key differences

8/8/2019 Key Differences

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Preface

India, in 2011, joins the global accounting revolution: International Financial Reporting

Standards.ConvergencewithIFRSisnotjustaboutswitchingoverfromonesetofaccounting&

reporting standards to another. It takes the description of a revolution because conceptualdifferencesareexpected,asevidencedinthispublication.

Convergence ismore about a complete business and financial strategy to adopt international

standards which is expected to be a long drawn process involving investment of time andresources.WebelievethatnowistherighttimetogearupforIFRS.

ThisBDOIndiapublicationisanendeavortoprovideaconcisesummaryofthemeasurementdifferences that exist between IFRSand IndianGAAP.Weadvise readers to consult all the

relevantaccountingstandardsandapplicableregulations.

WeatBDOIndiaarecommittedtohelpyoumigratetoIFRSassmoothlyaspossible,andlookforwardtoteamingwithyouonthischallengingbutexcitingjourney.

GlobalKnowledgeServices

BDOIndia

701, Leela Business Park,Andheri Kurla Road, Andheri (East),Mumbai 400059

[email protected]: 6672 9999 / 6639 1101D: 6672 9606 / 6672 9617


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Thispublicationcontainsinformationinsummaryformandisthereforeintendedforgeneralguidanceonly.Itisnot

intendedtobeasubstitutefordetailedresearchortheexerciseofprofessionaljudgement.NeitherBDOIndianor

anymemberoftheorganisationcanacceptanyresponsibilityforlossoccasionedtoanypersonactingorrefraining

fromaction asa result ofanymaterial inthispublication.We recommend you seek professional advice before

takingactionsonspecificissues.


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IFRS IndianGAAP

CostV/sFairValue

Generally uses historical cost, but intangible

assets, property, plant and equipment (PPE)

andinvestmentpropertymaybemeasuredat

fairvalue.Derivatives, certain other financial

instruments and biological assets must be

revalued.

Uses historical cost, but Fixed Assets may be

revalued.

Certain derivatives are carried at fair value. No

comprehensive guidance on derivatives and

biologicalassets.

PresentationofFinancialStatements

ComponentsofFinancialStatements

IAS 1 provides overall requirements for the

presentationoffinancialstatements,guidanceon their structure, and the minimum

requirements for their content. Although it

does not prescribe a particular format, itprescribes the components of the financial

statementsthat togetherwouldbeconsidered

asacompletesetoffinancialstatements.

1. StatementofFinancialPosition(Balance

sheet),

2. Statement of Comprehensive Income /Income Statement (Profit and Loss

Account),

3. StatementofChangesinEquity(SOCIE),4. StatementofCashFlows,5. Notes comprising a summary of

significantaccounting policiesand otherexplanatoryinformation,and

6. StatementofFinancialPositionasatthebeginning of the earliest comparativeperiod when an entity applies an

accounting policy retrospectively or

makes a retrospective restatement of

itemsinitsfinancialstatements,orwhenit reclassifies items in its Financial

Statements

CompaniesActrequirespreparationof:

1. BalanceSheet,2. ProfitandLossAccount,and3. NotestoAccounts

As per AS 3 Cash Flow Statements Level 1enterprises are required to prepare a Cash Flow

Statementusingthedirectorindirectmethod.

SEBImandatestheuseofindirectmethodforlistedcompanies.

The insurance regulator IRDA requires insurancecompanies to prepare the Cash Flow Statement

usingthedirectmethod.

The conceptofSOCIEdoesnotprevail;however,

they are represented by the captions share capital

andreservesandsurplusinthebalancesheet.

StatementofFinancialPosition(BalanceSheet)Format

A current/non-current presentation of assets

and liability is used, unless a liquiditypresentation provides more relevant and

reliable information. Certainminimum items

arepresentedonthefaceofthebalancesheet.

Accountingstandardsdonotprescribea particular

format;certainitemsmustbepresentedonthefaceofthebalancesheet.Formatsareprescribedbythe

CompaniesActandotherregulationslikeBanking

Regulation Act, Insurance Regulatory and


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IFRS IndianGAAP

DevelopmentAuthorityActetc.

StatementofComprehensiveIncome(ProfitandLossAccount)Format

Presentedinoneoftwoformats(functionornature).Certainminimumitemsarepresented

onthefaceoftheincomestatement.

Underthenatureofexpensemethodexpenses

are aggregated in the income statement

according to their nature, (for example

depreciation,purchasesofmaterials,transportcosts,wages and salaries, advertising costs),

and are not reallocated amongst various

functionswithintheenterprise.

The function of expense or cost of sales

methodclassifiesexpensesaccordingtotheirfunction aspart ofcost of sales, distribution

oradministrativeactivities.

Does not prescribe a standard format; but certainincome and expenditure items are disclosed in

accordance with accounting standards and the

CompaniesAct.

Industry-specificformatsareprescribedbyindustry

regulations.

StatementofComprehensiveIncome-Structure

Entitieshavetheoptiontopresenteither:

1. Single Statement of ComprehensiveIncomeor

2. Twoseparatestatements-a. An Income Statement displaying

componentsofprofitorloss;and

b. AStatementofComprehensiveIncomebeginning with profit or loss anddisplaying components of other

comprehensiveincome.

ComponentsofOtherComprehensiveIncome

include:

a. Changesinrevaluationsurplusb. Actuarial gains and losses on defined

benefitplans

c. Gainsorlossesarisingfromtranslatingthe financial statements of foreignoperations

d. Gains and losses on remeasuringavailable-for-salefinancialassets

e. The effective portion of gains andlossesonhedginginstrumentsinacash

flowhedge.

No comprehensive income statement is prepared.

OnlyaProfitandLossAccountisprepared.


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IFRS IndianGAAP

StatementofChangesinEquity(SoCIE)

Statementshowscapitaltransactionswiththe

owners, the movement in accumulated

profit/loss and a reconciliation of all other

componentsofequity.

Noseparatestatementisrequired.

CashFlowStatements-BankOverdraft

Bank Overdraft repayable on demand istreatedasCashandCashEquivalentsifthey

form an integral part of the entitys Cash

Management

AS3CashFlowStatementsdoesnotprovideanyguidance on Bank Overdrafts. However, Bank

overdraft are treated as FinancingActivities as a

normalpractice

CashFlowStatements-Dividend/Interest

There is no guidance for classifying cash

flows arising due to Dividend & Interest.

They may be classified as Operating,FinancialorInvestingactivities.

