Friday, May 16, 2014

Difference in IFRS and Indian AS

- The increased use of fair value measurement and amortised cost (rather than cost), particularly in the financial services sector and for financial instruments such as interest rate hedges;

- Greater use of discounting;

- More capitalization or deferral of costs that may have been expensed previously, e.g. development costs;

- More recognition of specific types of intangibles;

- The treatment of actuarial differences on defined benefit pension schemes;

- The recognition of share options granted to, and other share based payments made to, employees as an expense of the employer;

- A prohibition of the use of the closing rate to translate foreign operations and the introduction of a new option to present results in any currency;

- New rules for accounting for foreign exchange forward contracts;

- Splitting certain bonds into debt and equity components;

- Acceleration or deferral of income due to new income recognition rules;

- New accounting disclosures.

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