IFRS & Indian AS

AS-16 AS-20 AS-21

Group-4

 IFRS: International Financial Reporting standards IAS: International Accounting Standards Ind AS: Indian Accounting standards

IAS (FASB)

implemented

IFRS (IASB)

Ind AS (ICAI)

IFRS Requirements Statement of financial position

Statement of comprehensive income

Cash flow statement Statement of changes in equity Summary of accounting policies.

IFRS Convergence Benefits & Challenges

Benefit
Access to International Capital Market, International Money Market without risk premium. -Lower cost of Capital -Eliminating dual set of Financials Global Benchmarking Elimination of Multiple Reports New and Global Opportunities for professionals (Specially C.A.s).

Challenges

Training to be provided to Stakeholders, CFOs, Auditors, Audit Committee, Analysts, Regulators, Tax Authorities

IFRS IMPLEMENTATION
April 1, 2011
NSE Nifty 50 Companies BSE SENSEX 30 Companies Companies with net worth > Rs. 1,000 crore Companies whose shares or other securities are listed outside India [Note: Excludes insurance companies, Banks and NBFCs]

April 1, 2012

All insurance companies

April 1, 2013

Companies with net worth between Rs. 500 crore and Rs. 1,000 crore All Scheduled Commercial Banks Urban co-operative Banks with net worth > Rs. 300 crore NBFCs on NIFTY and SENSEX NBFCs with net worth > Rs. 1,000 crore Listed companies with net worth < Rs. 500 crore Urban co-operative banks with net worth between Rs. 200-300 crore All listed NBFCs Unlisted NBFCs with net worth between Rs. 500 crore and Rs. 1,000 crore

April 1, 2014

Note: 1) Companies not included in the chart will apply existing Indian Accounting Standards or voluntarily switch to IFRS-converged standards Source: PricewaterhouseCoopers; Business Line

Fixed assets

AS 16
Revaluations are required to be done regularly
Revaluation is important when fair market value of fixed asset is subject to significant volatility Revaluation can be done once in 3-5 years Both upward and downward revaluation can be done

IAS 16
There is no significant difference between AS10 and IAS 16 except
Upward revaluation

Foreign Exchange
AS 21
Transactions in foreign currencies must be expressed in the enterprises reporting currency Exchange rates to be used
foreign currency monetary items shall be translated using the closing rate

IAS 21
No significant difference

non-monetary items that are measured in terms of historical cost in a foreign currency shall be translated using the exchange rate at the date of the transaction non-monetary items that are measured at fair value in a foreign currency shall be translated using the exchange rates at the date when the fair value was determined

Government Grants
AS 20 IAS 20

Accounting for Government Grants should be recognized if:

The enterprise will comply with the conditions attached to them The grants will be received

No significant difference

Thank you