Interest and Dividends paid are classified as cash

flows from Financing Activities. Interest and

DividendreceivedareclassifiedascashflowsfromInvesting Activities. Only in case of a financial

enterprise, interest paid, interest received anddividendreceivedshouldbeclassifiedasoperating

activities.

EventsaftertheBalanceSheetDateNonadjustingevents

IFRS requires disclosure of significant non

adjusting event in the notes to the Financial

Statements

IndianGAAPrequiresdisclosureofsucheventsin

thereportoftheapprovingauthority.

DisclosureofcriticaljudgementsIAS 1 requires disclosure of criticaljudgements and estimates made by

managementinapplyingaccountingpolicies

ThereisnosuchspecificdisclosurerequirementinAS1orScheduleVI.

ConsolidatedFinancialStatements

IFRS considers Consolidated Financial

Statements as theGeneralPurpose Financial

Statements.

It is not mandatory to prepare Consolidated

Financial Statements underAS 21.SEBI requires

from listed companies to submit ConsolidatedFinancialStatements.BankingCompaniesarealso

required to prepare Consolidated Financial

Statements.

ExtraordinaryItems

Disclosure as extraordinary items either on

the face of the income statement or in thenotesisprohibited.

Aredefinedasincomeorexpensesthatarisefrom

eventsortransactionsthatareclearlydistinctfromthe ordinary activities of the enterprise and,

therefore, are not expected to recur frequently or


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IFRS IndianGAAP

regularly.

The nature and the amount of each extraordinaryitemshouldbeseparatelydisclosedinthestatement

ofProfitandloss.

OverrideofTrueandFairView

In extremely rare circumstances when

managementconcludes thatcompliancewith

arequirementofaStandardorInterpretationwould be misleading, and therefore that

departurefromarequirement isnecessaryto

achieve a fair presentation, an enterpriseshoulddisclose:

(a) that management has concluded that the

financial statements fairly present theenterprises financial position, financial

performanceandcashflows;

(b)thatithascompliedinallmaterialrespectswith applicable IAS except that it has

departedfromaStandardinordertoachievea

fairpresentation;(c)theStandardfromwhichtheenterprisehas

departed, the nature of the departure,

including the treatment that the Standard

wouldrequire,thereasonwhythattreatmentwouldbemisleadinginthecircumstancesand

thetreatmentadopted;and(d) the financial impact of the departure onthe enterprises net profit or loss, assets,

liabilities, equity and cash flows for each

periodpresented.

Theoverridedoesnotapplywherethereisa

conflict between local company law andIFRS; in such a situation, the IFRS

requirementsmustbeapplied.

Fair presentation requires compliance with the

applicable requirements of the Companies Act,

1956andtheotherregulatoryrequirementsandtheapplication of thequalitativecharacteristicsof the

AccountingStandardsFramework.

RestatementofFinancialStatements

ChangesinAccountingPolicy

Comparative years information is restatedand theamountoftheadjustmentrelating to

prior period is adjusted against opening

balances of retained earnings of the earliest

prior period presented, unless specificallyexempted.

Restatementisnotrequired.Theeffectofchangesis included in currentyear incomestatement. The

impactofchangeisdisclosed.


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IFRS IndianGAAP

Correctionoferrors

Theopeningbalancesofassets,liabilitiesand

equity for theearliest prior period presented

arerestated.

Restatement is not required. The effect of

correction is included in current years income

statementwithseparatedisclosures.

Property,PlantandEquipments(PPE)

ComponentAccounting

IAS 16 mandates component accounting.

Under this approach, each major part of an

item ofpropertyplant andequipmentwith acostthatissignificantinrelationtothetotal

costoftheitemisdepreciatedseparately.

AS 10 does not require full adoption of the

componentapproach. Itnearlyrecognizesthesaid

approach in one paragraph by stating thataccounting for tangible fixed assets may be

improved if total cost thereof is allocated to its

variesparts.

CostofPPE

Historicalcostor revaluedamountsareused.Regular valuationsofentireclassesofassetsare required when revaluation option is

chosen.

Historicalcostisused.Revaluationsarepermitted,however, no requirements on frequency ofrevaluation. Revaluation for the whole class of

assetsisnotrequired.

DepreciationonRevaluationofProperty,PlantandEquipment

Depreciation on revalued portion cannot be

recoupedoutofrevaluationreserve

Depreciation onrevalued portioncanberecouped

outofrevaluationreserve

UsefulLifeofPPE

Depreciationtobecalculatedbasedonuseful

life.

Depreciation calculation is based on higher of

usefullifeoftheAssetsorScheduleXIVrates

Assetdismantlement,removalandrestorationcosts

The cost of an item of property, plant and

equipment includes the present value of thecosts of its dismantling, removal or

restoration,theobligationforwhichanentity

incursasaconsequenceofinstallingtheitemand/or using the item during a particular

period for purposes other than to produce

inventories during that period. Change in

decommission or restoration obligations aregenerallyadded/deductedto/fromtherelated

asset.

Appendix to AS 29 Provisions, Contingent

Liabilities andContingentAssets requires any thebest estimate of an obligation being removal and

restorationcostsaretobeincludedinthecostofthe

asset and a provision is to be recognised for thesame.Nodiscountingrequired.

MajorInspectionCost

Cost of major inspectionsand overhauls are

recognisedinthecarryingamountofproperty

Costs of major inspection are expensed when

incurred.


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IFRS IndianGAAP

plantandequipment.

RevaluationReserveofProperty,PlantandEquipment

RevaluationReserveisdirectlytransferredtoRetainedEarningsonderecognition.

Revaluation Reserve is transferred to IncomeStatementonderecognition.

ReviewofUsefulLife,ResidualValue,DepreciationMethod

IAS 16 mandates review of useful life,residual value and depreciation method at

eachyearend.

AS10doesnotspecifyanysuchrequirement.

BiologicalAssets

Measuredatfairvaluelessestimatedpointof

sale costs, with changes in valuation

recognizedintheIncomeStatement.

Notspecified.GenerallyHistoricalcostused.

IntangibleAssetsValuationModels

Cost Model and Revaluation Model: An

entity shall choose either the cost model orthe revaluation model as its accounting

policy.

Cost Model only: After initial recognition, an

intangibleassetshouldbecarriedatitscostlessanyaccumulated amortisation and any accumulated

impairmentlosses.Revaluationofintangibleassets

isprohibited.

Activemarket

Revaluation model is permitted only wherethere is an activemarket for the underlying

intangibles.

Revaluationisprohibited.

