Difference between IFRS and IND AS

IFRS stands for International Financial Reporting Standards, It is prepared by the IASB (International Accounting Standards Board). It is used in around 144 countries and is regarded as one of the most popular accounting standards.

IND AS is also known as Indian Accounting Standards or Indian version of IFRS. Indian AS or IND AS is used in the context of Indian companies.

Let us look at some of the points of difference between the 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

IASB (International Accounting Standards Board)

MCA (Ministry of Corporate Affairs)

Followed by

144 countries across the world

Followed only in India

Disclosure

Companies complying with IFRS have to disclose as a note that the financial statements comply with IFRS

Such a disclosure is not mandatory for companies complying with Indian Accounting Standards or IND AS

Financial Statement Components

It includes the following

1. Statement of financial position

2. Statement of profit and loss

3. Statement of changes in equity for the period

4. Statement of cash flows for the period

It includes the following:

1. Balance Sheet

2. Profit and loss account

3. Cash flow statement

4. Statement of changes in equity

5. Notes to financial statements

6. Disclosure of accounting policies

Balance Sheet Format

Companies complying with IFRS need have specific guidelines for preparing balance sheet with assets and liabilities to be classified as current and non-current

Companies complying with IND AS need have no such requirements for balance sheet format, but the guidelines are defined for presenting balance sheet

This article was all about the topic of difference between IFRS and IND AS, which is an important topic for Commerce students. For more such interesting articles, stay tuned to BYJU’S.

Top Differences in Commerce

Leave a Comment

Your Mobile number and Email id will not be published. Required fields are marked *

*

*