on 04-12-2010 12:46 PM
Hi Experts,
Can any one shed light on the above subject? My Client is based out of India and has business spread across US and Europe. Are there any significant variations between these standards?
Thanks in Advance.
Points will be given.
Hello Harikrishnan,
To start with, there is nothing like legal when it comes to consolidation. We prepare Group accounts to take into account the increase/decrease in the shareholders funds of the parent company. In doing so we follow rules which are generally accepted at local country level also known as GAAP or at an international level also known as IAS/IFRS.
Companies own companies and the parent company is required to pay taxes on the global profits and parent company's country of incorporation is used as tax base.
My understanding of Indian Standards are limited and therefore providing information only for US GAAP and IFRSs.
Accounting rules in the US is heavily controlled especially post-Enron collapse. The have legislation to govern and investigate anything that is not correct. While US GAAP is pretty much in line with overall impression of standards, some rules vary like treating the value of inventory and recognition and derecognition of property, plant & equipment also known as Tangile Non-Current Assets. It is not possible to give you full explanation but some rules varies.
With the full comprehensive development of International Standards, more and more countries are following IFRSs to local GAAPs. In many countries like Australia and New Zealand, they just added country names before the IFRSs and made that their local GAAP to avoid confusion and differential treatments.
Hope the above would be helpful.
CONMJI
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Hi all,
I got these links which explains theoritically the differences between IFRS, US GAAP and Indian Accounting Standard. I just wanted to know at the reporting level is there any major variance among these standards.
http://www.iasplus.com/asia/2008ifrsindiangaap.pdf
http://www.pwc.com/en_IN/in/assets/pdfs/ifrs-us-gaap-indian-gaap.pdf
http://www.pwc.com/en_IN/in/assets/pdfs/india-publications-similarities-differences.pdf
Thanks
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