What is the difference between as and IND as financials?
IND AS 1 deals with presentation of financial statements. AS 1 deals with disclosure of accounting policies.
| Criteria | Ind AS | AS |
|---|---|---|
| Valuation | The majority of valuations are at Fair Value. | Most valuations are at Historical Cost. |
| Property Plant & Equipment Valuation | Option to value PPE at Fair value or at cost. | Valuation of PPE at Historical cost only. |
The difference between GAAP and IND AS is that GAAP is used in the United States of America and Ind AS is used specifically in India. Also read: Difference Between Cash Basis and Accrual Basis of Accounting. Accrual Basis of Accounting.
According to the Indian GAAP, the Consolidation of Accounts of subsidiary companies is not mandatory. However, if an enterprise presents their consolidated financial statements, they have to comply with AS 21. As per the US GAAP, Consolidation of results of Subsidiary Companies is mandatory.
Indian Accounting Standards (Ind ASs) are Standards prescribed under Section 211(3C) of the Companies Act, 1956. Material Omissions or misstatements of items are material if they could, individually or collectively, influence the economic decisions that users make on the basis of the financial statements.
GAAP (Generally Accepted Accounting Principles), IFRS (International Financial Reporting Standards), and Indian Accounting Standards (Ind AS) are three different sets of accounting standards used by companies and organizations around the world to prepare and present their financial statements.
Ind AS or Indian Accounting Standards govern the accounting and recording of financial transactions as well as the presentation of statements such as balance sheet and profit and loss account of a company in India.
All companies listed on stock exchanges in India or outside India with a net worth of Rs. 250 crore or more and unlisted companies with a net worth of Rs. 500 crore or more are required to comply with Ind AS. This includes subsidiaries, joint ventures, and associates of such companies.
Under GAAP, companies report revenues, expenses and net income. Conversely, tax-basis entities report gross income, deductions, and taxable income.
The main difference between GAAP and tax accounting is their objectives. While GAAP is focused on providing accurate financial information to external stakeholders, tax accounting is focused on complying with tax laws and regulations.
What are the golden rules of accounting?
What are the Golden Rules of Accounting? 1) Debit what comes in - credit what goes out. 2) Credit the giver and Debit the Receiver. 3) Credit all income and debit all expenses.
US GAAP in full text. The Financial Accounting Standards Board (FASB) provides free online access to the Accounting Standards Codification and is the only authoritative source for US GAAP.
India follows an accounting standard that is based on IFRS, it is known as Ind AS and is in use since the accounting period of 2016-17. The latest revision happened in June 2021.
One example is an entity's obligation under a forward contract to purchase its own equity instruments for cash. When the financial liability is recognised initially under Ind AS 39, its fair value (the present value of the redemption amount) is reclassified from equity.
Financial statements do not comply with Ind ASs if they contain either material errors or immaterial errors made intentionally to achieve a particular presentation of an entity's financial position, financial performance or cash flows.
Our publication 'Ind AS – Accounting and Disclosure Guide (the guide)' is an extensive tool designed to assist companies in preparing financial statements in accordance with Indian Accounting Standards (Ind AS) and Division II of Schedule III to the Companies Act, 2013 by identifying the potential accounting ...
It is done under the administrative control of the Ministry of Corporate Affairs, Government of India. There are currently 41 accounting standards that have been published by the Council of the Institute of Chartered Accountants of India (ICAI).
| Ind As No. | Name of Indian Accounting Standard |
|---|---|
| Ind AS 1 | Presentation of Financial Statements |
| Ind AS 2 | Inventories |
| Ind AS 7 | Statement of Cash Flows |
| Ind AS 8 | Accounting Policies, Changes in Accounting Estimates and Errors |
What is GAAP? GAAP consists of a common set of accounting rules, requirements, and practices issued by the Financial Accounting Standards Board (FASB) and the Governmental Accounting Standards Board (GASB).
The International Financial Reporting Standards (IFRS) are globally acknowledged accounting standards. The Indian Accounting Standards (IND AS) are the Indian adaptation of the IFRS.
What is IND as for accounting for investment?
(a) If the investment becomes a subsidiary, the entity shall account for its investment in accordance with Ind AS 103, Business Combinations, and Ind AS 110. (ii) the carrying amount of the investment at the date the equity method was discontinued.
IAS 41 establishes the accounting treatment for biological assets during their growth, degeneration, production and procreation, and for the initial measurement of agricultural produce at the point of harvest.
Impact of Ind AS
The reported financial statements of companies are likely to undergo significant changes. This will make the comparability between financials under revised accounting standards and those under Indian GAAP difficult.
Ind AS 103 provides guidance on accounting for business combinations under the acquisition method. A business combination is a transaction or other event in which a reporting entity (the acquirer) obtains control of one or more businesses (the acquiree).
31 An entity shall recognise revenue when (or as) the entity satisfies a performance obligation by transferring a promised good or service (ie an asset) to a customer. An asset is transferred when (or as) the customer obtains control of that asset.
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