ASSIGNMENT 6

ACCOUNTING AND FINANCE (MBA 601)

ACCOUNTING STANDARDS: INTERNATIONAL, US GAAP AND

INDIAN AND THEIR COMPARISON

Group 5:

APOORV AGARWAL (19125011)

ARUN GOYAL (19125013)
ITTI SINGH (19125023)
RUBIN JOSEPH (19125031)
VAIBHAV BAJPAI (19125048)
Full forms Used:
IFRS: International Financial Reporting Standard
IAS: International Accounting Standards
IASB: International Accounting Standards Board
Ind AS: Indian Accounting Standards
ICAI: Institute of Chartered Accountants of India (Indian Statutory Body)
US GAAP: United States Generally Accepted Accounting Principles
FASB: Financial Accounting Standards Board (Private Non-Profit Body)
FASAB: Federal Accounting Standards Advisory Board (US Statutory Body)
SFFAS: Statement of Federal Financial Accounting Standards

International Financial Reporting Standards (IFRS) by IASB

IFRS No. Name

IFRS 1 First-time Adoption of International Financial Reporting Standards-2008
IFRS 2 Share-based Payment -2004
IFRS 3 Business Combinations -2008
IFRS 4 Insurance Contracts (Will be superseded by IFRS 17 as of 1 January 2021)-2004
IFRS 5 Non-current Assets Held for Sale and Discontinued Operations -2004
IFRS 6 Exploration for and Evaluation of Mineral Assets-2004
IFRS 7 Financial Instruments: Disclosures -2005
IFRS 8 Operating Segments -2006
IFRS 9 Financial Instruments -2014
IFRS 10 Consolidated Financial Statements -2011
IFRS 11 Joint Arrangements -2011
IFRS 12 Disclosure of Interests in Other Entities -2011
IFRS 13 Fair Value Measurement -2011
IFRS 14 Regulatory Deferral Accounts -2014
IFRS 15 Revenue from Contracts with Customers -2014
IFRS 16 Leases -2016
IFRS 17 Insurance Contracts -2017

International Accounting Standards (IAS) by IASB

IAS No. Name

IAS 1 Presentation of Financial Statements -2007
IAS 2 Inventories -2005
Consolidated Financial Statements
IAS 3
(Superseded in 1989 by IAS 27 and IAS 28)-1976
IAS 4 Depreciation Accounting - Withdrawn in 1999
Information to Be Disclosed in Financial Statements
IAS 5
(Superseded by IAS 1 effective 1 July 1998) - 1976
Accounting Responses to Changing Prices
IAS 6
(Superseded by IAS 15, which was withdrawn December 2003)
IAS 7 Statement of Cash Flows - 1992
IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors-2003
Accounting for Research and Development Activities
IAS 9
(Superseded by IAS 38 effective 1 July 1999)
IAS 10 Events after the Reporting Period - 2003
Construction Contracts
IAS 11
(Will be superseded by IFRS 15 as of 1 January 2018)-1993
IAS 12 Income Taxes -1996
Presentation of Current Assets and Current Liabilities
IAS 13
(Superseded by IAS 1 effective 1 July 1998)
Segment Reporting
IAS 14
(Superseded by IFRS 8 effective 1 January 2009)-1997
Information Reflecting the Effects of Changing Prices
IAS 15
(Withdrawn December 2003) - 2003
IAS 16 Property, Plant, and Equipment -2003
Leases
IAS 17
(Will be superseded by IFRS 16 as of 1 January 2019)-2003
Revenue
IAS 18
(Will be superseded by IFRS 15 as of 1 January 2018)-1993
Employee Benefits (1998)
IAS 19
(Superseded by IAS 19 (2011) effective 1 January 2013)-1998
IAS 19 Employee Benefits (2011) -2011
IAS 20 Accounting for Government Grants and Disclosure of Government Assistance 1983

IAS 21 The Effects of Changes in Foreign Exchange Rates -2003

Business Combinations
IAS 22
(Superseded by IFRS 3 effective 31 March 2004)-1998
IAS 23 Borrowing Costs -2007
IAS 24 Related Party Disclosures -2009
Accounting for Investments
IAS 25
(Superseded by IAS 39 and IAS 40 effective 2001)
IAS 26 Accounting and Reporting by Retirement Benefit Plans -1987
Separate Financial Statements (2011) -2011
IAS 27

Consolidated and Separate Financial Statements

IAS 27 (Superseded by IFRS 10, IFRS 12 and IAS 27 (2011) effective 1 January 2013)2003