LifeofIntangibleAssets

Anentityshallassesswhethertheusefullife

ofanintangibleassetisfiniteorindefinite.If

finite,thelengthof,ornumberofproductionorsimilarunitswouldconstituteusefullife.

Anintangible asset shall be regarded by theentityashavinganindefiniteusefullifewhen,

based on an analysis of all of the relevant

factors, there is no foreseeable limit to the

period over which the asset is expected togeneratenetcashinflowsfortheentity.

There is a rebuttable presumption that the useful

lifeofanintangibleassetwillnotexceedtenyears

fromthedatewhentheassetisavailableforuse.

Reviewofresidualvalue

An entity is required to review the residual

valueoftheintangibleassetsateachyearend

Nosuchrequirement.


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IFRS IndianGAAP

and give the effect accordingly. In case

revisedresidualvalueexceedscarryingvalue

nodepreciationwillbechargedagainstthose.

Intangiblesacquiredasapartofbusinesscombination

Ifanintangibleassetisacquiredinabusiness

combination,thecostofthatintangibleassetis its fair value at the acquisition date. The

intangible is recorded by the acquirer

irrespective of whether the asset had beenrecognised by the acquiree before the

businesscombinationornot.

If an intangible asset is acquired in anamalgamation in thenatureofpurchase, thesame

should be accounted at cost or fair value if the

cost/fair value can be reliably measured. If the

sameisnotreliablymeasurableitisincludedasapartofgoodwill.Intangibleisrecordedevenifthat

intangible asset had not been recognised in the

financial statements of the transferor. Intangibleassetsacquiredinanamalgamationinthenatureof

merger,oracquisitionofa subsidiaryarerecorded

atbookvalues,whichmeansthatiftheintangibleasset was not recognized by the acquiree, the

acquirerwouldnotbeabletorecordthesame.

ImpairmentofAssets

ReversalofImpairmentLoss

An impairment loss recognised in prior

periodsforanassetotherthangoodwillshall

be reversed if, andonly if, there has been achangeintheestimatesusedtodeterminethe

assets recoverable amount since the last

impairmentlosswasrecognised.Ifthisisthecase, the carrying amount of the asset shall,beincreasedtoitsrecoverableamount.That

increaseisareversalofanimpairmentloss.

Animpairmentlossrecognisedforanassetinprior

accountingperiodsshouldbereversediftherehas

beenachangeintheestimatesofcashinflows,cashoutflows or discount rates used to determine the

asset's recoverable amount since the last

impairmentlosswasrecognised.Ifthisis thecase,the carrying amount of the asset should beincreased to its recoverable amount.That increase

isareversalofanimpairmentloss.

AllocationofgoodwillincaseofCGU

For the purpose of impairment testing,

goodwill acquired inabusiness combinationshall, from theacquisition date, beallocated

to each of the acquirers cash-generating

units,orgroupsofcash-generatingunits,that

areexpectedtobenefitfromthesynergiesofthecombination,irrespectiveofwhetherother

assets or liabilities of the acquiree are

assigned to those units or groups of units.Each unit or group of units to which the

goodwill is so allocated shall represent the

lowest level within the entity at which thegoodwill is monitored for internal

GoodwillisallocatedtoCGUbasedonbottom-up

approach, i.e. identify whether allocated to aparticularCGUonconsistentandreasonablebasis

and then, compare the recoverable amount of the

cash-generating unit under review to its carrying

amountandrecognizeimpairmentloss.

However, if none of the carrying amount of

goodwill can be allocated on a reasonable andconsistent basis to the cash-generating unit under

review;and if, inperforming the 'bottom-up' test,

the enterprise could not allocate the carryingamountofgoodwillonareasonableandconsistent


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IFRS IndianGAAP

managementpurposes;andnotbelargerthan

asegmentbasedoneithertheentitysprimary

or the entitys secondary reporting formatdetermined in accordance with IFRS 8

OperatingSegment.

basistothecash-generatingunitunderreview,the

enterprise should also perform a 'top-down' test,

that is, the enterprise should identify the smallestcash-generating unit that includes the cash-

generating unit under review and to which the

carryingamountofgoodwillcanbeallocatedonareasonable and consistent basis (the 'larger' cash-

generatingunit);andthen,comparetherecoverable

amount of the larger cash-generating unit to itscarryingamountandrecognizeimpairmentloss.

InvestmentProperty

Definition

IAS 40 defines investment property asproperty (land or a building-or part of a

building-orboth)held(bytheownerorbythe

lesseeunderafinancelease)toearnrentalsor

for capital appreciation or both, rather thanforuse intheproductionor supplyofgoods

orservicesorforadministrativepurposes;or

saleintheordinarycourseofbusiness.

AS 13 defines an investment property as aninvestment in land or buildings that are not

intendedtobeoccupiedsubstantiallyforuseby,or

intheoperationsof,theinvestingenterprise.

SubsequentMeasurement

Anentity has anoption toapply either costmodelorfairvaluemodel.Iffairvaluemodel

is adopted, then changes in fair value are

recognised in P&L A/c. In the fair valuemodel the carrying amount is notdepreciated. In the costmodel, the asset is

carriedatcostlessdepreciation.

EAChasopinedthattheinvestmentpropertyneedstobedepreciatedasitisadepreciableasset.Hence,

depreciated cost model must be applied for

subsequentmeasurement. Impairment is providedforwhereapplicable,andreversalofimpairmentsispermitted

Transfersto/fromInvestmentProperty

When there is a change in use of the

investment property, the standard providesdetailed guidance for subsequent

classificationanditsmeasurement.

NoGuidance

InventoryNetrealizablevalue

AnewassessmentofNRV isrequired tobe

madeineachsubsequentperiod.Writedownofinventoryis reversed ifcircumstancesthat

previously caused inventories to be written

down below cost no longer exist or when

NospecificguidanceinAS2.


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IFRS IndianGAAP

there is clearevidence of an increase in the

NRV because of changes in economic

circumstances.

Inventoriesofaserviceprovider

IAS-2 includes provisions relating to the

work-in-progressofaserviceprovider.Under

IAS-2 such WIP consists primarily of thelabour and other costs of personnel directly

engaged in providing the service, including

supervisory personnel, and attributableoverheads.Labourandothercostsrelatingto

salesandgeneraladministrativepersonnelare

notincludedbutarerecognisedasexpensesintheperiodinwhichtheyareincurred.

AS 2 excludes work in progress arising in the

ordinary course of business of service providers.

Hence,thereisnoguidanceforthesame.

