Question

Key Difference Between Indian Accounting Standards And International Accounting Standards Is?

Answer 1

Answer:

The most important differences between IFRS and Indian GAAP are mentioned –

IFRS is a much broader accounting standard in terms of scope and application. IFRS has been used by 110 countries already. Indian GAAP is quite narrow and is only applicable for the Indian

For IFRS, the companies may need to prepare consolidated financial statements if they don’t fall under the exemption of IAS-27 (Para 10). As per Indian GAAP, a company doesn’t need to prepare consolidated statements.

As per IFRS, the companies need to disclose as a note that they’re complying with the IFRS. But in the case of Indian GAAP, there’s no need to a statement disclosing that the company is complying with Indian GAAP.

Revenue is always considered as the fair value of consideration receivable or received in the case of IFRS. As per Indian GAAP on the other hand, revenue is considered when the companies charge for products/services and also the benefits companies receive by using their resources.

As per IFRS, if the company isn’t using the functional currency, then the assets and liabilities of the company would be converted by the exchange rate. On the other hand, Indian GAAP doesn’t require an exchange rate since it’s only applicable for Indian companies.