for Semester 3rd

1. “PROJECT ON THE COMPARATIVE STUDY ON INDIAN
ACCOUNTING STANDARD V/S IFRS”
Master of Commerce
Semester- III
(2016-2017)
Submitted
In Partial Fulfillment of the requirements
For the award of degree of
M.Com
By
Tushar Madhukar Bhuwad
Seat No.
Tolani College of Commerce
Sher – E – Punjab Society,
Andheri (East)
Mumbai- 400 065

2. CERTIFICATE
This is to certify that Tushar Madhukar Bhuwad student of M.Com Semester III
(2016-2017) has successfully completed the project on “The comparative study on
Indian Accounting Standard V/S IFRS” under the guidance of Prof. Ishtiyaq
chiplunkar.
Project Guide: ________________________
Course Coordinator: ________________________
External Examiner: _________________________
Principal: _________________________

3. DECLARATION
I Tushar Madhukar Bhuwad the student of M.Com Semester – III (2016-2017)
hereby declare that. I have completed the project on “The comparative study on Indian
Accounting Standard V/S IFRS” in the course Advanced Financial Management. The
information submitted is true and original to the best of my knowledge. References
have been cited wherever necessary.
Date:-
Place: - Mumbai
Signature of Student
(Tushar Madhukar Bhuwad)

4. ACKNOWLEDGEMENT
Preparing the project on “The comparative study on Indian Accounting Standard
V/S IFRS” Has given me extensive practical knowledge related to the course.
I would like to first thank our Principal Dr. Vijaya Krishna, for his valuable
support in preparing this project.
I express my deep sense of Gratitude to the course Co-coordinator, Prof. Sadhana
Venkatesh for the valuable guidance and support during my project work.
I am thankful to my guide Prof. Ishtiyaq Chiplunkar for providing me the
guidance throughout the course of this project. I am also thankful to his for patiently
and critically evaluating the content of this project.
I would like to take this opportunity to express my gratitude to all the staff of
library and the Computer Lab for their support.

5. Index
Sr.
No.
Particulars Page no.
1 Introduction 1
2 Review of Literature 2
3 History of Indian Accounting standards and Applicability 3-5
4 History of International Financial Reporting Standards and
Applicability
6-9
5 Appendix (Comparison of Ind AS with IFRS) 10-16
6 Article related to Indian Accounting Standard 17
7 Conclusion 18
8 Bibliography 19

6. 1
Introduction
India, one of the fastest growing global economies is on the verge of converging with
International Financial Reporting Standards (IFRS). As on date 123 countries across the globe
have converged with IFRS, India is soon to join the bandwagon.
The Ministry of Corporate Affairs in its press release dated 25.2.2011 notified 35 Indian
Accounting Standards converged with International Financial Reporting Standards (henceforth
called Draft IND AS). The Ministry of Corporate Affairs will implement the IFRS converged
Indian Accounting Standards in a phased manner after various issues including tax related issues
are resolved with the concerned Departments. Consequently, the companies listed outside but
carrying their operations `in India will need to convert their accounts from Indian GAAP to IFRS
while some of the companies would like to see how their how their present financial statements
would look if these were prepared as per IFRS. Though, there has been considerable delay in the
implementation of these standards, efforts are on the run. The newly revised Schedule VI which
is completely based on IAS 1 is a clear evidence of being optimistic on convergence with IFRS.
While similarities between the Indian Accounting standards and IFRS do exist, the
changes required to convert to international standards are both numerous and complex. It is
essential for companies and finance professionals to initiate their IFRS learning curve and to
begin the design of IFRS adoption strategy.

