Ind AS vs IFRS: Complete Guide for Indian Accountants

 Ind AS vs IFRS

 Ind AS vs IFRS

Ind AS and IFRS follow the same broad principles‑based approach, but Ind AS is IFRS adapted to Indian legal, tax, and regulatory realities, so there are important carve‑outs and extra guidance.

Big Picture

IFRS: Global standards issued by IASB, used (or permitted) in 140+ countries for cross‑border comparability.

Ind AS: Indian Accounting Standards notified by MCA, largely converged with IFRS but modified for Indian law, RBI/SEBI rules, and local practices.

Applicability: Ind AS mandatory for listed and large Indian companies (net worth thresholds), while IFRS applies in many foreign jurisdictions or at group level for foreign parents.

Topic‑wise Differences

1. Revenue Recognition (Ind AS 115 vs IFRS 15)

• Both use the 5‑step model based on transfer of control, but Ind AS 115 has India‑specific guidance, especially for real estate and certain long‑term contracts.
• Differences can arise in how performance obligations are identified and in timing for construction/real‑estate projects.

2. Leases (Ind AS 116 vs IFRS 16)  

• Both bring most leases on balance sheet for lessees (ROU asset + lease liability), but Ind AS 116 includes some additional Indian provisions and practical reliefs.
• Disclosures and certain transitional options may differ slightly due to MCA/ICAI decisions.

3. Financial Instruments (Ind AS 109 vs IFRS 9)

• Classification/measurement categories (amortized cost, FVOCI, FVTPL) and ECL impairment model are aligned.
• Ind AS may have extra disclosures and tweaks for Indian banks/NBFCs and regulatory constraints.

4. Presentation & Disclosures (Ind AS 1, 7, 101 etc.)

• Ind AS prohibits extraordinary items and mandates detailed formats consistent with Companies Act Schedule III.
• IFRS allows more flexibility in format and, while extraordinary items are discouraged, presentation isn't tied to a statutory format.

5. Investment Property & PPE (Ind AS 40, 16 vs IAS 40, IAS 16) 

• Ind AS 40 generally uses the cost model with fair value in notes only, whereas IFRS can use either cost or fair value model in the financials.
• Revaluation of PPE is permitted under both, but Ind AS links useful lives and residual values to Indian guidance (e.g., Schedule II).

6. Convergence & Roadmap (Good background section)  

• Explain the MCA 2015 notification and phased implementation (large/listed companies first) and the objective of better global comparability for Indian companies.