Professional Documents
Culture Documents
Examples: Example:
In US, USGAAP.
In UK, IFRS.
IFRS COMPLIANCE
IFRS on Adaption basis:
If a country directly adopt/opt IFRS standards for the purpose of Financials Reporting it is
called as IFRS on adaption basis.
If a country prepare its own Accounting standards inline with IFRS with respect to
business conditions then it is called as converged Standards.
In India IFRS follows on convergence basis. Because Ind AS are prepared inline with IFRS
by considering Indian Business conditions.
WHAT IS IND AS…
These are new set of accounting standards notified and issued by
Central Government through Companies (Indian Accounting
Standards) Rules 2015
Enterprise
Expansion – Expanding to global markets, Global funding
Competitiveness – Competitive edge between enterprises
Quality & Transparency – More Transparent financial reporting process
Reduced cost - It reduces the cost of conversion of financial statements for
local companies which makes investments, raising capital, listing abroad etc.
Investors
Reliable – Financial Statements are more reliable
Easy comparison – Easy comparison for investment in other foreign
companies
APPLICABILITY
Voluntary Basis
Any company may comply with the Indian Accounting Standards (Ind AS)
for financial statements for accounting periods beginning on or after
1stApril, 2015, with the comparatives for the period ending on 31st
March, 2015, or thereafter;
MANDATORY BASIS
Special bodies governing by regulatory authorities IND AS applicable With effect from F.Y 2018-19
Except for RRBs
FINANCIAL STATEMENTS
Balance
Sheet as at
Statement of Notes the
Balance Statement of Cash Flow
Changes In forming part beginning of
Sheet Profit & Loss statement
Equity of accounts the
preceding
period
XI Profit/(loss) for the period (VII+ X) XIII Tax expense of discontinued operations
Profit/(loss) from Discontinued operations
XII Other Comprehensive Income XIV
(after tax) (XII-XIII)
A (i) Items that will not be reclassified to
XV Profit/(loss) for the period (XI+XIV)
profit or loss
(ii) Income tax relating to items that will
XVI Earnings per equity share
not be reclassified to profit or loss
B (i) Items that will be reclassified to
(1) Basic
profit or loss
(ii) Income tax relating to items that will
(2) Diluted
be reclassified to profit or loss