7. 2
Review of Literature
This project review about how India has set a roadmap for convergence with
International Financial Reporting Standards (IFRS) commencing from 1 April, 2011. The
convergence with IFRS standards is set to change the landscape for financial reporting in India.
IFRS represents the most commonly accepted global accounting framework as it has been
adopted by more than 100 countries. With the growth of Indian Economy and increasing
integration with the global economies, Indian corporate is raising capital globally. Under the
circumstances, it would be imperative for Indian corporate to adopt IFRS for their financial
reporting. While the Core Group of Ministry of Corporate Affairs (MCA) has recommended
convergence to IFRS in a phased manner from 1st April, 2011 Indian corporate having global
aspirations should consider earlier voluntary adoption. While there are several similarities
between Indian GAAP and IFRS, still there are differences which can have significant impact on
the financial statements. This project is aim to bring out such aspects and a comparative analysis
on Indian Accounting standard vis-à-vis IFRS.
Objective of the Study
The primary objective of study is explaining the deference between the International
Financial Regulation Standard (IFRS) and Indian Accounting standard principles (GAAP). This
study also aims to find out the contribution of IFRS and Indian Accounting standard. In setting
accounting standard.

8. 3
History of Indian Accounting and IFRS
A) History of Indian Accounting standards
Indian Accounting Standards (abbreviated as Ind-AS) in India accounting standards were
issued under the supervision and control of Accounting Standards Board (ASB), which was
constituted as a body in the year 1977. ASB is a committee under Institute of Chartered
Accountants of India (ICAI) which consists of representatives from government department,
academicians, other professional bodies viz. icsi, icai, representatives from ASSOCHAM, CII,
FICCI, etc.
The Ind AS are named and numbered in the same way as the corresponding International
Financial Reporting Standards (IFRS).National Advisory Committee on Accounting
Standards (NACAS) recommends these standards to the Ministry of Corporate Affairs (MCA).
MCA has to spell out the accounting standards applicable for companies in India. As on date
MCA has notified 39 Ind AS. This shall be applied to the companies of financial year 2015-16
voluntarily and from 2016-17 on a mandatory basis. Based on the international consensus, the
regulators will separately notify the date of implementation of Ind-AS for the banks, insurance
companies etc. Standards for the computation of Tax have been notified as ICDS in February
2015.

9. 4
Applicability of Indian Accounting Standards (Ind AS)
Voluntary compliance
Any company may comply with Indian AS for Financial statements beginning with
period on or after 1st
April 2015, with the comparatives of period ending on 31st
March, 2015, or
thereafter.
Mandatory Compliance
It is mandatory for the following companies to comply with Indian AS for financial
statements beginning with period on or after 1st
April 2016, with the comparatives of period
ending on 31st
March, 2016, or thereafter.
 Companies whose securities are listed or are in process of listing in any stock exchange
in India or outside India and having net worth of Rs. 500 crore or more;
 Companies other than above and having net worth of Rs. 500 Crore or more;
 Holding, subsidiaries, joint venture or associates of above companies.
It is also mandatory for the following companies to comply with Indian AS for financial
statements beginning with period on or after 1st
April 2017, with the comparatives of period
ending on 31st
March, 2016, or thereafter.
 Companies whose securities are listed or are in process of listing in any stock exchange
in India or outside India and having net worth of less than Rs. 500 crore or more;
 Companies other than above and having net worth of Rs. 250 Crore but less than Rs. 500
Crore or more;
 Holding, subsidiaries, joint venture or associates of above companies.
 Securities listed or in process of listed in SME Exchange are not included in above
companies.
 The net worth is calculated based on standalone financial statements of company as on
31st
March 2014 or first audited financial statements after this date.

10. 5
 The companies which were not in existence or exiting companies falling under above
rules of applicability of AS, the net worth is calculated based on the first audited financial
statements ending after that date. If these companies are meeting the net worth limit for
first time at the end of financial year, then they shall follow the Indian AS from next
accounting year. For example if the companies meet the net worth limit as on 31st
march
2017 then the Ind AS will be applicable from financial year 2017-18.
 Ind AS will be applied to both standalone financial statements and consolidated financial
statements.
 Overseas subsidiaries, associates, joint ventures and other similar entities of an Indian
company may prepare its standalone financials statements in accordance to requirement
of specific jurisdiction.
 Once any Indian company applies Ind AS voluntarily or mandatory, then it must follow
them consistently for future years.
Exemptions
The insurance companies, banking companies and non-banking finance companies shall
not be required to apply Indian Accounting Standards (Ind AS) for preparation of their financial
statements either voluntarily or mandatory as specified in sub-rule (1) of rule 4.
General Instruction for application of Ind As as per Rule 3
(1) Indian AS is intended to be in conformity with the provisions of laws. However, if due to
amendments in the law, a particular Indian AS is found to be not in conformity with such law,
the provisions of the said law shall prevail and the financial statements shall be prepared in
conformity with such law.
(2) Indian AS is intended to apply only to items which are material.
(3) The Indian AS having paragraphs in bold italic type and plain type, have equal authority.
Paragraphs in bold italic type just indicate the main principles of the particular AS.

