Wiley International Trends in Financial Reporting under IFRS: Including Comparisons with US GAAP, Chinese GAAP, and Indian GAAP

APPENDIX D

Comparison of IFRS with India accounting standards

In an effort to converge with International Financial Reporting Standards (IFRS), the Ministry of Corporate Affair (MCA), Government of India released 35 India accounting standards (known as “Ind AS”) on February 25, 2011, without announcing the date on which these would be applicable. These Ind AS contain a number of deviations from IFRS that may be segregated into five broad categories.

• Category 1: Deviations from IFRS that result in Ind AS financial statements not being in compliance with IFRS. For example, under IFRS, a foreign currency convertible bond is treated as a hybrid instrument having a liability and a derivative component. Ind AS 32 requires that the derivative component is treated as equity, if the exercise price is fixed in any currency.
• Category 2: Removal of Options. Ind AS financial statements are compliant with IFRS, although accounting treatment choices are eliminated or minimised. For example, International Accounting Standard (IAS) 40 permits both the cost and the fair value model for subsequent measurement of investment properties. Ind AS 40 does not permit the use of the fair value model.
• Category 3: Additional options provided under Ind AS. The financial statements do not remain compliant with IFRS if the entity has chosen these options. For example, Ind AS 101 allows a first-time adopter to use the transitional date circumstances to measure noncurrent assets held for sale and discontinued ...