Wednesday, 7 October 2015

IND - AS vs iGAAP (Existing Standards)



AS 1: Accounting Policies

Point of Difference
AS 1
Ind AS 1
1
Compliance with AS
Not required
Disclose
2
Extraordinary items
Disclose separately
Prohibited
3
Opening balance sheet
Not required
In case of change in policy
4
Statement of change in equity
Not required
Required
5
Statement of Other Comprehensive Income
Not required
Below P&L
6
Comparative information
Not required
Required

AS 2: Inventory

Point of Difference
AS 2
Ind AS 2
1
Inventory of Service Provider
Excluded
Included
2
Inventory of Commodity trader/ broker
Included
Excluded
3
Subsequent assessment of NRV
Covered in AS 5
Covered in Ind AS 2
4
Inventory purchased on deferred basis
Recorded at purchase price
Purchase price less interest chargeable beyond normal credit period
5
Machine spares
Defined
Defined in Ind AS 16

AS 3: Cash flow statements

Point of Difference
AS 3
Ind AS 7
1
Bank OD
Financing Activity
Cash Equivalent
2
Asset purchase and sale in rental business
Investing Activity
Operating Activity
3
Undistributed profits of associate
Not covered
Deduct from profit while calculating cash flow from OA
4
Cash flow from Extra ordinary Activity
Separately disclosed
Not covered
5
Sale of subsidiary stake without loss of control
Investing Activity
Financing Activity
6
Dividend paid in case of Financial Enterprise
Operating Activity
Financing Activity

AS 5: Change in policy, Prior period items and Change in Estimate

Point of Difference
AS 5
Ind AS 8
1
Extraordinary items
Covered
Excluded
2
Accounting for change in accounting policy
Retrospective calculation, prospective accounting
Retrospective calculation retrospective accounting
3
Change in accounting policy in case required by statute
Covered
Not covered
4
Prior period items
Accounting in current year
Accounting retrospectively
5
Disclosure requirement
Comparatively less
Comparatively more


AS 4: Events occurring after balance sheet date

Point of Difference
AS 4
Ind AS 10
1
Non Adjusting Events
Disclose in Directors report
Disclose in notes to accounts
2
Proposed dividend
Recognize in BS
Disclose in notes to accounts
3
Going concern
Restate balance sheet
Fundamental change in basis of accounting
4
Breach rectified later of long term loan arrangement
Not covered
Continue to classify as long term loan


AS 22: Income Taxes

Point of Difference
AS 22
Ind AS 12
1
Approach
Income
Balance Sheet
2
DTA related to losses and unabsorbed Depreciation
Virtual certainty with convincing evidence
Probable benefits in future
3
Disclosure
Separately
Noncurrent asset/ liability
4
Revaluation of Fixed Asset
No DTL/DTA
DTL @ sale of asset rather than through use
5
Guideline on change in tax status of entity
Not covered
Covered
6
Deferred taxes related to tax holiday period
Covered
Not covered

AS 6 & 10: Fixed Assets and Depreciation

Point of Difference
AS 6 and 10
Ind AS 16
1
Real Estate developers
Excluded
Covered
2
Initial recognition criteria
Not required
Provided
3
Major Repairs
P&L
Capitalize
4
Immaterial Assets
P&L
Capitalize
5
Component Approach
Not defined
Covered
6
Disposal cost
Not included in FA
Discounted value included in FA
7
Valuation model
Cost
Cost or Fair Value
8
Revaluation Surplus
Part of Reserves
Routed through OCI
9
Abnormal cost for Self Constructed asset
Included
Not included
10
Deferred payment of FA
Purchase price
Purchase price less discount given beyond normal credit period
11
Review of Residual value
Not covered
Every year
12
Change in depreciation method
Change in policy
Change in Estimate
13
Asset held for disposal
Covered
Covered under Ind AS 105
14
Exchange of asset
BV or FV of asset given up whichever is more clearly evident
FV of asset given up or received whichever is more clearly evident