11. 6
B) History of International Financial Reporting Standards
International Financial Reporting Standards (IFRS) are designed as a common global
language for business affairs so that company accounts are understandable and comparable
across international boundaries. They are a consequence of growing international shareholding
and trade and are particularly important for companies that have dealings in several countries.
They are progressively replacing the many different national accounting standards. They are the
rules to be followed by accountants to maintain books of accounts which are comparable,
understandable, reliable and relevant as per the users internal or external.
IFRS, with the exception of IAS 29 Financial Reporting in Hyperinflationary
Economies and IFRIC 7 Applying the Restatement Approach under IAS 29, are authorized in
terms of the historical cost paradigm. IAS 29 and IFRIC 7 are authorized in terms of the units of
constant purchasing power paradigm.
IFRS began as an attempt to harmonize accounting across the European Union but the value
of harmonization quickly made the concept attractive around the world. However, it has been
debated whether or not de facto harmonization has occurred. Standards that were issued by IASC
(the predecessor of IASB) are still within use today and go by the name International Accounting
Standards (IAS), while standards issued by IASB are called IFRS. IAS was issued between 1973
and 2001 by the Board of the International Accounting Standards Committee (IASC). On 1 April
2001, the new International Accounting Standards Board (IASB) took over from the IASC the
responsibility for setting International Accounting Standards. During its first meeting the new
Board adopted existing IAS and Standing Interpretations Committee standards (SICs). The IASB
has continued to develop standards calling the new standards "International Financial Reporting
Standards".

12. 7
Applicability of International Financial Reporting Standards
Voluntary Compliances
Companies can voluntarily adopt Ind AS for accounting periods beginning on or after 1
April 2015 with comparatives for period ending 31 March 2015 or thereafter. However, once
they have chosen this path, they cannot switch back.
Mandatory Compliances
Phase I
Ind AS will be mandatorily applicable to the following companies for periods beginning
on or after 1 April 2016, with comparatives for the period ending 31 March 2016 or thereafter
 Companies whose equity and/or debt securities are listed or are in the process of listing on any stock
exchange in India or outside India and having net worth of 500 crore INR or more.
 Companies having net worth of 500 crore INR or more other than those covered above.
 Holding, subsidiary, joint venture or associate companies of companies covered above.
Phase II
Ind AS will be mandatorily applicable to the following companies for periods beginning
on or after 1 April 2017, with comparatives for the period ending 31 March 2017 or thereafter:
1. Companies whose equity and/or debt securities are listed or are in the process of being listed on any
stock exchange in India or outside India and having net worth of less than rupees 500 Crore.
2. Unlisted companies other than those covered in Phase I and Phase II whose net worth are more than
250 crore INR but less than 500 crore INR.
3. Holding, subsidiary, joint venture or associate companies of above companies.
Clarifications
The notification has clarified many previously open questions, some of which have been
described below:

13. 8
Net worth
 It has been clarified that net worth will be determined based on the standalone accounts of the
company as on 31 March 2014 or the first audited period ending after that date.
 Net worth has been defined to have the same meaning as per section 2(57) of the Companies Act,
2013. It is the aggregate value of the paid-up share capital and all reserves created out of the profits
and securities premium account, after deducting the aggregate value of the accumulated losses,
deferred expenditure and miscellaneous expenditure not written off, as per the audited balance
sheet, but does not include reserves created out of revaluation of assets, write-back of depreciation
and amalgamation.
Standalone and consolidated financial statements
 It is now clear that Ind AS will apply to both consolidated and stand-alone financial statements of a
company covered by the roadmap. This is helpful as companies will not have to maintain dual
accounting systems.
Foreign operations
 It is a relief that an overseas subsidiary, associate or joint venture of an Indian company is not
required to prepare its stand-alone financial statements as per the Ind AS, and instead, may continue
with its jurisdictional requirements. However, these entities will still have to report their Ind AS
adjusted numbers for their Indian parent company to prepare consolidated Ind AS accounts.
Applicability to insurance, banking and non-banking financial companies
 Insurance, banking and non-banking financial companies shall not be required to apply Ind AS
either voluntarily or mandatorily. However, it appears (though not clarified), that if these entities are
subsidiaries, joint venture or associates of a parent company covered by the roadmap, they will have
to report Ind AS adjusted numbers for the parent company to prepare consolidated Ind AS accounts.
Early adoption of standards
 The debate on two of the most significant standards, revenue recognition and financial instruments
has now been settled with them being notified. Interestingly, India will be one of the first countries
to mandatorily adopt these standards from 1 April 2015 while the rest of the world will follow from

