Differences Between Ind AS and Indian Accounting Standards

1. DIFFERENCES BETWEEN IND AS AND INDIAN ACCOUNTING STANDARDS The applicability of Ind AS vs Indian Accounting Standards in India depends on a company’s net worth, listing status, and group structure. Ind AS applies to larger and listed entities aligning with global IFRS norms, while Indian GAAP (old standards) continues for smaller, unlisted companies focused on domestic reporting. Aspect Ind AS Indian Accounting Standards The objective of fair and true financial reporting remains unchanged under Ind AS; however, it brings significant changes in both approach and presentation compared to the previous Indian Accounting Standards. Shares the same objective of fair and true reporting but follows a traditional, conventional framework. Objective It is principle-based, emphasizing the underlying economic substance of transactions. Rule-based, often adhering to the legal form of transactions. Approach Fair value measurement is extensively used to reflect assets and liabilities at their true economic value. Primarily based on historical cost accounting. Measurement Values may be understated or overstated based on market fluctuations. Ensures assets and liabilities are reported at their current market value. Valuation Impact Requires companies to prepare consolidated financial statements, providing transparency for the entire corporate group. Did not require consolidation as comprehensively as the current standards. Consolidation Represents the traditional Indian accounting framework primarily intended for domestic financial reporting. Reflects India’s alignment with international best practices, strengthening investor confidence and global credibility. Overall Comparison info@skmcglobal.com www.skmcglobal.com +91 989-125-5499