IAS 28 Investments in Associates and Joint Ventures (2011)-2011

IAS 28 Investments in Associates
 (Superseded by IAS 28 (2011) and IFRS 12 effective 1 January 2013)-2003
IAS 29 Financial Reporting in Hyperinflationary Economies -1989
Disclosures in the Financial Statements of Banks and Similar Financial Institutions
IAS 30
(Superseded by IFRS 7 effective 1 January 2007)-1990
Interests in Joint Ventures
IAS 31
(Superseded by IFRS 11 and IFRS 12 effective 1 January 2013)-2003
IAS 32 Financial Instruments: Presentation -2003
IAS 33 Earnings per Share -2003
IAS 34 Interim Financial Reporting -1998
Discontinuing Operations
IAS 35
(Superseded by IFRS 5 effective 1 January 2005)-1998
IAS 36 Impairment of Assets -2004
IAS 37 Provisions, Contingent Liabilities, and Contingent Assets -1998
IAS 38 Intangible Assets-2004
Financial Instruments: Recognition and Measurement
IAS 39
(Superseded by IFRS 9 effective 1 January 2018 where IFRS 9 is applied)-2003
IAS 40 Investment Property -2003
IAS 41 Agriculture-2001

Indian Accounting Standards by ICAI

AS No. Name Description

Ind AS 1 Disclosure of This Standard deals with the disclosure of significant
Accounting Policies accounting policies which are followed in preparing and
presenting financial statements.
Ind AS 2 Valuation of This Standard deals with the determination of value at which
Inventories inventories are carried in the financial statements, including
the ascertainment of cost of inventories and any write-down
thereof to net realisable value.
Ind AS 3 Cash Flow The Standard deals with the provision of information about the
Statements historical changes in cash and cash equivalents of an enterprise
by means of a Cash Flow Statement which classifies cash flows
during the period from operating, investing and financing
activities.
Ind AS 4 Contingencies and This Standard deals with the treatment of contingencies and
Events Occurring events occurring after the balance sheet date.
After Balance Sheet
Date
Net profit or Loss for This Standard is to be applied by an enterprise in presenting
Ind AS 5 the period, Prior profit or loss from ordinary activities, extraordinary items and
Period Items and prior period items in the Statement of Profit and Loss, in
 Changes in accounting for changes in accounting estimates, and in
Accounting disclosure of changes in accounting policies.
Policies
Ind AS 7 Construction This Standard prescribes the accounting for construction
Contracts contracts in the financial statements of contractors.
Ind AS 9 Revenue Recognition This Standard deals with the bases for recognition of revenue
in the Statement of Profit and Loss of an enterprise. The
Standard is concerned with the recognition of revenue arising
in the course of the ordinary activities of the enterprise from:
a) Sale of goods b) Rendering of services c) Interest, royalties
and dividends.
Ind AS 10 Property, Plant and The objective of this Standard is to prescribe the accounting
Equipment treatment for property, plant and equipment (PPE).
Ind AS 11 The Effects of AS 11 lays down principles of accounting for foreign currency
Changes in Foreign transactions and foreign operations, i.e., which exchange rate
Exchange Rates to use and how to recognise in the financial statements the
financial effect of changes in exchange rates.
Ind AS 12 Government Grants This Standard deals with accounting for government grants.
Government grants are sometimes called by other names such
as subsidies, cash incentives, duty drawbacks, etc.
Ind AS 13 Accounting for This Standard deals with accounting for investments in the
Investments financial statements of enterprises and related disclosure
requirements.
Ind AS 14 Accounting for This Standard deals with accounting for amalgamations and the
Amalgamations treatment of any resultant goodwill or reserves.
Ind AS 15 Employee Benefits The objective of this Standard is to prescribe the accounting
treatment and disclosure for employee benefits in the books of
employer except employee share-based payments. It does not
deal with accounting and reporting by employee benefit plans.
Ind AS 16 Borrowing Costs This Standard should be applied in accounting for borrowing