14. 9
2017. These two standards will have a significant effect on entities, impacting not only their
financial results but also catalysing numerous organizational and business changes.
Others
 There was hope that companies will be given an option to prepare their financial statements as per
IFRS issued by the IASB (the true IFRS), which has been now ruled out.
 The rules specify that in case of conflict between Ind AS and a law, the provisions of the law shall
prevail and the financial statements shall be prepared in conformity with it.
With IFRS set to become the future Indian GAAP and IFRS being a moving target,
Indian companies should actively monitor and participate in the IASB’s standard setting process.

15. 10
Appendix
Comparison of Ind AS with IFRS
Ind AS IFRS Difference
Ind AS 1
Presentation of
Financial
Statements
IAS 1
Presentation
of Financial
Statements
a) Differences in terminology (ex. Ind AS uses the term
balance sheet, IFRS uses statement of financial position)
b) Recent amendments to IFRS (ex. ‘Disclosure
Initiatives’ of IAS 1) not seen in Ind AS yet.
c) Whether long-term liabilities upon breach of certain
covenants are pronounced as current even if the lender
has agreed after the reporting period but before the
approval of financial statements to not demand payment
as a consequence of the breach. (IFRS says it should still
be current, Ind AS says it should not be)
Ind AS 7
Statement of
Cash Flows
IAS 7
Statement of Cash
Flows
a) Interest and dividends in IFRS may be classified as
operating, investing and financing in a manner
consistent from period to period. Ind AS has stringent
rules (similar to its predecessor Indian GAAP) where the
rules are different for financial entities when compared
to other entities. For financial entities, interest
paid/received and dividend received are operating
activities whereas dividend paid is a financing activity.
For other entities, interest and dividends received are
investing activities whereas interest and dividends paid
are financing activities.
Ind AS 10
Events after the
Reporting
Period
IAS 10
Events after the
Reporting
Period
a) The difference is similar to the one described for Ind
AS 1 above. The agreement of the lender in IFRS is not
considered an adjusting event whereas in Ind AS, it
would be considered one.

16. 11
Ind AS 12
Income
Taxes
IAS 12
Income
Taxes
a) In Ind AS, one cannot measure investment property
using the fair value model the same way one can in
IFRS.
b) In business combinations, if the carrying amount of
goodwill is zero, any remaining deferred tax benefit in
IFRS is recognized in profit or loss. In Ind AS, they are
recognized in OCI and accumulated in equity as capital
reserve or recognized directly in capital reserve
(dependent on several factors).
Ind AS 17
Leases
IAS 17
Leases
a) A property interest in an operating lease is recognized
and accounted for in IFRS using the fair value model.
Ind AS does not use the fair value model.
b) In IFRS, lease income from operating leases should
be recognized on a straight-line basis. Ind AS 17
contains an addition for escalation of lease rentals based
on inflation. Since the function of these escalations is to
protect the lessor from inflation, these lease payments
should not be straight-lined by both the lessor and
lessee.
Ind AS 19
Employee
Benefits
IAS 19
Employee
Benefits
a) Post-employment benefit obligations are recognized
in IFRS as being discounted by a discount rate
determined by referring to market yields on high quality
corporate bonds at the end of the reporting period. Since
India does not have a deep market for such bonds, it
uses market yields of government bonds as a reference
to determining the discount rate.
Ind AS 20
Accounting
for
Government
Grants and
IAS 20
Accounting
for
Government
Grants and
a) When it comes to government grants related to assets,
IFRS puts them in the statement of financial position
either as deferred income or deducting the grant from
the carrying amount of the asset. In Ind AS, these grants
(including non-monetary grants at fair value) should be

