Compare IFRS and Indian GAAP.

The full form of IFRS is International Financial Reporting Standards.

Developed by International Accounting Standards Board (IASB).

A company has to disclose a note that its financial statements comply with IFRS.

Adopted by more than 110+ countries.

IFRS 1 provide clear instructions about how to adopt IFRS for first time.

No exemption for cash flow statements.

IAS 16 mandates component accounting.

It has comprehensive guidance for balance sheets, an entity to present assets and liabilities and classify them as current or non-current items.

The full form of GAAP Generally Accepted Accounting Principles.

Developed by Ministry of Corporate Affairs (MCA).

If a company is following Indian GAAP, it is presumed that its comply with it and shows a fair and fair view about its financial affairs.

Adopted by only Indian companies.

Doesn’t give any clear instructions on first time adoption.

Exemption for SMEs cash flow statements.

AS 10 recommends does not force component accounting.

No particular format for balance sheet.

Components of financial statements.

Statement of financial position.

Statement of profit or loss and other comprehensive income.

Statements of changes in equity for the period.

Statement of cash flow for the period.

Balance sheet.

Profit and loss account/statement of profit and loss.

Cash flow accounts (not for SMEs).

Statement of changes in equity, notes to accounts/financial statements.

Disclosure of significant accounting policies.