What is the difference between Indian GAAP and US GAAP?

What is the difference between Indian GAAP and US GAAP?

Indian GAAP, like UK GAAP and IAS, allows the revaluation of property, plant and equipment, while US GAAP does not allow revaluation. Foreign currency transaction differences (AS 11).

What is the difference between GAAP and US GAAP?

IFRS is a globally adopted method for accounting, while GAAP is exclusively used within the United States. GAAP focuses on research and is rule-based, whereas IFRS looks at the overall patterns and is based on principle. GAAP uses the Last In, First Out (LIFO) method for inventory estimates.

Is IAS 38 different from US GAAP?

How does IAS 38 (Intangible Assets) differ from U.S. GAAP with respect to development costs? U.S. GAAP does not allow capitalization of development costs, whereas IAS 38 allows capitalization of these costs.

Is GAAP applicable in India?

Indian GAAP means generally accepted accounting principles applicable in India, as promulgated (i) by the Indian Institute of Chartered Accountants, and (ii) under the (Indian) Companies Act, 1956.

Who uses US GAAP?

All 50 state governments prepare their financial reports according to GAAP. The Governmental Accounting Standards Board (GASB) estimates that about half of the states officially require local and county governments to adhere to GAAP.

What are the sources of Indian GAAP?

2.10 There are two primary authoritative sources of generally accepted accounting principles (GAAP) for local governments:

• GASB – Governmental Accounting Standards Board.
• AICPA – American Institute of Certified Public Accountants.

What is the difference between Indian accounting and foreign accounting?

IND AS is also known as Indian Accounting Standards or Indian version of IFRS….Difference between IFRS and IND AS.

Which of the following is a difference between IAS 37 and US GAAP with respect to restructuring provisions?

Which of the following is a difference between IAS 37 and U.S. GAAP with respect to restructuring provisions? U.S. GAAP does not allow recognition of a restructuring provision until a liability has been incurred.

Can you Capitalise R&D under US GAAP?

R&D capitalization is a totally legitimate and well established practice. It is accepted under GAAP (Generally Accepted Accounting Principles) in the U.S. and the IFRS (International Financial Reporting Standards), the latter of which may actually mandate the practice in certain cases.

What is the difference between Indian accounting and US accounting?

Main GAAP differences The Indian GAAP reflects international GAAP in the key accounting principles such as: prudence, going concern, consistency, accruals, substance over form and materiality. While currently the most significant accounting differences are absence of consolidation and deferred tax accounting.

What is the difference between Indian Accounting Standards and international accounting standards?

Indian AS or IND AS is used in the context of Indian companies….Difference between IFRS and IND AS.

One of the most significant differences in GAAP is the absence of both consolidation and equity accounting in Indian GAAP. As the parent company’s holding in each subsidiary is required to be disclosed along with the separate accounts i.e. not consolidated of each subsidiary.

What are the R&D expenses under Indian GAAP?

Research and development expenditure In Indian GAAP, R&D expenditure is charged to P&L except equipment and machinery which are to be capitalized and depreciated. In US GAAP all R&D costs are expenses except intangible assets purchased from others and Tangible assets that have alternative future uses 14.

Is Indian GAAP moving closer to global best practices?

Thus, although Indian GAAP differs fundamentally in certain respects from international GAAP, it is taking steps to move closer to global best practices. Therefore, it is worth saying ‘watch this space’. Ram Iyer, BCom (Bombay); ACA (England and Wales); ACA (India); CPA (US); ATT (London).

What are the GAAP standards in India?

In India, it is the statements issued by Institute of Chartered Accountants of India (ICAI) that form the standards when it comes to Indian GAAP. These standards have to be followed by companies when they come out with their financial statements.