Inventoriesacquiredondeferredsettlementterms

IAS 2 specifically requires that where

inventory is acquired on deferred settlement

terms, the difference between the purchase

pricefornormalcredittermsandtheamountpaid is to be accounted as interest expense

overtheperiodoffinancing.

There is no express requirement under AS 2

specifying treatment of inventories acquired on

deferredsettlementterms.

Noncurrentassetsheldforsaleanddiscontinuedoperations

Scope

IFRS-5 sets out requirements for

classification, measurement and presentationof Non-current assets held for sale and the

classificationandpresentationofdiscontinuedoperations.

There is no specific standard which prescribes

classification,measurementandpresentationofallnon-currentassetsheldforsale.HoweverasperAS

10itemsofFixedassetsthathavebeenretiredfromactive use and are held for disposal are stated at

lower or their net book value and net realizable

valueandshowninthefinancialstatements.

As 24 deals with disclosures relating todiscontinuedoperations.

Classification

Anentityshallclassifyanon-currentasset(ordisposalgroup)asheldforsaleifitscarrying

valuewillberecoveredprincipallythroughasale transaction rather than through

continuinguse

AS10givesaverylimitedguidance

Measurement

Non-current assets held for sale should be

measured at the lower of carrying value orfair value less cost to sell. After

Nospecificguidanceexceptabove.


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IFRS IndianGAAP

reclassification theseassetswillnolongerbe

subjecttosystematicdepreciation.

PeriodofdisposalforNon-currentassetsheldforsale

Completed within a year, with limited

exceptions.

Notimeframespecified.

Definition-DiscontinuedOperations

Acomponentofanentitythateitherhasbeendisposed of or is classified as held for sale

and:

(a) represents a separate major line ofbusinessorgeographicalareaofoperations,

(b) is part of a single coordinated plan to

disposeofaseparatemajorlineofbusinessorgeographicalareaofoperationsor

(c)isasubsidiaryacquiredexclusivelywitha

viewtoresale.

A discontinuing operation is a component of anenterprise:

a. thattheenterprise,pursuanttoasingleplan,is (i) disposing of substantially in itsentirety,suchasbysellingthecomponentin

asingletransactionorbydemergerorspin

off of ownership of the component to theenterprises shareholders; (ii) disposing of

piecemeal, such as by selling off the

componentsassetsandsettlingitsliabilitiesindividually; or (iii) terminating through

abandonment;

b. that represents a separate major line ofbusinessorgeographicalareaofoperations;and

c. that can bedistinguishedoperationallyandforfinancialreportingpurposes

Methodofdiscontinuance

Operations and cash flows that have beendisposedofareclassifiedasheldforsale

Pursuanttoa singleplan,eithersubstantiallyinitsentirety or piecemeal or terminated through

abandonment.

Presentation

A single amount ispresented on the faceof

theincomestatementcomprisingtheposttax

profitor loss ordiscontinued operationsandananalysisofthis amounteitheron theface

of the income statement or in the notes for

both current and prior periods. Separateclassificationon the balance sheet for assets

andliabilitiesforthecurrentperiodonly

Thefollowingisseparatelydisclosedonthefaceof

the profit and loss account separately from

continuingoperations:

pre-taxprofitorlossandrelatedtaxes pre-taxgainorlossondisposalIncome/expense line items from continuing anddiscontinuing operations are segregated and

disclosed in the notes toaccount;butispresentedonacombinedbasisintheincomestatement.Noseparatepresentationisrequiredfor

BalanceSheetitems.

FinancialInstruments

Under IndianGAAP therewasnoaccounting standard specifically forfinancial instruments.TheICAI has issued standards for recognition and measurement of financial instruments and their

presentation and disclosure which are recommendatory from 1.4.2009 and mandatory from


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IFRS IndianGAAP

1.4.2011.HencethecomparisongivenbelowiswithoutconsideringtheimpactoftheseStandards.

Also,itisnecessarytonotethatrecognition,measurement,presentationanddisclosureoffinancial

instrumentsisgovernedbytherespectiveregulatorsofvariousindustrieslikeRBI,SEBIandIRDA.

Definition

A financial instrument is any contract that

givesrisetoafinancialassetofoneentityanda financial liability or equity instrument of

anotherentity.

No specific standard on financial instruments.However, accounting of certain financial

instrumentsareprovidedinAS13Accountingfor

InvestmentsandGuidanceNoteonAccountingfor

EquityIndexandEquityStockFuturesandOptionsissuedbytheICAI.

FinancialAssetsClassification

Financialassetisclassifiedinfourcategories:

1)FinancialAssetatFairValuethroughP&LA/c2)HeldtoMaturity

3)LoansandReceivables4)AvailableforSale.

AS 13 classifies investments into long-term and

currentinvestments.

Detailed classificationof Investments forbanks isprescribedbyRBIwhichissimilartoIFRS.

FinancialAssets-Measurement

1)Initialmeasurementoffinancialassetsisat fair value. Transaction cost is alsoincludedintheinitialcarryingvalueunless

theyarecarriedatfairvaluethroughprofit

orloss

2)Subsequentmeasurementisat:a. amortisedcostusingeffectiveinterest

method for Loans and Receivables

andHeld-to-maturityinvestmentsb. fair value for Financial assetsat fair

value through profit or loss and

Available-for-salefinancialassets.Changesincarryingamountareaccounted

in the IncomeStatement for all financial

assets except for Available-for-salefinancial assets which is accounted

throughEquity.

Long term investments are recorded at cost less

diminution, other than temporary. Currentinvestmentsarerecordedatlowerofcostormarket

valueinaccordancewithAS13.

HoweverforBanking,MutualFundandInsurance

sectors, the respective regulators (i.e. RBI, SEBIandIRDA)prescribeguidelinesformeasurementof

Investments.

FinancialLiabilitiesClassification

Financial Liabilities is classified in two

categories:

1) Financial Liabilities at Fair ValuethroughP&LA/c

2) OtherLiabilities

NoGuidance.


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IFRS IndianGAAP

FinancialLiabilitiesMeasurement

Initialmeasurementoffinancialliabilitiesis

atfairvalueoftheconsiderationreceived.

Subsequentmeasurementisat:a. amortisedcostusingeffectiveinterest

methodforotherliabilities

b. fairvalueforFinancialLiabilitiesatfairvaluethroughprofitorloss

NoGuidance.

FinancialAssets-Reclassification

1. FVTPL:a. Reclassification into and out FVTPL

on initial recognition andreclassification of derivatives is

prohibited Held for trading may be

reclassifiedintoAFS,HTMandL&R

incertainrarecircumstances.