AS 15: Employee Benefits
  
Point of Difference
AS 15
Ind AS 19
1
Constructive (Assumed) Obligation
Not Covered
Covered
2
Directors in Definition
Only whole time
All
3
Short term employee benefit
Due within 12 months from date of rendering service
Due within 12 months from date of reporting date
4
Surplus funds accounting in Multi employer plan
Not covered
Covered
5
Contribution to multi employer fund
Not related party
Related party transaction
6
Actuary valuation
Over regular interval
Ones in every three years
7
Actuarial gains/ losses
Recognized In P&L
Recognized In OCI

AS 19: Leases
  
Point of Difference
AS 19
Ind AS 17
1
Land Lease
Not Covered
Covered
2
Property other than investment property held for operating lease
Not Covered
Covered
3
Biological asset other than Agriculture Activity
Not covered
Covered
4
Initial transaction cost for Mfg./ Dealer
P&L
OL- Amortize
FL- P&L
5
Initial transaction cost for Others
Option to Amortize or charge to P&L
Amortize
6
Cost incurred between inception and commencement of lease
Not covered
Covered
7
Accounting for incentives
Not defined
Defined
8
Escalation in lease rent under Operating lease
Straight lined
Other than related to inflation straight lined

AS 12: Government Grant
  
Point of Difference
AS 12
Ind AS 20
1
Government Assistance
Not Covered
Covered
2
Non Depreciable asset received at concessional price
Nominal Value
Fair Value
3
Deferment of Govt. Grant related to non depreciable asset
Not required
Covered
4
Deferment of Govt. Grant related to Promoters Contribution
Not required
Covered
5
Loans at concessional rate
Recognized at full amount
Recognized at discounted amount

AS 11: Foreign Exchange Fluctuation
  
Point of Difference
AS 11
Ind AS 21
1
Forward Exchange Contracts
Covered
Not covered
2
FCMITDA
Covered
Not Covered
3
Currency Type
1.       Reporting Currency
2.       Foreign Currency
1.       Functional Currency
2.       Presentation Currency
3.       Foreign Currency

AS 16: Borrowing Cost
  
Point of Difference
AS 16
Ind AS 23
1
Fair Value Assets
Not Excluded
Not covered
2
Repetitive inventory
Covered
Not Covered
3
Interest rate
Weighted Avg. for GL and Specific for SL
Effective interest rate
4
Substantial period of time
Not Defined
Defined
5
Disclosure of Capitalization rate
Not required
Required

AS 18: Related Party Disclosure
  
Point of Difference
AS 18
Ind AS 24
1
Domestic Partner
Not covered
Covered
2
State Controlled Enterprise
Control of CG/SG
Control or Significant influence of CG/SG
3
KMP of holding in case of subsidiary
Not covered
Covered
4
JV to JV, JV to Associate
Not Covered
Covered
5
Post Employment Plans
Not covered
Covered
6
Compensation to KMP
Disclose in aggregate
Disclose each type separately
7
Govt. Related Entities
Exempted
Covered




AS 20: Earnings Per Share
  
Point of Difference
AS 20
Ind AS 33
1
Options related to own share
Not covered
Covered
2
Basic and Diluted EPs of Continuing and Discontinued Operations
Aggregate
Separately
3
Extra Ordinary Items
Separately
Not covered

AS 25: Interim Financial Reporting
  
Point of Difference
AS 25
Ind AS 34
1
Compliance
If interim report prepared
Interim report not necessarily as per Ind AS 34
2
Change in Equity
Not Required
Required
3
Reversal of Impairment Loss related to Goodwill
Permitted
Not permitted
4
Parents Separate Financial Statements in case of CFS
Present both
Separate financial statement not required
5
Dividend related to equity and other shares
Aggregate
Separately
6
Contingent Assets
Not disclosed
Disclosed
7
Extraordinary items
Required
Prohibited
8
Comparatives in case of change in policy
Not revised
Revised

AS 28: Impairment Loss
  
Point of Difference
AS 28
Ind AS 36
1
Financial assets like subsidiary, JV and Associate
Not covered
Covered
2
Biological Assets
Not excluded
Agriculture related not covered
3
Intangible Asset with indefinite Life
Not tested every year
Tested for impairment every year
4
Reversal of Goodwill
Permitted
Not permitted
5
Bottom up and Top down test
Covered
Not covered as goodwill is always allocable