17. 12
Disclosure
of
Governmental
Assistance
Disclosure
of
Governmental
Assistance
presented in the balance sheet only as deferred income.
b) Non-monetary government grants can be classified
either at fair value or nominal amount by IFRS (both
asset and grant). In Ind AS, they are classified only at
fair value.
Ind AS 21
The
Effects of
Changes in
Foreign
Exchange
Rates
IAS 21
The
Effects of
Changes in
Foreign
Exchange
Rates
a) When it comes to change in functional currency,
IFRS asks for the fact and reason of change as
disclosures. Ind AS 21 asks for the same as well as
additionally disclosing the date of change.
b) During the beginning of convergence, companies
adopting Ind AS are allowed to use the policy used by
the previous year to account for exchange differences
arising from the translation of long-term foreign
currency Monetary items.
Ind AS 24
Related
Party
Disclosures
IAS 24
Related
Party
Disclosures
a) IFRS is more relaxed in its definition of a close
member of the family. Ind AS 24 insists on including
father, mother, brother and sister in the definition of
close members.
b) Ind AS 24 indicates that disclosures which conflict
with confidentiality requirements of statutes are not
required to be made. IFRS requires some amount of
disclosures from such entities
Ind AS 28
Investments
in
Associates
and
Joint Ventures
IAS 28
Investments
in
Associates
and
Joint Ventures
a) In IFRS, any excess of the investor’s share of net fair
value of the associate’s identifiable assets and liabilities
over the cost of investments is included as income in the
statement of profit and loss in the same period. In Ind
AS 28, it is recognized directly in equity as capital
reserve in the same period.
b) Uniform accounting policies are required in IFRS,
with no exception. In Ind AS 28, they are followed
unless proven to be impracticable to do so.

18. 13
c) As mentioned earlier, Ind AS prohibits the use of
equity method in separate financial statements for
investments in subsidiaries. Only the cost method can be
used.
Ind AS 29
Financial
Reporting in
inflationary
Economies
IAS 29
Financial
Reporting in
inflationary
Economies
a) Disclosure requirements in IFRS are the fact that the
financial statements are stated in terms of measuring
unit current at the end of reporting period, whether
financial statements are based on historical cost
approach or a current cost approach and the identity and
level of the price index at the end of the reporting
period. In addition to this, Ind AS 29 requires another
disclosure indicating the duration of the
hyperinflationary situation.
Ind AS 32
Financial
Instruments
Presentation
IAS 32
Financial
Instruments
Presentation
a) When it comes to the conversion option embedded in
foreign currency convertible bonds, IFRS only
recognizes equity in the entity’s functional currency.
Therefore, it should be fair valued at the end of every
reporting period using profit and loss as a tool. In Ind
AS 32, one can acquire fixed amount of shares in any
currency. Therefore, there is no requirement to use fair
value to measure.
Ind AS 33
Earnings
Per
Share
IAS 33
Earnings
Per
Share
a) Ind AS 33 needs all companies issuing ordinary
shares applicable to the Companies Act to provide EPS.
IAS 33 is applicable “to the separate and consolidated
financial statements of an entity/group with a parent: i)
whose ordinary shares or potential ordinary shares are
traded in a public market (a domestic or foreign stock
exchange or an over-the-counter market, including local
and regional markets); or ii) that files, or is in the
process of filing, its financial statements with
a securities commission or other regulatory

