Difference between IFRS and IND AS

• Accounting & Bookkeeping
• ||
• December 23, 2021

International financial reporting standards (IFRS) are a deposit of accounting regulations for the financial statements of public companies that are planned to make them logical, crystal clear and easily comparable around the world. Before IFRS, every country had distinct generally accepted accounting principles (GAAP) for the occupations to prepare financial statements in their own country. As a result, it was becoming hard to undertake cross-border transactions with globalization because it was tough to understand financial statements prepared in different GAAP. To bring concinnity in the accounting language, the international accounting standards committee (IASC) started developing the international accounting standards (IAS) in 1973. The international accounting standards board (IASB) took across the role from IASC in July 2000. Since then, a set of common reporting standards has been referred to as IFRS. As a result, IFRS has picked up some foothold over the most recent few years, which is indicated by the way that around 144 out of 166 jurisdictions of the world have acquired IFRS for all or most domestic publicly accountable entities.

IND AS stands for Indian accounting standards and are converged standards for international financial reporting standards (IFRS). In simple terms, Indian accounting standards came into existence to meet the requirements of IFRS. Indian accounting standards (IND AS) were issued by the central government of India under the administration and command of the accounting standards board (ASB) of ICAI and in consultation with the national advisory committee on accounting standards (NACAS).

IND AS has maintained some general differences with the international financial reporting standards (IFRS):

1. IND AS uses terms different from international financial reporting standards (IFRS). For example, the term “balance sheet” is used instead of “statement of financial position”, and the term “statement of profit and loss” is utilized rather than “statement of comprehensive income.” The words “approval of the financial statements for the issue” is used instead of “authorization of the financial statements for the issue” in the milieu of financial statements considered for events after the reporting period.

2. Under international financial reporting standards (IFRS) 1, transitional provisions in other international financial reporting standards (IFRS) do not appeal to a first-time adopter’s transition to international financial reporting standards (IFRS) unless otherwise permitted by international financial reporting standards (IFRS). Indian accounting standards (IND AS) do not contain transitional provisions of corresponding IFRS/IND AS standards.

Points of difference between IFRS (international financial reporting standards) and IND AS (Indian accounting standards) are as follows:

At AJSH, we assist our clients in bookkeeping, payroll, auditing, taxation, secretarial compliances, and preparation of financial statements ensuring compliance with applicable accounting standards. If you have any questions or wish to know more about IFRS and IND AS, kindly contact us.