AS 29: Contingent Liabilities
  
Point of Difference
AS 29
Ind AS 37
1
Constructive Obligation
Not Covered
Covered
2
Discounting
Prohibited
Permitted
3
Contingent Assets
Not disclosed
Disclosed
4
Onerous Contracts
No specific guidelines
IL to be provided

AS 26: Intangible Assets
  
Point of Difference
AS 26
Ind AS 38
1
Definition
Held for use in admin or production or rental
No such requirement
2
Assumed probable benefit
No such assumption
If IA is purchased
3
Payment on deferred basis
Recorded at purchase price
Purchase price less interest
4
Exchange of assets
No guidelines
FV of asset given
5
Government Grant
Recorded at nominal value
Fair Value
6
Indefinite Life asset
Amortized within 10yrs
Not amortized, tested for impairment
7
Cessation, de-recognition guidelines
Not provided
Provided
8
Fair Value model
Not given
Given
9
Amortization over Useful life vs. legal life
Legal life
Useful life
10
Residual value
Not checked annually
Checked annually, no amortization if value more than CA

AS 13: Investments
  
Point of Difference
AS 13
Ind AS 40
1
Coverage
All type of Investments
Only properties

AS 24: Discontinuing Operations
  
Point of Difference
AS 24
Ind AS 105
1
Scope
Discontinuing Operations
Discontinued Operations and Asset Held For Sale
2
Cash flow statement
Separate disclosure
No such requirement
3
Time period
Not defined
12 months
4
Initial Disclosure Event
Defined
Not required
5
Measurement of Asset held for disposal
Defined in AS 10
Cost or FV wel
6
Abandonment of Asset
Considered as discontinuing
Disclosed Separately
7
Reclassification as continued asset
Not defined
Defined

AS 17: Segment Reporting
  
Point of Difference
AS 17
Ind AS 108
1
Identification of Segment
Risk and Return Approach
Management Approach
2
Basis of Measurment
As per accounting policies defined
As defined by Chief Operating Decision Maker
3
Aggregation criteria
Not defined
Defined
4
Single reportable segment
No disclosure
Certain disclosures
5
Interest Expense
Not presented
Presented

AS 7 & 9: Construction Contracts and Revenue Recognition
  
Point of Difference
AS 7 & 9
Ind AS 115
1
Dividend and interest income
Covered
Not covered
2
Revenue Recognition
Risk and return transferred
Control is transferred

AS 27: Joint Venture
  
Point of Difference
AS 27
Ind AS 111
1
Type
1.     Jointly controlled operations
2.     Jointly controlled assets
3.     Jointly controlled entities
1.     Joint operation
2.     Joint venture
2
Equity method
Only proportionate consolidation method
Equity method defined
3
Near future disposal
Considered joint venture
Not considered joint venture
4
Applicability
Only in case of CFS
Applied in other than separate financial statements
5
Post acquisition reserves
Disclosed
No such requirement


AS 21: Consolidation
  
Point of Difference
AS 21
Ind AS 110
1
Mandatory
No
Yes
2
Control
One half of voting rights
Investor controls investee
3
More than one parent
Disclose
Cannot be more than one parent
4
Difference in reporting dates
Not more than 6 months
3 months
5
Non controlling interest
Presented separately other than equity and liability
Presented separately in equity
6
Potential voting rights
Not covered
Defined
7
Temporary investment
Not considered subsidiary
No such exemption

AS 23: Investment in Associate
  
Point of Difference
AS 23
Ind AS 28
1
Significant influence
Does not include joint control
Includes joint control
2
Potential equity shares
Not considered
Considered
3
Equity method
Only if CFS prepared
Statement other than separate financial statement
4
Exemption
If fund transfer restriction
No such exemption
5
Near future saleable
Not considered as Associate
Covered under Ind AS 105
6
Difference in reporting dates
Can be any period
3 months
7
Uniform accounting policies
Not necessary
required

AS 14: Amalgamation
  
Point of Difference
AS 14
Ind AS 103
1
Method of accouting
Pooling of interest and purchase method
Purchase method
2
Asset and liability under purchase method
Cost of fair value
Fair value
3
Amortization of goodwill
5yrs
Not amortized
4
Reverse acquisition
Not covered
covered
5
Contingent consideration
Not Covered
Covered
6
Bargain purchase gain
Capital Reserve
Other Comprehensive income


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