What is difference between US GAAP and Indian GAAP?

What is difference between US GAAP and Indian GAAP?

Indian GAAP, like UK GAAP and IAS, allows the revaluation of property, plant and equipment, while US GAAP does not allow revaluation. Foreign currency transaction differences (AS 11). International GAAP does not allow such foreign currency transaction differences to be capitalised.

Does India follow US GAAP or IFRS?

Indian Accounting Standards (Ind AS) are based on and substantially converged with IFRS Standards as issued by the Board. India has not adopted IFRS Standards for reporting by domestic companies and has not yet formally committed to adopting IFRS Standards.

What is the difference between IFRS and US GAAP?

The primary difference between the two systems is that GAAP is rules-based and IFRS is principles-based. Consequently, the theoretical framework and principles of the IFRS leave more room for interpretation and may often require lengthy disclosures on financial statements.

Is there any difference between Indian GAAP and US GAAP for revenue booking point of view?

Like UK GAAP and IAS, the Indian GAAP also allows the revaluation of property, plant and equipment. While, US GAAP does not allow any revaluation.

What are the 4 principles of GAAP?

Four Constraints The four basic constraints associated with GAAP include objectivity, materiality, consistency and prudence.

Is LIFO allowed in India?

The cost of other inventory items used is assigned by using either the first-in, first-out (FIFO) or weighted average cost formula. Last-in, first-out (LIFO) is not permitted. Indian companies have generally adopted the weighted average or FIFO method.

Which is better GAAP or IFRS?

By being more principles-based, IFRS, arguably, represents and captures the economics of a transaction better than GAAP.

Is Indian GAAP equivalent to IFRS?

The key difference between IFRS vs Indian GAAP is that IFRS is the international accounting standards that provide guidance on how different transactions should be reported by the company in their financial statements which is used by many countries, whereas, Indian GAAP are the generally accepted accounting principles …

Why does the US not use IFRS?

As the SEC’s purpose is to protect investors in US companies, especially US investors, they have shown some resistance to the adoption of IFRS. The SEC cites IFRS’s lack of consistency and believes IFRS is underdeveloped when it comes to small-scope issues in reporting.

Does US use IFRS?

Currently, more than 500 foreign SEC registrants, with a worldwide market capitalisation of US$7 trillion, use IFRS Standards in their US filings. The IFRS for SMEs Standard is required or permitted. The IFRS for SMEs Standard is neither required nor expressly permitted.

What are the similarities and differences between GAAP and IFRS?

GAAP vs. IFRS. A major difference between GAAP and IFRS is that GAAP is rule-based, whereas IFRS is principle-based. With a principle based framework there is the potential for different interpretations of similar transactions, which could lead to extensive disclosures in the financial statements.

What does GAAP stand for?

The standards are known collectively as Generally Accepted Accounting Principles—or GAAP. For all organizations, GAAP is based on established concepts, objectives, standards and conventions that have evolved over time to guide how financial statements are prepared and presented.

What’s the difference between IFRS and GAAP in India?

IFRS is used in 110 countries and it’s one of the most popular accounting standards. On the other hand, Indian GAAP is a set of accounting standards that are specifically designed for the Indian context. GAAP stands for Generally Accepted Accounting Principles.

Which is the International Accounting Standards Board ( IFRS )?

IFRSs are Standards and Interpretations adopted by the International Accounting Standards Board. They comprise the International Financial Reporting Standards, International Accounting Standards, and Interpretations issued by the IFRS Interpretations Committee or the former Standing Interpretations Committee.

Do you need to prepare consolidated statement under Indian GAAP?

As per Indian GAAP, a company doesn’t need to prepare consolidated statements. As per IFRS, the companies need to disclose as a note that they’re complying with the IFRS. But in the case of Indian GAAP, there’s no need for a statement disclosing that the company is complying with Indian GAAP.

Where can I find the full form of IFRS?

The full form of IFRS is the International Financial Reporting Standards. It was prepared and updated by the IASB ( International Accounting Standards Board ), a non-profit, independent organization. IFRS is used in 110 countries, and it’s one of the most popular accounting standards.