Table of Contents
- 1 What do you mean by IND as differentiate between IFRS and Ind AS?
- 2 What is the importance of IFRS?
- 3 Why would it be beneficial to narrow international differences in accounting rules for accounting and reporting?
- 4 How Ind AS is different from AS?
- 5 Why do we need IFRS in India?
- 6 What are the benefits of achieving the convergence with IFRS?
- 7 Why is IND as needed?
- 8 What is the difference between IFRS and Indian Accounting Standards?
- 9 Is India ready for IFRS?
What do you mean by IND as differentiate between IFRS and Ind AS?
Indian AS or IND AS is used in the context of Indian companies….Difference between IFRS and IND AS.
| IFRS | IND AS |
|---|---|
| Definition | |
| IFRS stands for International Financial Reporting Standards, it is an internationally recognised accounting standard | IND AS stands for Indian Accounting Standards, it is also known as India specific version of IFRS |
| Developed by |
What is the importance of IFRS?
IFRS Standards bring transparency by enhancing the international comparability and quality of financial information, enabling investors and other market participants to make informed economic decisions.
Why would it be beneficial to narrow international differences in accounting rules for accounting and reporting?
The three main advantages of a single set of international accounting standards are (1) an increased comparability between firms, which reduces investor risk and facilitates cross-border financing and investment; (2) a reduction in the cost of preparing consolidated financial statements for multinational firms; and (3) …
What is the basic difference between IFRS and accounting standards issued by ICAI?
What is the basic difference between IFRS and Accounting Standards (AS) issued by ICAI (Institute of Chartered Accountants of India) IFRS are based on Fair Value Concept whereas Accounting Stanedards are based on Historical Cost Concept.
What is the difference between AS and Ind AS?
Disclosure of Accounting Policies IND AS 1 deals with presentation of financial statements. AS 1 deals with disclosure of accounting policies. Scope is wider.
How Ind AS is different from AS?
Ind-AS (Indian Accounting Standards as converged with IFRS) Ind-AS generally use the word –“shall” in its guidance, which makes it more strict. Ind-AS provide guidance on various transactions like agriculture, business combinations etc. These guidances were not existing in AS.
Why do we need IFRS in India?
Purpose of IFRS: As per Indian Generally Accepted Accounting Principles (I-GAAP), the revenues are computed net of excise and duties, and the current investment is valued at cost or market value. The main purpose of implementing IFRS is that it shall lower the cost of capital and bring in new opportunities.
What are the benefits of achieving the convergence with IFRS?
Benefits of Convergence
- Beneficial to the Economy. If the accounting standards are converged it will promote international business and increase the influx of capital into the country.
- Beneficial to Investors.
- Beneficial to the Industry.
- More Transparency.
- Cost Saving.
What is IND as ICAI?
ICAI – The Institute of Chartered Accountants of India. Right to Information Act.
What is the purpose of Ind AS?
Ind AS or Indian Accounting Standards govern the accounting and recording of financial transactions as well as the presentation of statements such as profit and loss account and balance sheet of a company. Ind AS has been evolved as a compromise formula that tries to harmonise Indian accounting rules with the IFRS.
Why is IND as needed?
Ind AS i.e., Indian Accounting Standards can be taken as standards for the International Financial Reporting Standards (IFRS) to ensure that Indian Companies are globally accessible and principles adopted are understandable.
What is the difference between IFRS and Indian Accounting Standards?
Thus, a broad differentiation of Indian accounting standards and IFRS is given in the above context. IFRS stands for the International Financial Reporting Standards. The term is developed by the International Accounting Standards Board (IASB).
Is India ready for IFRS?
India, one of the fastest growing global economies is on the verge of converging with International Financial Reporting Standards (IFRS). As on date 123 countries across the globe have converged with IFRS, India is soon to join the bandwagon.
What is the difference between ICAI and IFRS?
Issuing Body: The Indian Accounting standards are issued by the Institute of Chartered Accountants of India (ICAI). On the other hand, the International Financial Standards (IFRS) is issued by the International Accounting Standards Board (IASB) which is based in London.
What is the importance of international accounting standards to a company?
It helps the competitors across nations to judge the financial positions of each other. Transparency: It is also related to comparability as the universal standards make the financial statements more transparent.