Ind AS vs IFRS Comparison#
Similarities#
- Largely converged with IFRS
- Same Framework
- Similar recognition principles
Major Differences#
| Area | Ind AS | IFRS |
|---|---|---|
| PPE Revaluation | Not allowed | Allowed |
| Development costs | Capitalize if criteria met | Same |
| Investment Property | Cost model only | Fair value option |
| Joint Arrangements | Proportionate | Equity |
| Deferred Tax | Income tax approach | Balance sheet approach |
Key Divergences#
-
Property Plant Equipment
- Ind AS: Cost model only
- IFRS: Revaluation model
-
Investment Property
- Ind AS: Cost model
- IFRS: Fair value option
-
Business Combinations
- Ind AS: Non-controlling interest (optional)
- IFRS: Full goodwill
Practical Implications#
- Foreign subsidiaries reporting
- Cross-border transactions
- Investor expectations