INDIAN GAAP VS IFRS

Abstract

Tata Motors is performing better or Toyota International!!! Chevron is performing better or Reliance!!! To answer these, we first need a single platform which is being provided by IFRS. With the business being global and an easy access to international capital market, there is need for single global reporting financial language to enhance the confidence of stakeholders, facilitate international acquisitions and to maintain quality of MIS across global industries. The International Financial Reporting Standards (IFRSs) issued by the International Accounting Standards Board (IASB) are recognized as Global Reporting Standards. Presently, Institute of Chartered Accountants of India (ICAI) formulates Accounting Standards (ASs) based on the IFRSs keeping in view the local conditions including legal and economic environment, which have been notified by the Central Government under the Companies Act, 2013. Accordingly, the ASs departs from the corresponding IFRSs to maintain consistency with legal, regulatory and economic environment, and keeping in view the level of preparedness of the industry and the accounting professionals. In some cases, departures are made because of conceptual differences with the treatments prescribed in the IFRSs.