19. 14
Organization for the purpose of issuing ordinary shares
in a public market.”
b) When an entity shows both consolidated and separate
financial statements, IFRS requires EPS to be included
only in the consolidated statements, with voluntary
requirement in separate ones. In Ind AS 33, EPS is to be
presented in both.
c) In Ind AS 33, cases where any item of income or
expense which is usually recognized in profit or loss is
debited or credited to the securities premium account or
other reserves, profit or loss from continuing operations
should be respectively adjusted to calculate a proper
EPS. This is not required in IFRS.
Ind AS 38
Intangible
Assets
IAS 38
Intangible
Assets
a) IFRS recently introduced a rebuttable option that
changes the fact that revenue is not an appropriate
option to amortize an intangible asset. This option is
only permitted when the intangible asset is expressed as
a measure of revenue or when revenue and usage of the
asset have high correlation. Ind AS 38 also employs this
but adds another facet which allows entities to continue
using the same amortization policy of intangible
Assets related to service concession arrangements when
it comes to toll roads recognized in the period just
before adoption of Ind AS.
Ind AS 40
Investment
Property
IAS 40
Investment
Property
a) In IFRS, investment property is initially measured at
cost, with subsequent measurements being either at cost
or fair value. If it is fair value, changes in it should be
recognized in profit and loss. In Ind AS 40, the fair
value model is not permitted.

20. 15
Ind AS 101
First Time
Adoption of
Ind AS
IFRS 1
First Time
Adoption
of IFRS
a) In IFRS, there is no permission of previous
GAAP carrying values of P, P&E with the exception of
certain special oil and gas assets as well as rate regulated
assets. In Ind AS 101, entities have the option to use
previous Indian GAAP values for P, P&E as well as
intangible assets and investment properties.
b) For non-current assets held for sale and discontinued
operations, IFRS provides no exemption whereas Ind
AS 101 gives companies some leeway. They are allowed
to measure these assets or operations at the lower of
carrying value and fair value less cost to sell.
c) For lease classification, no exemption is provided by
IFRS. In Ind AS, similar to b), transitional relief is
provided which allows companies to look at their earlier
data to assess whether it is an operating or financing
lease. For any land lease recently classified as a finance
lease, assets and liabilities are recognized at fair value
on the convergence date, with any difference recognized
in retained earnings.
d) For business combinations, both IFRS and Ind AS
provide exemptions in different ways when it comes to
the non-application retrospectively to past business
combinations. If the exemption is taken in IFRS, any
intangible asset that does not qualify underlies 38 is
reclassified as a component of goodwill. In Ind AS,
these amounts can be adjusted using the capital reserve
up to the point that the amounts don’t exceed it.
e) As aforementioned, Ind AS provides exemption for
treatment of exchange differences arising from
translation of long-term foreign currency monetary
items. There is no such exemption in IFRS.

21. 16
Ind AS 103
Business
Combinations
IFRS 3
Business
Combinations
a) Ind AS 103 includes for the accounting of entities
under common control, one where the acquirer cannot
be determined. The pooling of interests method is used
for common control, something prohibited in IFRS. The
pooling of interests method will be talked about later.
b) When it comes to negative goodwill, the resulting
gain is recognized in profit or loss as a bargain purchase
in IFRS. In Ind AS, the gain is recognized in OCI and
accumulated as a capital reserve in equity.
Ind AS 110
Consolidated
Financial
Statements
IFRS 10
Consolidated
Financial
Statements
a) Investment property measurement by investment
entities in IFRS is done on a fair value basis. This is not
allowed in Ind AS, which measures it at cost initially
and cost less depreciation subsequently.
Ind AS 114
Regulatory
Deferral
Accounts
IFRS 14
Regulatory
Deferral
Accounts
a) IFRS does not require adoption of IFRS 14, but once
it is adopted, one must continue to use it for the
subsequent financial statements. Ind AS 114 allows “an
entity subject to rate regulation coming into existence
after Ind AS coming into force or an entity whose
activities become subject to rate regulation subsequent
to preparation and presentation of first Ind AS financial
statements” should be allowed to use previous GAAP
rules.
Ind AS 115
Revenue from
Contracts with
Customers
IFRS 15
Revenue from
Contracts with
Customers
a) Variable considerations are measured differently in
IFRS and Ind AS 115. However, Ind AS accounts for
penalties as per the substance of the contract. IFRS does
not do this.