2. HTM:a. If significant amount of HTM is

reclassified or sold, the remaining

investments inHTM category are to

be reclassified into AFS and noinvestmentcanbeclassifiedasHTM

foraperiodof2years(alsoknowas

tainting).

3. AFS:a. AFS that would have met the

definitionofL&R(ifithadnotbeendesignated as AFS) it may be

transferredintoL&Riftheentityhas

the intention and ability to hold thefinancial asset for the foreseeable

futureoruntilmaturity.

Where long-term investments are reclassified as

currentinvestments,transfersaremadeatthelower

ofcostandcarryingamountatthedateoftransfer.

Whereinvestmentsarereclassifiedfromcurrenttolong-term, transfers aremadeat the lower of cost

andfairvalueatthedateoftransfer.

FinancialAssets-Derecognition

Financial assets are derecognised based on

risks and rewards first; control is secondarytest.

There is limited guidance for derecognition.

Usually,financialassetsarederecognisedbasedontransferofrisksandrewards.

The ICAI has issued a Guidance Note on

securitization which requires derecognition based

oncontrol.


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IFRS IndianGAAP

Classificationbetweenliabilityandequity

The issuer of a financial instrument shall

classify the instrument, or its component

parts, on initial recognition as a financial

liability, a financial asset or an equityinstrument in accordancewith the substance

of the contractual arrangement and the

definitionsofafinancialliability,afinancialasset and an equity instrument. The

applicationoftheseprincipalsrequirescertain

instrumentswhichhavetheformofequitytobe classified as liability. For example

redeemablepreferenceshareonwhichafixed

dividendispayableareclassifiedasliability.

Classification is based on form rather than

substance.For example preference shares are

treated as capital, even though in many case insubstanceitmaybealiability.

CompoundFinancialInstruments

IAS 32 requires compound financial

instruments,suchasconvertiblebonds,tobesplit into liability component and equity

component and each component is recorded

separately.

No split accounting required and financial

statementsareclassifiedeitherasequityorliabilitydependingon their primarynature.Forexamplea

convertible debenture is generally treated as

liability.

Derivatives

Aderivativeisafinancialinstrumentorother

contractwithinthescopeofthisIAS39withallthreeofthefollowingcharacteristics:

1) its value changes in response to thechange in a specified interest rate,financialinstrumentpriceetc.

2) it requires no or smaller initial netinvestment;and

3) itissettledatafuturedate.

There is no specific standard dealing with

derivatives; though, there are somepronouncementswhichdealwith specific typesof

derivatives.Consequently,manyderivativesremain

outsidethebalancesheet.

EmbeddedDerivatives

All embedded derivatives are required tobe

recognizedseparatelyfromhostcontractif:

1. theeconomiccharacteristicsandrisksofthe embedded derivative are not closelyrelated to the economic characteristicsandrisksofthehostcontract,

2. aseparateinstrumentwiththesametermsas the embedded derivativewouldmeetthedefinitionofaderivative;and

3. thehybrid (combined) instrument is not

Thereisnospecificguidancedealingwithseparate

recognitionofembeddedderivatives.


17/28


IFRS IndianGAAP

measured at fair value with changes in

fairvaluerecognisedinprofitorloss

Ifanembeddedderivativeisseparated,

1) the host contract shall be accounted forunder this Standard if it is a financial

instrument,and

2) in accordance with other appropriateStandards if it is not a financial

instrument.

DeferredTax

Basis

IFRSrequiresentities toaccountfortaxation

using the Balance Sheet liability approachwhich focuses on temporary differencebetween the carrying amount of an asset or

liability inthestatementoffinancialpositionanditstaxbase.

Deferred tax is accounted for using the Income

statement approach, which focuses on timingdifference.

DeferredtaxonrevaluationofPPEandIntangibleAssets

Deferredtaxistobecreatedonrevaluationof

PPE and Intangible assets and the same is

recognisedinothercomprehensiveincome

Deferredtaxisnotrecognisedasitisconsideredto

beapermanentdifference.

RecognitionofdeferredtaxassetsincaseofbusinesscombinationUnderIFRS,thecostofbusinesscombination

is allocated to the identifiable assets andliability assumedby reference to fair values.

However, if no equivalent adjustment is

allowedfortaxpurpose,itwouldgiverisetoatemporarydifference.

Under IndianGAAP, businesscombination(other

thanamalgamation)willnotgiverisetoadeferredtaxadjustment.

DeferredTaxonConsolidation

Temporarydifferencearisewhenthecarryingamount of investments in subsidiaries,

branches or associates or interests in joint

ventures (namely the parent or investorsshare of the net assets including carrying

amountofgoodwill) becomesdifferent from

the tax base (which is often cost) of theinvestment/interest.

Under Indian GAAP, consolidation will not giverisetoadeferredtaxadjustment.


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IFRS IndianGAAP

DeferredtaxonunrealisedIntra-groupprofits

Deferred taxonunrealised intragroupprofit

isrecognisedatthebuyersrate.

Deferred tax is not recognised as deferred tax

expense is an aggregation from separate financial

statementofeachgroupentityandnoadjustmentis

madeonconsolidation.

RecognitionCriteria

A deferred tax asset is recognised if it is

probable(morelikelythannot)thatsufficienttaxableprofitwillbeavailableagainstwhich

the unused tax losses and tax credits canbe

utilised.

Deferredtaxassetsisrecognised(a)ifrealisationis

virtually certain for entities with tax losses carry-forward, whereas (b) if realisation is reasonably

certainforentitieswithnotaxlossescarry-forward

Liabilities

ProvisionsGeneral

Provision are discounted to Present value

wheretheeffectofthetimevalueofmoneyismaterial

Discountingofprovisionsisnotpermitted

ProposedDividend

Liabilityfordividendsdeclaredtoholdersofequity instruments are recognised in the

periodwhendeclared

Dividendsarerecognisedasanappropriationfromprofitsandrecordedasliabilityatthebalancesheet

date, if proposed or declared subsequent to the

reporting period but before approval of the

financialstatements

FinancialLiabilitiesversusEquityClassification

Capital Instruments areclassified,dependingon substance of issuers contractual

obligations as either liability or equity or

equityandliability.

Mandatory redeemable preferenceshares are

classifiedasliabilities.

No specific guidance. Inpractice, classification isbasedonlegalformratherthansubstance.

All preference shares are disclosed separately as

sharecapitalundershareholdersfunds.

Revenue

Additionalconditionforrecognitionofrevenuefromsaleofgoodsorrenderingofservices

IAS18prescribesanadditionalconditionthat

thecostsincurredortobeincurredinrespect

ofthetransactioncanbemeasuredreliablytobefulfilledbefore therecognitionofrevenue

fromsaleofgoods.