costs. This Standard does not deal with the actual or imputed
cost of owners’ equity, including preference share capital not
classified as a liability.
Ind AS 17 Segment Reporting The objective of this Standard is to establish principles for
reporting financial information, about the different types of
products and services an enterprise produces and the different
geographical areas in which it operates.
Ind AS 18 Related Party This Standard should be applied in reporting related party
Disclosures relationships and transactions between a reporting enterprise
and its related parties.
Ind AS 19 Leases The objective of this Standard is to prescribe, for lessees and
lessors, the appropriate accounting policies and disclosures in
relation to finance leases and operating leases.
Ind AS 20 Earnings per Share AS 20 prescribes principles for the determination and
presentation of earnings per share which will improve
comparison of performance among different enterprises for
the same period and among different accounting periods for
the same enterprise.
Ind AS 21 Consolidated The objective of this Standard is to lay down principles and
Financial Statements procedures for preparation and presentation of consolidated
financial statements. These statements are intended to present
financial information about a parent and its subsidiaries as a
single economic entity to show the economic resources
controlled by the group, obligations of the group and results
the group achieves with its resources.
Ind AS 22 Accounting for Taxes The objective of this Standard is to prescribe accounting
on Income treatment of taxes on income. Taxable income may be
significantly different from the accounting income posing
problems in matching of taxes against revenue for a period.
Ind AS 23 Accounting for This Standard is to be applied in accounting for investments in
Investments in associates in the preparation and presentation of consolidated
Associates in Financial Statements (CFS) by an investor.
Consolidated
Financial Statements
Ind AS 24 Discontinuing The objective of AS 24 is to establish principles for reporting
Operations information about discontinuing operations, thereby
enhancing the ability of users of financial statements to make
projections of an enterprise's cash flows, earningsgenerating
capacity, and financial position by segregating information
about discontinuing operations from information about
continuing operations.
Ind AS 25 Interim Financial This Standard applies if an entity is required or elects to publish
Reporting an interim financial report. The objective of AS 25 is to
prescribe the minimum content of an interim financial report
and to prescribe the principles for recognition and
measurement in complete or condensed financial statements
for an interim period.
Ind AS 26 Intangible Assets AS 26 prescribes the accounting treatment for intangible
assets.
Ind AS 27 Financial Reporting of The objective of AS 27 is to set out principles and procedures
Interests in Joint for accounting for interests in joint ventures and reporting of
Ventures joint venture assets, liabilities, income and expenses in the
financial statements of ventures and investors.
Ind AS 28 Impairment of Assets The objective of AS 28 is to prescribe the procedures that an
enterprise applies to ensure that its assets are carried at no
more than their recoverable amount. The asset is described as
impaired if its carrying amount exceeds the amount to be
 recovered through use or sale of the asset and AS 28 requires
the enterprise to recognise an impairment loss in such cases. It
should be noted that AS 28 deals with impairment of all assets
unless specifically excluded from the scope of the Standard.
Ind AS 29 Provisions, The objective of AS 29 is to ensure that appropriate recognition
Contingent Liabilities criteria and measurement bases are applied to provisions and
and Contingent contingent liabilities and that sufficient information is disclosed
Assets in the notes to the financial statements to enable users to
understand their nature, timing and amount. The objective of
this Standard is also to lay down appropriate accounting for
contingent assets.

