ifrs,us gaap and indian gaap
TRANSCRIPT
Differences
IFRS, US GAAP and INDIAN GAAP
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PGDM batch-A
Group-2(FAR)
SUBJECT IFRS US GAAP INDIAN GAAPHistorical cost or fair valuation
Uses historical cost but Intangible assets, property, plant and equipment and investment property may be revalued to fair value
No revaluations except for certain types of financial instruments
Uses historical cost but property, plant and equipment may be revalued to fair value
Cash flow statements- exemptions
No exemptions Limited exemptions for certain investment entities and defined benefit plans
Exemptions for SMEs having turnover or borrowings below certain threshold.
Inventories FIFO or weighted average method used. LIFO prohibited.
Similar to IFRS, use of LIFO permitted.
Similar to IFRS except capitalisation of distribution cost is not allowed.
Segment reporting-accounting policies
Internal financial reporting policies apply.
Similar to IFRS. Group accounting policies or entity accounting policies apply.
Contingencies Disclose unrecognized possible losses and probable gains.
Similar to IFRS. Similar to IFRS, except that contingent gains are neither recognized nor
disclosed.Biological assets
Measured at fair value less estimated point of sale costs, with changes in valuation recognized in the income statement.
Not specified, generally historical cost used.
Not specified, generally historical cost used.
Depreciation Allocated on a systematic basis to each accounting period over the useful life of the asset.
Similar to IFRS. Similar to IFRS, except where the useful life is shorter, depreciation is computed by applying a higher rate.
Disclosures about associates
Detailed information on associate’s assets, liabilities, revenue and profit/loss is required.
Similar to IFRS. Certain disclosures are required for all associates; detailed information not required.
Types: acquisitions or mergers
All business combinations are acquisitions, thus the purchase method is the only method of
Similar to IFRS. No comprehensive accounting standard on business combinations.
accounting that is allowed.
Revenue recognition
Based on several criteria, which require the recognition of revenue when risks and rewards and control have been transferred and the revenue can measured reliably.
Similar to IFRS in principle, although there is extensive detailed guidance for specific types of transactions that may lead to differences in practice.
Similar to IFRS conceptually, although several differences in detail.