Are IFRS and IND AS the same?

Summary

In this video, Pra, director of Mukia Consulting Pvt. Ltd., introduces a new series called 'Deep Dive into IFRS'. He explains the key differences between IFRS (International Financial Reporting Standards) and IND AS (Indian Accounting Standards), highlighting that while they are essentially the same, IND AS includes some Indian-specific deviations. Pra emphasizes the practical application of IFRS for business leaders, CFOs, and professional accountants, offering in-depth discussions on individual standards, case studies, and examples. The series aims to help global businesses better understand IFRS, with a focus on real-world implementation, rather than exam preparation.

Takeaways

• 😀 IFRS stands for International Financial Reporting Standards, while IND AS stands for Indian Accounting Standards.
• 😀 Both IFRS and IND AS are used for maintaining books of accounts in businesses, with IND AS being largely based on IFRS but tailored to India’s business culture.
• 😀 The speaker, Pra, is the director of Mukia Consulting Private Limited, a financial consulting firm based in Chennai, India, specializing in business solutions and compliance.
• 😀 The new video series, 'Deep Dive into IFRS,' will focus on educating professionals like CEOs, CFOs, accountants, and business owners on the practical application of IFRS.
• 😀 Although the series will be helpful to students, it is not intended as a substitute for exam preparation; it is more focused on real-world applications of IFRS.
• 😀 The series will cover IFRS standards in-depth, one by one, providing definitions, concepts, case studies, and practical examples for better understanding.
• 😀 India has largely adopted IFRS with some modifications specific to local business needs, resulting in the creation of IND AS (Indian Accounting Standards).
• 😀 While IFRS and IND AS are mostly aligned, any deviations in IND AS will be highlighted in the videos to help professionals understand the differences.
• 😀 The video series will take a practical, less formal approach to explaining IFRS, making it accessible for business leaders and professionals.
• 😀 The next video in the series will cover IAS 1/IND AS 1, which deals with the presentation of financial statements.
• 😀 The speaker encourages viewers to follow the series for a deeper understanding of IFRS, with a focus on practical, real-world applications.

Q & A

What is the main difference between IFRS and IND AS?

The primary difference is that while IFRS (International Financial Reporting Standards) is globally applicable, IND AS (Indian Accounting Standards) is essentially a localized version of IFRS, with some deviations to align with India's business culture and regulatory needs.

Why does India follow IND AS instead of IFRS directly?

India follows IND AS because of its business culture, which requires some deviations from IFRS. The Indian approach integrates these changes through the Carin and Carot principle, creating an Indianized version of IFRS.

How many countries use IFRS?

IFRS is applicable in 168 countries worldwide.

What is the aim of the series mentioned in the script?

The aim of the series, 'Deep Dive into IFRS,' is to educate CEOs, CFOs, accountants, and business owners globally on the practical application of IFRS, with a focus on in-depth exploration of individual IFRS standards.

What type of approach will the series take toward teaching IFRS?

The series will not follow a strictly formal approach but will delve into each IFRS standard with a practical perspective, using case studies, definitions, and examples to explain each standard.

Who is the target audience for this IFRS series?

The target audience includes CEOs, CFOs, professional accountants, and business owners worldwide. While students can benefit from the series, it is not intended as a sole resource for exam preparation.

What does the speaker's company, Mukia Consulting Private Limited, do?

Muksia Consulting Private Limited, led by the speaker, provides end-to-end business solutions, including business registrations, statutory compliance, bookkeeping, auditing, and advisory services for clients both in India and abroad.

Why is the US not mentioned in the context of IFRS?

The US follows its own set of accounting standards known as US GAAP (Generally Accepted Accounting Principles), which is why it is not included in the list of countries that follow IFRS.

What will the speaker cover in the next video of the series?

The next video will begin with an in-depth explanation of IAS 1 (International Accounting Standard 1) and its Indian counterpart, IND AS 1.

Is it advised for students to use this video series as their sole source for exam preparation?

No, while the series can be educational, it is not recommended for students to rely on it solely for exam preparation, as it focuses more on practical application than exam-specific content.