First time adoption

There is no equivalent Indian Accounting standard for first time adoption. However when a standard is introduced for first time it contains date from which it will be mandatory and in few standards transitory provisions are also given.

IFRS contains a separate standard for first time adoption wherein it provides that all IFRSs effective at the reporting date shall have full retrospective application. It also provides for some optional exemptions and mandatory exceptions to this.

Historical IGAAP uses historical cost basis. Fixed IFRS uses historical cost; however Cost V/S assets may be revalued. Certain Intangible assets, Property Plant Fair Value derivatives are carried at fair value. and Equipment (PPE) and Investment properties may be measured at fair value. Derivatives, certain other financial instruments and biological assets must be revalued at reporting date. Financial Statements The financial statements comprise of: (a) Balance sheet; (b) Statement of Profit and Loss; (c) Cash flow statement (mandatory only for companies which are not SMEs); and (d) Notes to financial statements, including summary of accounting policies and the necessary explanatory notes thereon. The above are the minimum requirements as per Schedule VI to the Companies Act 1956 . The financial statements must comply with Accounting Standards issued by the Institute of Chartered Accountants of India and notified under the Companies (Accounting Standard) Rules, 2006. Accounting standards do not prescribe any particular format of Balance Sheet. The Companies Act and other relevant statute prescribe the form and contents of Balance sheet. As per IAS 1, financial statements comprise of: (a) Statement of Financial Position; (b) Statement of Comprehensive Income; (c) Statement of Changes in Equity; (d) Statement of Cash Flows; and (e) Notes including summary of accounting policies. These Financial Statements must comply with IFRS.

Balance Sheet / statement of financial position

There is no prescribed format. Certain minimum items must be presented on the face of the statement of financial position and certain items should be presented either on face or in notes. An entity shall present current and non-current assets and current and non-current liabilities, as separate classifications on the face of its statement of financial position,

The format of balance sheet given in Schedule VI of the companies Act is based on current and non current classification and in order of liquidity. It specifies order in which the items are to be presented.

except when presentation based on liquidity provides more relevant and reliable information. Profit and Loss Account / Income Statement IGAAP does not prescribe a standard format for Statement of Profit and Loss. However there are disclosure norms for certain income and expenditure items under the Companies Act 1956, and the Accounting Standards. There is no prescribed format. However, certain items are prescribed as a minimum disclosure on the face of the Income statement.

There are specific formats prescribed under respective Industry regulation. As per these requirements, an entity An analysis of expenses is presents an analysis of expense by their presented using a classification nature in the Statement of Profit and Loss. based on either the nature of expenses or their function within the entity, either on the face of the Income Statement or in notes. Profit or loss attributable to minority interests is disclosed as a deduction from the profit or loss for the period as an item of expense or income. Profit or loss attributable to minority interests and equity holders of the parent are disclosed on the face of the comprehensive income statement as allocations of profit or loss for the period. An entity shall present all items of

Statement of Comprehen sive Income (SOCI); and Statement of Changes in Equity (SOCIE)

No SOCI/SOCIE is prescribed under IGAAP.

All items are recognised in the Statement income and expense recognised in of Profit and Loss in accordance with AS 5, a period: unless required otherwise by any (a) in a single statement of accounting standard, by statute or court comprehensive income, or order. Considering these requirements, (b) in two statements: a credits for certain items are directly taken statement displaying to "Reserves and Surplus. The information components of profit or loss relating to appropriation of profit is (separate income statement) and a second statement presented under Reserve and Surplus. beginning with profit or loss and displaying components of other comprehensive income (statement of comprehensive income). No requirement of SOCIE. The statement of Changes in Shareholders equity must be presented as a primary statement. The statement shows Capital

transactions with owners, movement in accumulated profits and a reconciliation of all other components of equity. Cash Flow As per AS 3 use of Direct or Indirect Statement method permitted. definition of Cash & Cash equivalent Similar to IGAAP, direct or indirect method can be used.