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7/25/2019 gaap,Ifrs,Ias,Indian Gaap, Us Gaap

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GAAP, IAS, Indian

Accounting Standard, IFRS


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GAAP

The primary objective of nancial accountingand reporting i to provide information uefulfor ma!ing invetment and lending deciion"

Rule that govern accounting are called

Generally Accepted Accounting Principle#GAAP$

GAAP i a term that applie to broadconcept or guideline and detailed practice

in accounting, including all the convention,rule and procedure that ma!e up acceptedaccounting practice at a given time"


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%enition a per &i!ipedia '

Generally Accepted Accounting Principle#GAAP) refer to the tandard frame(or!of guideline for nancial accounting

ued in any given juridiction) generally!no(n a accounting tandard" GAAPinclude the tandard, convention, and

rule accountant follo( in recording andummari*ing, and in the preparation ofnancial tatement"


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+Accounting Principle are the rule of

action or the method and procedureof accounting commonly adopted(hile recording buine tranaction"

Accounting Principle are generaldeciion rule derived from objective

and concept of accounting (hichgovern the development of accountingtechni-ue"


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Accounting principle are divided into

t(o Accounting .oncept

Accounting .onvention

Accounting .oncept

Thee are baic aumption orfundamental propoition concerning theeconomic, political and ociologicalenvironment in (hich accounting mutoperate"


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/" 0uine 1ntity .oncept

2" Going .oncern .oncept

3" 4oney 4eaurement .oncept

5" %ouble 1ntry .oncept

6" Accounting Period .oncept7" .ot .oncept

8" Realiation .oncept

9" 4atching of .ot and Revenue .oncept:" Accrual .oncept

/;"Reliability .oncept


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Accounting .onvention Accounting convention are tradition

and cutom (hich guide theaccountant (hile preparing the

accounting tatement"

/".onvention of full dicloure

2".onvention of conervatim3".onvention of conitency

5".onvention of materiality


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FAS0 formulate accounting tandardthrough the iuance of Statements of

Financial Accounting Standards (SFAS).Thee tatement ma!e up the body ofaccounting rule !no(n a the GenerallyAccepted Accounting Principles

(GAAP). &hile FAS0 i independent, (ith cloe

relation (ith the S1., it deciion arein>uenced by a variety of entitie li!ecorporation, academia, Govt ? IRS,American Intitute of .ertied PublicAccountant #AI.PA$, Invetor ? n

Intitution, Accounting rm, etc"


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International AccountingRegulation

In /:83, the International AccountingStandards Committee (IASC) (a

founded by accountancy bodie inAutralia, .anada, France, Germany,Ireland, @apan, 4eico, the Betherland,

the


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In 2;;/, the IAS. (a replaced by theInternational Accounting Standards

Board (IASB), an independent entitybaed in Dondon, in order to overee thecontinued convergence of globalaccounting tandard"

IAS0 comprie /5 board memberappointed by the Trutee of the IAS.Foundation, a parent organi*ation"

IAS0 ha the ole reponibility ofdeveloping International FinancialReporting Standards (IFRS).


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In 2;;2, FAS0 and IAS0 agreed to(or! together to(ard the

conergence of !.S. GAAP and

IFRS. Since then, there ha been aconvergence of thee t(o et ofaccounting tandard"


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Introduction = IFRS

IFRS relate to a et of nancialaccounting reporting ytem including

pecication and frame(or! developedby ISA0, an independent accountingtandard development body, baed at

Dondon,


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S1. #Securitie and 1change.ommiion,


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Ebjective = IFRS

Primary objective of IFRS, a alorecommended by S1. #Securitie and1change .ommiion$,


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.ompoition = IFRS

IFRS mainly comprie InternationalFinancial Reporting Standard iue after2;;/ a recommended and developed by

IAS0" 0eide that, IFRS alo include International

Accounting Standard iued bet(een /:83and 2;;/ by IAS. #International Accounting

Standard .ommittee$ and interpretationderived from IFRI. #International FinancialInterpretation .ommittee$"


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Advantage = IFRS

1liminate multiple reporting

4ore cro border tranaction

Reduced cot of capital and better acceto global capital mar!et

0etter comparability and tranparency ofbuine performance and activitie

Provide impetu to cro border

ac-uiition An IFRS balance heet (ill be cloer to

economic value #n intru and invet

propertie to be recorded at fair value$


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.hallenge = IFRS

.hange in the regulatory environment

Dac! of trained and eperiencedreource

0uine performance meaurementand educating invetor and 0oard

Greater compleity in nancial

reporting proce

Signicant one time cot


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IFRS Indian Eriginal Plan

Plan for converging

The 4initry of .orporate Aair #4.A$ apart of the Government of India had in@anuary 2;/; announced a multi=phae plan

for tranition beginning April /, 2;// to thene( .onverged Indian Accounting Standard

Indian verion of IFRS, referred to a +IndAS,

The 4.A ha nali*ed thirty=ve Ind AS inFebruary 2;//"