US Generally Accepted Accounting Principles by FASB

SFFAS No. Name

SFFAS 01 Accounting for Selected Assets and Liabilities.
SFFAS 02 Accounting for Direct Loans and Loan Guarantees.
SFFAS 03 Accounting for Inventory and Related Property.
SFFAS 04 Managerial Cost Accounting Standards and Concepts.
SFFAS 05 Accounting for Liabilities of The Federal Government.
SFFAS 06 Accounting for Property, Plant, and Equipment.
Accounting for Revenue and Other Financing Sources and Concepts for Reconciling
SFFAS 07 Budgetary and Financial Accounting.
SFFAS 08 Supplementary Stewardship Reporting.
Deferral of the Effective Date of Managerial Cost Accounting Standards for the Federal
SFFAS 09 Government in SFFAS No. 4.
SFFAS 10 Accounting for Internal Use Software.
Amendments to Accounting for Property, Plant, and Equipment – Definitional Changes –
Amending SFFAS 6 and SFFAS 8 Accounting for Property, Plant, and Equipment and
SFFAS 11 Supplementary Stewardship Reporting.
Recognition of Contingent Liabilities Arising from Litigation: An Amendment of SFFAS 5,
SFFAS 12 Accounting for Liabilities of the Federal Government.
SFFAS 13 Deferral of Paragraph 65.2—Material Revenue-Related Transactions Disclosures.
Amendments to Deferred Maintenance Reporting Amending SFFAS 6, Accounting for
SFFAS 14 Property, Plant and Equipment and SFFAS 8, Supplementary Stewardship Reporting.
SFFAS 15 Management’s Discussions and Analysis.
Amendments to Accounting For Property, Plant, and Equipment—Measurement and
Reporting for Multi-Use Heritage Assets: Amending SFFAS 6 and SFFAS 8 Accounting for
SFFAS 16 Property, Plant, and Equipment and Supplementary Stewardship Reporting.
SFFAS 17 Accounting for Social Insurance.
Amendments to Accounting Standards For Direct Loans and Loan Guarantees in SFFAS No.
SFFAS 18 2.
 Technical Amendments to Accounting Standards For Direct Loans and Loan Guarantees in
SFFAS 19 SFFAS 2.
Elimination of Certain Disclosures Related to Tax Revenue Transactions by the Internal
Revenue Service, Customs, and Others, Amending SFFAS 7, Accounting for Revenue and
SFFAS 20 Other Financing Sources.
Reporting Corrections of Errors and Changes in Accounting Principles, Amendment of
SFFAS 21 SFFAS 7, Accounting for Revenue and Other Financing Sources.
Change in Certain Requirements for Reconciling Obligations and Net Cost of Operations,
SFFAS 22 Amendment of SFFAS 7, Accounting for Revenue and Other Financing Sources.
SFFAS 23 Eliminating the Category National Defense Property, Plant, and Equipment.
Selected Standards for the Consolidated Financial Report of the United States
SFFAS 24 Government.
Reclassification of Stewardship Responsibilities and Eliminating the Current Services
SFFAS 25 Assessment.
Presentation of Significant Assumptions for the Statement of Social Insurance: Amending
SFFAS 26 SFFAS 25.
SFFAS 27 Identifying and Reporting Funds from Dedicated Collections.
Deferral of the Effective Date of Reclassification of the Statement of Social Insurance:
SFFAS 28 Amending SFFAS 25 and 26.
SFFAS 29 Heritage Assets and Stewardship Land.
Inter-Entity Cost Implementation: Amending SFFAS 4, Managerial Cost Accounting
SFFAS 30 Standards and Concepts.
SFFAS 31 Accounting for Fiduciary Activities.
Consolidated Financial Report of the United States Government Requirements:
Implementing Statement of Federal Financial Accounting Concepts 4 “Intended Audience
and Qualitative Characteristics for the Consolidated Financial Report of the United States
SFFAS 32 Government”.
Pensions, Other Retirement Benefits, and Other Postemployment Benefits: Reporting the
Gains and Losses from Changes in Assumptions and Selecting Discount Rates and
SFFAS 33 Valuation Dates.
The Hierarchy of Generally Accepted Accounting Principles, Including the Application of
SFFAS 34 Standards Issued by the Financial Accounting Standards Board.
Estimating the Historical Cost of General Property, Plant, and Equipment: Amending
SFFAS 35 Statements of Federal Financial Accounting Standards 6 and 23.
SFFAS 36 Comprehensive Long-Term Projections for the U.S. Government.
Social Insurance: Additional Requirements for Management’s Discussion and Analysis and
SFFAS 37 Basic Financial Statements.
SFFAS 38 Accounting for Federal Oil and Gas Resources.
Subsequent Events: Codification of Accounting and Financial Reporting Standards
SFFAS 39 Contained in the AICPA Statement on Auditing Standards.
SFFAS 40 Deferred Maintenance and Repairs: Definitional Changes.
SFFAS 41 Deferral of the Effective Date of SFFAS 38, Accounting for Federal Oil and Gas Resources.
Deferred Maintenance and Repairs: Amending Statements of Federal Financial Accounting
SFFAS 42 Standards 6, 14, 29, and 32.
SFFAS 43 Dedicated Collections: Amending SFFAS 27, Identifying and Reporting Earmarked Funds.
SFFAS 44 Accounting for Impairment of General Property, Plant, and Equipment Remaining in Use.
SFFAS 45 Deferral of the Transition to Basic Information for Long-Term Projections.
Deferral of the Transition to Basic Information for Long-Term Projections – Amending
SFFAS 46 SFFASs 36 and 45.
SFFAS 47 Reporting Entity.
Opening Balances for Inventory, Operating Materials and Supplies, and Stockpile
SFFAS 48 Materials.
 SFFAS 49 Public-Private Partnerships: Disclosure Requirements.
Establishing Opening Balances for General Property, Plant, and Equipment: Amending
Statement of Federal Financial Accounting Standards (SFFAS) 6, SFFAS 10, SFFAS 23, and
SFFAS 50 Rescinding SFFAS 35.
SFFAS 51 Insurance Programs.
SFFAS 52 Tax Expenditures.
SFFAS 53 Budget and Accrual Reconciliation.
Leases: An Amendment of Statement of Federal Financial Accounting Standards (SFFAS) 5,
Accounting for Liabilities of the Federal Government, and SFFAS 6, Accounting for
SFFAS 54 Property, Plant, and Equipment.
SFFAS 55 Amending Inter-entity Cost Provisions.
SFFAS 56 Classified Activities