22. 17
Article related to Indian Accounting Standard
Source: The Economics Times (20th
march 2016)
Over half of India Inc not ready for Ind AS implementation: PwC
With less than a fortnight left for formal adoption of Indian Accounting Standards, over
half of the companies aren't ready for the transition, says a PwC survey. The audit and tax
consulting firm believes that the level of preparedness for Ind AS adoption goes beyond financial
reporting, requiring significant organizational changes. "More than 50 per cent of the
respondents are yet to plan or commence implementing changes at an organizational level.”
Also, 39 per cent of them are yet to start or plan for the impact assessment of Ind AS adoption,"
says a PwC quoting the findings from a February 2016 survey among 100 companies across
industry sectors and size. About 63 per cent of them are covered under mandatory phase I
adoption of Ind AS. Known as Ind AS, new accounting and reporting standards that are in line
with global practices will kick in from April 1 in a phased manner. Nearly half (45 per cent)
believe management approach for identification of segments will have a major impact on
disclosures.
Sumit Seth, a partner at Price Waterhouse & Co, the accounting arm of PwC India,
advices companies to follow a step-by-step approach to Ind AS. "Since the impact of Ind AS
adoption cascades beyond accounting resulting in several organizational changes impacting
direct and indirect taxes, contractual arrangements with customers, suppliers, lenders, and
incentive policies including timely communication with various stakeholders, companies will
have to follow a step-by-step approach to ensure a smooth transition," he said.
Three-fourths of the respondents expect they will have to report additional non-Gaap
financial measures once they switch to Ind AS, says the survey, adding that even though the
impact of adopting Ind AS will vary from company to company and from across the sectors,
better planning will enable firms to address some implementation challenges in advance.
As per the survey, 45 per cent believe that management approach for identification of
segments will have a significant impact on the disclosures made by them. According to PwC,
financial services, retail and consumer companies as well as pharma and life sciences will be the
most impacted sectors once the transition takes place.

23. 18
Conclusion
The overhaul of Indian GAAP into Ind AS promises to bring about positive changes for
the Indian business environment. The current roadmap relating to the convergence to Ind AS will
start taking practical shape next year, where unlisted and listed companies having a net worth of
500 crores or more will have to undergo mandatory Ind AS adoption on 1 April, 2016. This
assumption has been taken given that there will be no further delay regarding Ind AS adoption
henceforth. the differences between India’s accounting standards and IFRS are sure to be at an
all-time low once Ind AS is introduced into the Indian business environment, with the roadmap
indicating that it should be in the coming year for certain companies who have been recognized
in the mentioned criteria. Ind AS is a good way for Indian entities to smooth out their earnings
from Indian GAAP to something similar to IFRS. For Ind AS to be successfully instilled in the
business environment, hard work as well as training starting from the grassroots level needs to be
done by entities prescribed to be adhering to these standards soon. First and foremost, there
should no further delays regarding introducing Ind AS to the environment. Once Ind AS has been
successfully implemented in India, there could be discussion on how to mitigate the potentially
irreconcilable differences between Ind AS and IFRS. It is well within the realm of possibility that
one day; India has the capacity and the resources to completely adopt IFRS in its business
environment.

24. 19
Webliography
1. https://en.wikipedia.org/wiki/Indian_Accounting_Standards
2. https://en.wikipedia.org/wiki/International_FinancialReporting_Standards
3. http://www.caquery.com/applicability-indian-accounting-standard-ind/
4. http://www.pwc.in/services/ifrs/ifrs-in-india_roadmap.html
5. https://www2.deloitte.com/content/dam/Deloitte/in/Documents/audit/in-audit-ind-as-
conversion-considerations-for-directors-and-audit committees-noexp.pdf
6. conversion-considerations-for-directors-and-audit-committees-noexp.pdf
7. http://indiabudget.nic.in/ub2014-15/bs/bs.pdf
8. http://www.icaiknowledgegateway.org/media/k2/attachments/Framework_for_the_Pr
eparation_and_Presentation_of_Financial_Statements_in_accordance_with_Indian_A
ccoun
9. http://www.ifrs.org
10. http://mha.nic.in/hindi/sites/upload_files/mhahindi/files/pdf/Eighth_Schedule.pdf
11. http://data.worldbank.org/country/india
12. http://economictimes.indiatimes.com/articleshow/51479444.cms?utm_source=content
ofinterest&utm_medium=text&utm_campaign=cppst