The actual date of application of thee IndAS i yet to be notied"


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Thee tandard (ill need to beincorporated in to la( by amendment to

the .ompanie Act (hich i yet to happen

&hile thee tandard are imilar to IFRS afe( additional eemption H change have

been made to ome of them (hich mayreult in dierence bet(een IFRS and IndAS for ome companie"


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ERIGIBAD TRABSITIEB PDAB #ubject tochange$

P"ase I #.ompanie moving from April /,2;//$

.ompanie on the 0S1 Sene 3; and BS1 Bifty 6; .ompanie having lited ecuritie outide of India

.ompanie having net (orth in ece of R" /;;;crore #


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P"ase II #.ompanie moving from April/, 2;/3$

.ompanie (ith net (orth in ece of R"6;; crore #


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P"ase III#.ompanie moving from April/, 2;/5$

Dited companie having net (orth of R"6;; crore #


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ev e mp emen a on%eadline

En 2 @anuary 2;/6, the Pre Information

0ureau, Government of India, 4initry of.orporate Aair #4.A$ iued a note outliningthe variou phae in (hich Indian AccountingStandard converged (ith IFRS #Ind AS$ i

propoed to be implemented in India, for.ompanie other than 0an!ing .ompanie,Inurance .ompanie and B0F."

oluntary Adoption .ompanie can voluntarily adopt Ind AS for

accounting period beginning on or after / April2;/6 (ith comparative for period ending 3/4arch 2;/6 or thereafter" Jo(ever, once they

have choen thi path, they cannot (itch bac!"


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4andatory Applicability

Phae I

Ind AS (ill be mandatorily applicable to thefollo(ing companie for period beginning onor after # April $%#&, (ith comparative forthe period ending '# arc" $%#& or

thereafter' .ompanie (hoe e-uity andHor debt ecuritie

are lited or are in the proce of liting on anytoc! echange in India or outide India andhaving net (orth of 6;; crore IBR or more"

.ompanie having net (orth of 6;; crore IBR ormore other than thoe covered above"

Jolding, ubidiary, joint venture or aociate

companie of companie covered above"


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Phae II

Ind AS (ill be mandatorily applicable to thefollo(ing companie for period beginning onor after # April $%#, (ith comparative forthe period ending '# arc" $%# orthereafter'

.ompanie (hoe e-uity andHor debt ecuritie

are lited or are in the proce of being lited onany toc! echange in India or outide India andhaving net (orth of le than rupee 6;; .rore"


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.onverged Indian AccountingStandard

Thee are the converged Indian AccountingStandard #Ind AS$ hoted by 4.A on it(ebite" The date on (hich thee (ill comeinto force i yet to be notied"

/" Ind AS" /"

Framework for the Preparation andPresentation of Financial Statements inaccordance with Indian Accounting Standards

2" Ind AS /;/

First-time Adoption of Indian AccountingStandards


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3" Ind AS /;2

Share based Payment

5" Ind AS /;3Business Combinations

6" Ind AS /;5

Insurance Contracts7" Ind AS /;6

Non current Assets eld for Sale and

!iscontinued "perations8" Ind AS /;7

#$ploration for and #%aluation of&ineral 'esources


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9" Ind AS /;8

Financial Instruments( !isclosures

:"Ind AS /;9

"perating Segments

/;" Ind AS /

Presentation of Financial Statements

//" Ind AS 2

In%entories

/2" Ind AS 8

Statement of Cash Flows/

/3" Ind AS 9

Accounting Policies) Changes in Accounting

#stimates and #rrors


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/5" Ind AS /;

#%ents after the 'eporting Period

/6" Ind AS //Construction Contracts

/7" Ind AS /2

Income *a$es/8" Ind AS /7

Property) Plant and #+uipment

/9" Ind AS /8

,eases

/:" Ind AS /9

'e%enue


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2;" Ind AS /:

#mployee Benets

2/" Ind AS 2;

Accounting for .o%ernment .rants and!isclosure of .o%ernment Assistance

22" Ind AS 2/

*he #/ects of Changes in Foreign #$change'ates

23" Ind AS 23

Borrowing Costs

25" Ind AS 25'elated Party !isclosures

26" Ind AS 28

Consolidated and Separate Financial

Statements


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27" Ind AS 29

In%estments in Associates

28" Ind AS 2:

Financial 'eporting in yperin0ationary#conomies

29" Ind AS 3/Interests in 1oint 2entures

2:" Ind AS 32

Financial Instruments( Presentation3;" Ind AS 33

#arnings per Share


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3/" Ind AS 35

Interim Financial 'eporting

32" Ind AS 37

Impairment of Assets

33" Ind AS 38

Pro%isions) Contingent ,iabilities and Assets

35" Ind AS 39

Intangible Assets

36" Ind AS 3:

Financial Instruments( 'ecognition and&easurement

37" Ind AS 5;

In%estment Property

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