9 JANUARY 2024
DIFFERENCE BETWEEN IFRS & AS
ASSIGNED BY NEELAM SHAIKH MAM
What is
IFRS & AS
IFRS stands for international financial reporting standards.
It's a set of accounting rules and standards that determine
how accounting events should be reported in your business's
financial statements.
An accounting standard is a common set of principles,
standards, and procedures that define the basis of financial
accounting policies and practices.
Key Differences in Principles
Revenue Expense Asset Valuation
Measurement Basis
Recognition Recognition
IFRS allows both IFRS focuses on substance IFRS allows for more IFRS allows revaluation
historical cost and fair over form, allowing revenue judgment in expense of assets to reflect fair
value measurements, recognition when risks and recognition, while AS value, while AS typically
while AS primarily rewards are transferred. AS follows specific criteria follows historical cost.
follows historical cost. follows specific criteria for for each type of expense.
each type of transaction.
Components
Components of IFRS Components of AS
• Statement of financial position. • Balance Sheet
• Statement of profit and loss. • Profit and loss account
• Statement of changes in equity for the • Cash flow statement
period. • Statement of changes in equity
• Statement of cash flows for the period. • Notes to financial statements
• Disclosure of accounting policies
Impact on Financial
Statement
Balance Sheet Income Cash Flow Statement
Statement
The valuation and
presentation of assets and Revenue and expense Differences in revenue and
liabilities can differ recognition methods can expense recognition can affect
significantly between IFRS lead to variations in the
the cash flow statement
and AS. income statement.
Liability valuation
Liability valuation of Liability valuation of
IFRS AS
The fair value of a financial The fair value of the asset or
liability with a demand feature liability is the price that would be
(e.g. a demand deposit) is not less received to sell the asset or paid to
than the amount payable on transfer the liability (an exit
demand, discounted from the first price). Entities do not necessarily
date that the amount could be sell assets at the prices paid to
required to be paid.. acquire them
Recent Development Adoption by Different Countries
• Many countries have adopted IFRS,
while AS is primarily followed in India.
Convergence Efforts
• Efforts are ongoing to converge IFRS and AS
to reduce differences and promote global
financial reporting harmonization
Challenges and Potential Harmonization Issues
• Differences in legal, cultural, and economic environments
pose challenges for the harmonization of accounting
standards.
Conclusion
Understanding the
differences between IFRS
and AS is crucial in
maintaining accurate and
transparent financial
reporting. Stay updated on
the latest developments and
strive for harmonization.
participants
191 Vivek Vaddepelli
192 Deepali vane
193 Sakshi Wagh
194 Ritika Waghmare
195 Aishwarya Wayangankar
196 Sanika Yadav
197 Vinayak yadav (not contributed)
198 Fardeen qureshi
199 Sahil Giridhar
200 Sanika Gharat
201 Jay Gawand