This condition is not required to be fulfilled for

recognizingrevenueunderAS9.

BarterTransactions

Theaccountingtreatmentdependsonwhether

theexchange transactioninvolves goodsand

NoSpecificGuidance


19/28


IFRS IndianGAAP

services of similar nature and value (for

example,exchangeofcommoditieslikeoilor

milk).Exchangesofsimilarassets:1. Carryingamountof theasset received=

Carryingamountoftheassetsurrendered

+cashorcashequivalenttransferred.2. Nogainsorlossesarerecognised.Exchangesofdissimilarassets:

1. Carryingamountof theasset received=Fairvalueoftheasset received+/-cash

orcashequivalenttransferred

2. Gainorlosstoberecognised=Fairvalueof the asset received +/- cash or cashequivalent transferred- carrying amount

oftheassetsurrendered

Interest

Interest income is recognised using the

effectiveinterestmethod.

Interest is recognised on a time proportion basis

takingintoaccounttheamountoutstandingandtherateapplicable

RenderingofServices

Requires recognition using percentage ofcompletion method. Revenues from

installation fees and production commission

are recognised with reference to stages ofcompletion, unless the installation is

incidentaltosale

Completed service contract method orproportionatecompletionmethodpermitted

CustomerLoyaltyPrograms

Awardcreditsareaccountedforasaseparate

identifiablecomponentofasalestransaction,

with theconsideration allocated between theawards credit and the other components of

sale.

Nospecificguidance.

EmployeeBenefits

Actuarialgainsandlosses

Actuarialgainsandlossesmaybe: recognisedimmediatelyinprofitorloss; recognised immediately in other

comprehensiveincome;or

deferred upto a maximum with anyexcess of 10% of the greater of thedefined benefit obligation or the fair

valueoftheplanassetsattheendofthe

Actuarial gains and losses should be recognisedimmediately inthe statementof profit and loss as

anincomeorexpense.


20/28


IFRS IndianGAAP

previous reporting period being

recognised over the expected average

remaining working lives of theparticipating employees or other

acceleratedbasis

EffectsofChangesinForeignExchangeRates

FunctionalandPresentationCurrency

Thereisaconceptof3currencies:Functional

Currency,ForeignCurrencyandPresentation/

Reporting Currency, which are defined asunder.

Functional Currency is the currency of theprimary economic environment inwhich the

entityoperates.

Foreign currency is a currency other thanfunctionalcurrency.

PresentationcurrencyisthecurrencyinwhichtheFinancialStatementsarepresented.

ThereisnoconceptofFunctionalCurrency.

Foreign currency is a currency other than thereportingcurrencywhich is the currencyinwhich

FinancialStatementsarepresented.

TranslationsintheConsolidatedFinancialStatements

Nodistinction ismadebetween integral and

non-integralforeignoperationsunderIAS21.

All entities are required to prepare theirFinancial statements in Functional currency.Any exchange gain/loss to record a

transaction in its functional currency is

recognised in the income statement. Intranslating the Financial Statement from

functionalcurrency topresentation currency,

thereportingentityshouldusethefollowingprocedures:

a. Assetsand liabilities,bothmonetaryandnon-monetaryshouldbe translatedat the

closingrate.b. Income and expenses items should betranslatedatexchangeratesatthedateof

transactions;andc. Allresultingexchangedifferencesshould

be accumulated in foreign currency

translation reserve until the disposal oftheinvestment.

Translationoffinancialstatementstothereportingcurrency of the parent/investee depends on the

classification of that operation as integral or nonintegral.

Inthecaseofanintegraloperation,monetaryassets

are translated at closing rate; non-monetary itemsaretranslatedathistoricalrateiftheyarevaluedat

costandatclosingrateiftheyarevaluedonother

valuationbasisandincomeandexpenseitemsaretranslated at historical/average rate. Exchange

differencesaretakentothestatementofprofitand

loss.

For non-integral operations, closing rate method

shouldbefollowed(i.e.allassetsandliabilitiesare

tobetranslatedatclosingratewhileprofitandlossaccountitemsaretranslatedatactual/averagerates).

The resulting exchange difference is taken to

reserve and is recycled to profit and loss on thedisposalofthenon-integralforeignoperation.


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IFRS IndianGAAP

OperatingSegments(IFRS8v/sAS17)

Applicability

Thisstandardisapplicableto

separate or individual financialstatementsofanentitywhosedebtor

equity instruments are listed or

proposedtobelisted,and

Consolidated Financial Statements ofa groupwith a parent whose debt or

equity instruments are listed or

proposedtobelisted.

ThisstandardisapplicabletoalllevelIentities.

DeterminationofSegments

IFRS imposesa ManagementApproach totheidentificationofoperatingsegmentswhich

is to be based on internal reports that areregularly reviewed by the entitys ChiefOperatingDecisionMaker(CODM)inorder

to allocate resources to the segment and

assessitsperformance.

AS17requiresanenterprisetoidentifytwosetsofsegments(businessandgeographical),usingarisks

andrewardsapproach,withtheenterprisessystemof internal financial reporting tokeymanagementpersonnelservingonlyasthestartingpointforthe

identificationofsuchsegments.

Measurement

Segmentprofitorlossisreportedonthesame

measurement basisas that used by the chiefoperating decision maker. There is no

definition of segment revenue, segment

expense,segmentresult,andsegmentassetorsegmentliability

Segment information is prepared in conformity

with theaccountingpoliciesadoptedforpreparingand presenting the financial statements of the

enterprise as a whole. Segment revenue, segment

expense,segmentresult,segmentassetandsegmentliabilityhavebeendefined

Conformitywithaccountingpolicies

IFRS 8 does not define segments as eitherbusiness or geographical segment and does

notrequiremeasurement ofsegment amount

based on entitys accounting policies, anentity must disclose how it determined its

reportable operating segments and the basison which disclosed amount have been

measured

AS17 requires that segment informationmustbepreparedinconformitywiththeaccountingpolicies

adoptedforpreparingandpresentingtheFinancial

Statementsoftheconsolidatedgrouporentity.

Reconciliation

Requires reconciliation of segment

performance measures, and segment assetsandliabilitieswiththecorrespondingamounts

reportedinthefinancialstatements

Reconciliation is presented between the

informationdisclosed for reportablesegments andthe aggregated information in the enterprises

financialstatements.