Analysis and Review:

 Securities and exchange committee requires US domestic companies to use US GAAP instead
of IFRS for compliance.
 US GAAP is given by FASB and domestic US companies use it.
 US GAAP is also followed by some companies in Japan and rest of world.
 IFRS is given by IASB and is used internationally.
 IFRS is principle based whereas US GAAP is rules and procedures based.
 Indian AS or Indian GAAP is given by ICA and regulated by MCA(Ministry of Corporate Affairs).
 Indian AS are named and numbered; and are in line with IFRS.
 India followed IFRS prior to adoption of its own GAAP (Indian Accounting Standards).
 US GAAP appears to be more detailed and segmented. Individual Accounting Standards, both
by IASB and ICAI, are broken down into differentiated standards in US GAAP.
 In US GAAP, development costs are considered under expenses, whereas in IFRS, they are
capitalised.
 IAS standards were published between 1973 and 2001, while IFRS standards were published
from 2001 onwards.
 When it comes to intangible assets, such as research and development or advertising costs,
IFRS accounting comes as a principle-based method. It takes into account whether an asset
will have a future economic benefit as a way of assessing the value. Intangible assets
measured under GAAP are recognized at the fair market value and nothing more.
 Under GAAP, a company is allowed to use the Last In, First Out (LIFO) method for inventory
estimates. However, under IFRS, the LIFO method for inventory is not allowed.
 As per IFRS, revenue is shown at the fair value of money received or receivables whereas in
Ind AS, money charged for products/services and reward received comes under revenue.
Indian and International Accounting standards Comparison
Missing Indian AS from International AS:

 Indian Accounting Standards don’t have any standard for Depriciation Accounting as in IAS 4.
However, IAS 4 was also withdrawn from, International Standards in 1999.
 IAS 6 which was superceded by IAS 15, stating principle for “Information Reflecting Changing
Prices” is also absent from Indian Accounting Standards. However, it was covered by a
Guidance note of ICAI.
 IAS 9, which accounts for Research and Development activities is missing from Indian AS.
However, IAS 9 was superceded by IAS 38 (Intangible Assets), which is there in Indian AS as
well (Ind AS 26).
 IAS 13, “Representation of Current Assets and Liabilities” was initially a different International
Standard, which was later incorporated in IAS 1, “Presentation of Financial Statements”, and
therefore is not a separate standard in Indian Accounting Standards.
 IAS 29, “Financial Reporting in Hyper-inflated Economies” is missing from Indian Accounting
Standards.
 IAS 30, “Disclosures in the Financial Statements of Banks and Similar Financial
Institutions” is missing from Indian Accounting Standards
 IAS 32, “Financial Instruments: Presentation” is missing from Indian Accounting Standards.
 Although, Indian AS 13, “Accounting for Investments”, might contain some provisions for IAS
30 and 32.
 IAS 41, “Agriculture” is missing from Ind AS as per ICAI.

Indian Accounting Standards and Corresponding International Accounting

Standards:

Indian AS International Indian AS International Indian AS International

No. AS No. No. AS No. No. AS No.
Ind AS 1 IAS 1 Ind AS 13 IAS 39, 40 & 32 Ind AS 23 IAS 28
Ind AS 2 IAS 2 Ind AS 14 IAS 22 Ind AS 24 IAS 35
Ind AS 3 IAS 7 Ind AS 15 IAS 26 & 19 Ind AS 25 IAS 34
Ind AS 4 IAS 10 & 37 Ind AS 16 IAS 23 Ind AS 26 IAS 38
Ind AS 5 IAS 8 Ind AS 17 IAS 14 Ind AS 27 IAS 31
Ind AS 7 IAS 11 Ind AS 18 IAS 24 Ind AS 28 IAS 36
Ind AS 9 IAS 18 Ind AS 19 IAS 17 Ind AS 29 IAS 37
Ind AS 10 IAS 16 Ind AS 20 IAS 33
Ind AS 11 IAS 21 Ind AS 21 IAS 27
Ind AS 12 IAS 20 Ind AS 22 IAS 12
References
https://www.ifrs.org/issued-standards/list-of-standards/

https://fasab.gov/accounting-standards/document-by-chapter/

https://www.icai.org/new_post.html?post_id=2805

https://en.wikipedia.org/wiki/International_Financial_Reporting_Standards

https://en.wikipedia.org/wiki/Generally_Accepted_Accounting_Principles_(United_States)