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Distinguish between IFRS and AS
What are the main differences between IFRS's and AS's under Co. Act, 1956?
Replies (5)
| Significant Difference between Accounting Standards and IFRS/IAS | ||
| AS-1 Disclosure of A/c-ing Policies | ||
| Points | AS-1 | IFRS/IAS-1 |
| Statement showing changes in equity | does not prescribe such statement | F.S include statement showing changes in equity |
| presumption about fair presentation | no such presumption | application of IFRS lead to fair presentation |
| specific disclosure for departure from IFRS/AS | no such disclosure | specific disclosure |
| AS-3 Cash Flow Statement | ||
| Points | AS-3 | IFRS/IAS-7 |
| separate disclosure of Extra Ordinary Items | required | does not require |
| distinction b/w Bank borrowings & Bank overdraft | no distinction | make distinction.Bank Borrowings are considered financing activities and Bank O.D are considered part of cash equivalents. |
| AS-4 Contingencies & Event occuring after the B.S Date | ||
| Points | AS-4 | IFRS/IAS-10 |
| treatment of Proposed Dividend | treated as adjusting event | Proposed Dividend after balance sheet date but before the date of the F.S is non-adjusting event. |
| AS-5 Net Profit or Loss for the period,Extraordinary Items,Changes in A/c-ing Estimates | ||
| Points | AS-5 | IFRS/IAS-8 |
| treatment of Prior Period Items | disclosed in the F.S for the period in which the error is found.i.e. Prospective effect | Subject to practicability,an entity shall correct material prior period errors retrospectively by: (a) Restating the comparative amounts for the prior period presented in which the error occured,or (b) if the error occured before that restating the opening balances of assets,liabilities and equity. |
| Disclosure of Extraordinary Items | specifically require certain items to be disclosed as extraordinary items | prohibits any items to be disclosed as extraordinary items |
| AS-6 Depreciation Accounting | ||
| Points | AS-6 | IFRS/IAS-16 |
| Change in Depreciation method | regarded as change in an accounting policy, therefore retrospective effect required. | regarded as change in an accounting estimate, therefore retrospective effect not required. |
| AS-6 Depreciation Accounting | ||
| Points | AS-6 | IFRS/IAS-16 |
| Change in Depreciation method | regarded as change in an accounting policy, therefore retrospective effect required. | regarded as change in an accounting estimate, therefore retrospective effect not required. |
| AS-10 A/c-ing for Fixed Assets | ||
| Points | AS-10 | IFRS/IAS-16 |
| Revaluation of F.A | allowed | allowed but with detailed guidelines. |
| AS-12 A/c-ing for Government Grant | ||
| Points | AS-12 | IFRS/IAS-20 |
| measurement of non-monetary grants | does not state about Fair Value | talks about Fair Value |
| Grant in the nature of Promoter Contribution | credited to Capital Reserve | treated as deffered income |
| Refund of Govt. Grant | Extraordinary Item as per AS-5 | Change in Estimate |
| AS-9 Revenue Recognisition | ||
| Points | AS-9 | IFRS/IAS-18 |
| provision for Revenue Swaps (Exchange Transaction) | no provision | contain the provision of Revenue Swap. When goods or services are exchanged or swapped for goods or services which are of a similar nature & value, the exchange is not regared as a trxn which generates revenue. When goods or services are exchanged for dissimilar goods or services, the ex. is regarded as trxn which generate revenue. |
| AS-17 Segment Reporting | ||
| Points | AS-17 | IFRS-8 |
| Applicability | Level-1 & Non-SMEs | Enterprise whose equity or debt security are publicly traded or in the process, but does include other. |
| A/c-ing Policies | Segement information should be prepared in conformity with Accounting Policies adopted for preparation & presentation of A/c-ing policies | does not prescribe the a/c-ing policies to be used. Therefore, permits alternative basis of A/c-ing for segment. |
| AS-18 Related Party Disclosure | ||
| Points | AS-18 | IFRS/IAS-24 |
| State controlled Entities | excludes from RP | within the scope of RPD |
| Pricing Policy | no specific disclosure require | needs to be disclosed |
| AS-19 A/c-ing for Leases | ||
| Points | AS-19 | IFRS/IAS-17 |
| Applicability to use land | not applicable | applicable |
| Onerous lease | not dealt however AS-29 deals for the purpose of making provision for losses | IAS-37 deals with onerous contract |
| AS-20 Earning Per Share | ||
| Points | AS-20 | IFRS/IAS-33 |
| Share application money | treated as potential equity shares | does not specify anything |
| Disclosure | parent's seprate F.S as well as in Consolidated F.S | Consolidated F.S |
| Guidance | provides guidance on the basis of apportionment of profits over different classes of equity shares | silent about it |
| AS-21 Consolidated F.S | ||
| Points | AS-21 | IFRS/IAS-27 |
| Goodwill | determind on historical cost basis; no prescripttion for amortisation of goodwill | determined at fair value;amortisation is provided. |
| Differential period | dates of parent & subsidiary,if do not coincide should not exceed six months. | three months |
| Deferred Tax | no principle | if IT have been paid on inter company profits on assets remaining within the group,those tax are deffered until the related asset are sold in an arm's length transaction. |
| Exception | severe long term restriction | no exception |
| AS-22 A/c-ing for Taxes on Income | ||
| Points | AS-22 | IFRS/IAS-12 |
| Recognition of DTA | to the extent there is resonable or virtual certainty of income | to the extent that it is probable that the enterprise will have sufficient taxable profit. |
| Reconciliation | does not require numerical reconciliation between tax expenses and pre-tax a/c-ing profit | requires. |
| AS-23 A/c-ing for investmets in Associates in Consolidated F.S | ||
| Points | AS-23 | IFRS/IAS-28 |
| Goodwill | required to be separately identified & disclosed within the investment | does not require so |
| equity method, where? | entity prepares consolidated F.S | in separate F.S of the investor |
| AS-24 Discontinuing Operation | ||
| Points | AS-24 | IFRS-5/IAS-35 |
| Name | u know | IFRS-5 "Non current assets held for sale & discontinued operation" |
| Disclosure when | after "Initial disclosure event" | after the classification of non-current asset as 'held for sale' |
| valuation of asset | cost less depreciation | after the classification of non-current asset as 'held for sale' ,it will be carried at lower of carrying amount and fair value. |
| Disclosure | through notes to accounts.Only amount of gain or loss is disclosed on the face of P & L a/c. | A/L presented separately on the face of the B.S & income on the face of the income statement. |
| AS-26 Intangible Assets | ||
| Points | AS-26 | IFRS-5/IAS-38 |
| Revaluation of Assets | not permitted | permitted |
| AS-29 Provisions, Contingent Liabilities & Contingent Assets | ||
| Points | AS-29 | IFRS/IAS-37 |
| disclosure of Contingent Assets | not required | required |
Thanks Mr. Davanish
Bro for knowing abt the difference you need to read the standard too.. and its really good work for devanshi
Hi,
It is obvious that one has to thorough with the IFRSs by 2011.
Thnks
no most of the people wants to read only difference and trust me they are stupid
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