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IFRS IndianGAAP

Discretereporting

IFRS 8 allows for discrete reporting of a

componentofanentitythatsellsprimarilyor

exclusivelytootheroperatingsegmentsofan

entity.

AS 17 requires only those segments which sell

exclusivelyorprimarilytoexternalcustomerstobe

deemedreportablesegments.

ShareBasePayment(GrantDateAccounting)

Accountingstandard

There is a detailed standardwith respect to

sharebasedpayment

Nospecificstandard.However, ICAI hasissueda

recommendatory Guidance Note for Employee

sharebasedpayment.

Measurement

Employee share base payment should be

accountedforusingfairvaluemethod.

Employee share based payments are accounted

eitheratintrinsicvalueorfairvalue

ConsolidatedFinancialStatements(CFS)Applicability

All entities have to prepare Consolidated

FinancialStatementsunderIFRS

Consolidated Financial Statements are mandated

only by the regulator i.e. Securities ExchangeBoardofIndia(SEBI)forlistedcompanies

DefinitionofControl

Control is the power togovern the financialand operating policies of an entity so as to

obtainbenefitsfromitsactivities.

Controlis:1. the ownership, directly or indirectly through

subsidiary(ies), of more than one-half of the

votingpowerofanenterprise;or2. control of the composition of the board of

directors in the case of a company or of thecomposition of the corresponding governing

body incase of any other enterprise so as toobtaineconomicbenefitsfromitsactivities.

Thereforeamereownershipofmore than 50%of

equity shares is sufficient to constitute controlunderIndianGAAP,whereasthisisnotnecessarily

sounderIFRS.

DualControl

Onlyoneentitycan have control (as distinct

from joint control) over another entity.

Therefore, when two or more entities each

hold significantvoting rights, certain factorsare reassessed todetermine which partyhas

control.

Inararesituation,whenanenterpriseiscontrolled

bytwoenterprisesonewhichcontrolsbyvirtueof

ownershipofmajorityofthevotingpowerandthe

otherwhichcontrols,byvirtueofanagreementorotherwise, the composition of the board of

directors, the first mentioned enterprise will be

considered as subsidiary of both the controllingenterprises and therefore,both theenterpriseswill

needtoconsolidatethefinancialstatementsofthat


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IFRS IndianGAAP

enterprise.

PotentialVotingRights

The existence and effect of potential voting

rights that are currently exercisable or

convertible, including potential voting rights

held by another entity, are considered whenassessingcontrol.

As per ASI 18, potential voting rights are not

consideredfordeterminingsignificant influence in

thecaseofanassociate.

Subsidiariesexcludedfromconsolidation

CFS includes all subsidiaries. A subsidiary

thatmeets, on acquisition, the criteria to be

classifiedasheldforsaleinaccordancewithIFRS5,NonCurrentAssetsHeldforSaleand

Discontinued Operation, applies the

presentation for assets held for sale (i.e.separate presentation of assets and liabilities

to be disposed), rather than normal line by

lineconsolidation.

Precludeconsolidationofasubsidiarywhencontrol

over that subsidiary is likely to be temporary.

Considersasubsidiarytobetemporarilycontrolledwhen it is acquired and held exclusively with a

viewtoitssubsequentdisposalinthenearfuture.

Also precludes consolidation of a subsidiary thatoperatesunderseverelongtermrestrictions,which

significantly impair its ability to transfer funds to

theparent. IntheCFS, theprecludedsubsidiaries

areaccountedasperAS-13andthereasonsfornotconsolidatingaredisclosed.

Reportingperiod

When financial statements of a subsidiary

usedinpreparationofCFSarepreparedasof

a reporting date different from that of the

parent, adjustments shall be made for theeffects of significant transactions or events

that occur between that and the date of the

parents financial statements. In any case thedifference between the reporting dateof the

subsidiaryand that ofthe parent shallbeno

morethanthreemonths.

SimilartoIFRS,exceptthatthedifferencebetween

the reporting dates should not be more than six

months.

Uniformaccountingpolicies

Compliancewithuniformaccountingpolicies

ismandatory.

CFSshouldbepreparedusinguniformaccounting

policies for like transactions and other events insimilarcircumstances.Ifitisnotpracticabletouse

uniformaccountingpolicies inpreparing theCFS,that fact should be disclosed together with the

proportions of the items in the CFS towhich thedifferentaccountingpolicieshavebeenapplied.

SpecialPurposeEntities

SIC12statesthataSpecialPurposeEntity

(SPE) should be consolidated when the

Nospecificguidance.


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IFRS IndianGAAP

substance of the relationship between an

entityand the SPE indicates that the SPE is

controlledbythatentity.

AccountingforInvestmentinSubsidiaryinParentsSeparateFinancialStatements

Parents investment in a subsidiary be

accounted for in the parents separatefinancial statements (a) at cost, or (b) as

available-for-salefinancialassetsasdescribed

inIAS39.

Investmentsinsubsidiaryshouldbeaccountedforin accordance with AS 13, Accounting for

Investments, which is cost as adjusted for any

diminutionother than temporary invalueof those

investments.

InvestmentsinJointventures

If the reporting enterprise does not prepareconsolidated financial statements because it

has no subsidiaries, its Jointly Controlled

Entities should be either proportionatelyconsolidatedorequityaccounted.

At cost less impairment if consolidated financialstatementsarenotprepared.

BusinessCombinations

Scope

Appliestomostbusinesscombinationboth

amalgamation (where acquiree loses itsidentity)and acquisition (where acquiree

continues its existence). IFRS 3 does not

apply to common control transactions,formation of JVs, combinations involving

mutual entities and combinations throughcontractalone.

There is no one comprehensive standard. AS-14

applies only to amalgamation. AS-21, 23, 27applies to accounting for investments in

subsidiaries, associates and joint ventures

respectively.AS-10wouldapplywhereademergeddivisionisacquiredonalump-sumbasisbyanother

entity.

Acquisitiondate

The date on which the acquirer effectivelyobtainscontroloftheacquiree.

The date of amalgamation as defined in

Amalgamation/ acquisition scheme of High

Court/RBI.

ContingentLiabilities

Contingent Liabilities are to be included in

NetAssetsatfairvalue.

ContingentliabilitiesarenotrecordedasLiabilities.

MethodofAccounting

All business combinations are accounted

underPurchaseMethodatfairvalues.PoolingofInterestMethodisprohibited.

BothPurchaseMethod(agreedvalues)andPooling

ofInterestMethod(carryingamount)arepermitted.


