle kuwait laptop law LBT learning lease lecture ledger leducation Leverage Analysis liabilities lifo linkedin loan logical point loss loss of profit M.Com. m.phil malaysia management accounting manual accounting manufacturing account market marketing mastercard material MBA MCA media migration mobile money ms word ms. excel multi currency in tally 9 Multicurrency Accounting mutual fund national security new and sacrifice ratio new york times new zealand news NGO nonprofit-accounting North Georgia Mountains NPV NSE odbc office oman online application online accounting Online Accounting Course otcei pakistan parents Partnership pay pal pdf Personal Finance pie chart pie chart of income pnb podcast ppf presentation price privacy policy prize money prof. vinod kumar profit profit and loss account project management provision purchase puzzles quickbooks Quote quotes quotes of svtuition rating agency ratio analysis RBI readers real estate rectification of errors remote control reports reserves responsibility accounting retirement revenue Revenue reserves review risk rupees salary sale saudi arabia saving sbi scholarship school SEBI security service tax share share trading Shares shri lanka singapore sms social accounting society solution South Africa stock stock exchange structure student students study subsidiary company svtuition swiss bank tally tally 9 Tally 7.2 Tally 9 Tally.ERP 9 tanzania tax Tax Accounting TDS teacher teaching technology test testimonial testimonials thailand tips trading trading on equity transaction trend trial balance truthfulness tuition twitter UAE UGC - NET Commerce UK United Arab Emirates university usa valuation VAT Video Voucher and vouching Wealth wikipedia working capital youtube
Accounting Education: IFRS Vs Indian GAAP - Part 1
IFRS Vs Indian GAAP - Part 1
Accounting Education
Not found any lecture VIEW ALL Continue reading Reply Cancel reply Delete By Home PAGES Lectures View All RECOMMENDED FOR YOU Category ARCHIVE SEARCH ALL Lectures Not found any lecture match with your request, please help to write it and send it to our email at vinod@svtuition.org for making this website free accounting and finance encyclopedia. Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS CONTENT IS PREMIUM Please share to unlock