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IFRS IndianGAAP

SubsequentadjustmenttoAssetsandLiabilities

A12monthwindowperiodisallowedtoget

theacquisitionaccountingright.Upto the12

month period, any adjustments to the fair

value of assets/liabilities taken over arerecognized with a corresponding effect to

goodwill. After the 12 months period, any

adjustments to the fair value ofassets/liabilities takenoverarerecognized in

the income statement. In respect of

adjustments arising out of contingentconsideration, correction of errors and

deferred taxes, the 12 months time barring

periodisnotapplicableandany adjustmentsontheseaccounts,thecorrespondingeffectis

taken togoodwill, even if the same is made

after12months.

Nochangeispermitted

ContingentConsideration

Considerationfortheacquisitionincludesthe

acquisition date fair value of contingentconsideration. Changes in Contingent

consideration resulting from the events after

theendofthereportingperiodarerecognisedinprofitorloss.

Nospecificguidance.

AccountingforGoodwill

The acquirer shall, at the acquisition daterecognise goodwill acquired in a businesscombinationasanasset;andinitiallymeasure

thatgoodwill atits cost, being the excessof

thecostofthebusinesscombinationovertheacquirersinterestinthenetfairvalueofthe

identifiable assets, liabilities and contingent

liabilitiesrecognised.Afterinitialrecognition,theacquirershallmeasuregoodwill acquired

in a business combination at cost less any

accumulated impairment losses. Goodwill

amortizationisprohibited.

Treatment of goodwill differs in differentaccounting standards. Goodwill arising onamalgamationinnatureofpurchaseisamortisedto

P&Lover5years.GoodwillunderAS-21,23and

27 need not be amortised though there is noprohibition. In case of amalgamation innature of

merger,excessamountovernetassetstakenoveris

adjusted against revenue reserves.All goodwill istestedforimpairment.

NegativeGoodwill

Iftheacquirersinterestinthenetfairvalueof the identifiable assets, liabilities and

contingent liabilities recognised exceeds the

costofthebusinesscombination,theacquirershall reassess the identification and

RecordedasCapitalReserve.


26/28


IFRS IndianGAAP

measurement of the acquirees identifiable

assets,liabilitiesandcontingentliabilitiesand

the measurement of the cost of thecombination; and recognise immediately in

profitorlossanyexcessremainingafterthat

reassessment.

Acquisitionrelatedcosts

Acquisitionrelatedcostssuchasfindersfees,

due diligence fees, legal fees etc, areaccounted for an expenses in the period in

which the costare incurred and services are

received.

Nospecificguidance.


27/28


Appendix:ListofIFRS

IFRS

IFRS1 First-timeAdoptionofInternationalFinancialReportingStandards

IFRS2 Share-basedPayment

IFRS3 BusinessCombinations

IFRS4 InsuranceContracts

IFRS5 Non-currentAssetsHeldforSaleandDiscontinuedOperations

IFRS6 ExplorationforandEvaluationofMineralResources

IFRS7 FinancialInstruments:Disclosures

IFRS8 OperatingSegments

IFRS9 FinancialInstruments(replacementofIAS39)

IAS

IAS1 PresentationofFinancialStatements

IAS2 InventoriesIAS7 StatementofCashFlows

IAS8 AccountingPolicies,ChangesinAccountingEstimatesandErrors

IAS10 EventsaftertheReportingPeriod

IAS11 ConstructionContracts

IAS12 IncomeTaxes

IAS16 Property,PlantandEquipment

IAS17 Leases

IAS18 Revenue

IAS19 EmployeeBenefits

IAS20 AccountingforGovernmentGrantsandDisclosureofGovernment

Assistance

IAS21 TheEffectsofChangesinForeignExchangeRates

IAS23 BorrowingCosts

IAS24 RelatedPartyDisclosures

IAS26 AccountingandReportingbyRetirementBenefitPlans

IAS27 ConsolidatedandSeparateFinancialStatements

IAS28 InvestmentsinAssociates

IAS29 FinancialReportinginHyperinflationaryEconomies

IAS31 InterestsinJointVentures

IAS32 FinancialInstruments:Presentation

IAS33 EarningsperShareIAS34 InterimFinancialReporting

IAS36 ImpairmentofAssets

IAS37 Provisions,ContingentLiabilitiesandContingentAssets

IAS38 IntangibleAssets

IAS39 FinancialInstruments:RecognitionandMeasurement

IAS40 InvestmentProperty

IAS41 Agriculture


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IFRIC

IFRIC1 ChangesinExistingDecommissioning,RestorationandSimilarLiabilities

IFRIC2 MembersSharesinCo-operativeEntitiesandSimilarInstruments

IFRIC4 DeterminingwhetheranArrangementcontainsaLeaseIFRIC5 RightstoInterestsarisingfromDecommissioning,Restorationand

EnvironmentalRehabilitationFunds

IFRIC6 LiabilitiesarisingfromParticipatinginaSpecificMarketWaste

ElectricalandElectronicEquipment

IFRIC7 ApplyingtheRestatementApproachunderIAS29FinancialReporting

inHyperinflationaryEconomies

IFRIC8 ScopeofIFRS2

IFRIC9 ReassessmentofEmbeddedDerivatives

IFRIC10 InterimFinancialReportingandImpairment

IFRIC11 IFRS2GroupandTreasuryShareTransactions

IFRIC12 ServiceConcessionArrangementsIFRIC13 CustomerLoyaltyProgrammes

IFRIC14 IAS19TheLimitonaDefinedBenefitAsset,MinimumFunding

RequirementsandtheirInteraction

IFRIC15 AgreementsfortheConstructionofRealEstate

IFRIC16 HedgesofaNetInvestmentinaForeignOperation

IFRIC17 DistributionsofNon-cashAssetstoOwners

IFRIC18 TransfersofAssetsfromCustomers

SIC

SIC7 IntroductionoftheEuro

SIC10 GovernmentAssistanceNoSpecificRelationtoOperatingActivities

SIC12 ConsolidationSpecialPurposeEntities

SIC13 JointlyControlledEntitiesNon-MonetaryContributionsbyVenturers

SIC15 OperatingLeasesIncentives

SIC21 IncomeTaxesRecoveryofRevaluedNon-DepreciableAssets

SIC25 IncomeTaxesChangesintheTaxStatusofanEntityoritsShareholders

SIC27 EvaluatingtheSubstanceofTransactionsInvolvingtheLegalFormof

SIC29 ServiceConcessionArrangements:Disclosures

SIC31 RevenueBarterTransactionsInvolvingAdvertisingServices

SIC32 IntangibleAssetsWebSiteCosts

key differences

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