Difference Between IFRS and Ind AS

Difference Between IFRS and Ind AS (With Examples)

The difference between IFRS and Ind AS lies mainly in their scope, issuing bodies, implementation in India, and several India‑specific carve‑outs in areas such as financial instruments, revenue, and taxation. While Ind AS is converged mainly with IFRS, it has been customised to suit India’s legal, regulatory, and economic environment.

Key differences at a glance

What are IFRS?

IFRS are a globally accepted set of accounting standards issued by the IASB to ensure transparent, comparable financial statements across countries. Many multinational companies and cross‑border investors rely on IFRS to analyse performance and make capital allocation decisions.

For a broader context on how IFRS evolved and why they matter, you can refer to Eduyush’s article on the objectives of IFRS and the updated IFRS standards list.

What are Ind AS?

Ind AS are India’s converged version of IFRS, designed to bring Indian financial reporting closer to global practice while still complying with local laws and regulations. The MCA notifies them and largely mirror IFRS wording, with limited carve‑outs and additional guidance for Indian conditions.

Companies looking to build IFRS expertise specifically for India often pursue the ACCA Diploma in IFRS or AICPA IFRS certifications; Eduyush explains this pathway in How to get Diploma in IFRS and the Eduyush Diploma in IFRS resource hub.

How India implemented IFRS and Ind AS

Timeline in simple language

Vicky often breaks the Indian story into four easy phases for students:

1. “Let’s try this” phase (around 2005–2011): India experimented with using IFRS for certain consolidated and standalone financials of listed companies, building comfort and capacity.
2. “Convergence, not full adoption” decision: Policymakers chose a converged model—Ind AS—rather than straight IFRS, to keep flexibility for Indian law and sector regulators.
3. “Big guys move first” (2016 onwards): Large listed and unlisted companies crossed over to Ind AS from April 2016, with smaller companies joining later based on net‑worth slabs.
4. “Banks and insurers not fully there yet”: RBI and IRDAI have postponed full Ind AS adoption for banks and insurers, mainly due to system readiness and regulatory alignment.

A detailed, exam‑oriented walkthrough of these phases shows up frequently in DipIFR question banks and in Eduyush’s IFRS interview questions set: IFRS Interview Questions.

Critical differences between IFRS and Ind AS

1. History and development

• IFRS evolved from International Accounting Standards issued since the 1980s and were formally branded IFRS in 2001, reflecting a long global convergence journey.
• Ind AS were notified in phases from 2015 onwards, with mandatory adoption for large Indian companies from 2016 to align domestic reporting with IFRS.

For a deeper understanding of how Indian GAAP, Ind AS and IFRS compare in practice, a sound background is the broader similarities‑and‑differences literature referenced in global guides.

2. Scope and applicability

• IFRS apply in over 140 jurisdictions and are typically mandatory for listed companies and sometimes for large public‑interest entities.
• Ind AS apply only in India and are mandatory for listed companies and specified unlisted companies based on net‑worth thresholds, while smaller entities can continue under previous Indian GAAP.

3. Issuing and regulating bodies

• IFRS are issued by the IASB, an independent international standard‑setting body based in London.
• Ind AS are drafted by ICAI and notified by the MCA; sector regulators such as the RBI and IRDAI influence the timing and implementation for banks and insurers.

Banks and insurance companies have seen deferments from the RBI and IRDAI, so many still await the full Ind AS rollout.

If you are preparing for interviews around these milestones, Eduyush’s IFRS interview questions and Accounting interview questions can be helpful.

4. Differences in specific standards

Some of the more exam‑relevant differences include:

• Financial instruments (IFRS 9 vs Ind AS 109)
  • IFRS 9 requires fair‑value changes on many financial assets to be recognised in profit or loss, with specific categories like FVOCI and FVTPL.
  • Ind AS 109 closely follows IFRS 9 but includes adjustments for Indian regulatory practices and sometimes different treatment of fair‑value changes between OCI and profit or loss, as illustrated in your bond case study.
  • For deeper exam prep, see IFRS 9 interview questions and IFRS 9 practice questions.
• Revenue recognition (IFRS 15 vs Ind AS 115)
  • IFRS 15 uses a 5‑step model and often leads to revenue being recognised over time if the customer receives and consumes benefits as services are performed.
  • Ind AS 115 is converged with IFRS 15, but may lead to different judgements in Indian service contracts, especially for consulting or construction, as shown in your case study, where revenue might be recognised at a point in time rather than over time.
  • Further reading: IFRS 15 interview questions and IFRS 15 practice questions.
• Leases (IFRS 16 vs Ind AS 116)
  • Both standards largely align, bringing most leases on‑balance‑sheet for lessees, but India had its own transition timelines and regulatory nuance.
  • The leasing content often features in DipIFR and is addressed in DipIFR‑oriented materials like BPP DipIFR Passcards and other Eduyush resources.

How detailed are IFRS vs Ind AS?

Students frequently complain that both sets are “too much to remember”, but the style is slightly different.

• IFRS tends to state broad principles and expects professionals to join the dots using judgement, industry practice and illustrative examples.
• Ind AS adds more India‑specific detail and clarifications, which can feel longer, but often makes exam practice and implementation a bit more predictable.

Vicky’s advice in class is simple: master the principle from IFRS first, then layer on the Ind AS carve‑out—never the other way round. That approach works well if you are also targeting global roles where IFRS certification and IFRS salary are key differentiators

Tax, disclosure and “Indian reality”

IFRS does not tell you how to compute tax; it only drives deferred tax accounting via standards like IAS 12. In India, however, companies and auditors must also juggle MAT, ICDS and frequent tax‑law changes, so Ind AS guidance and local technical literature try to make that juggling act slightly more manageable.

On disclosure, IFRS checklists can feel brutal—especially for smaller entities—because they are designed for global capital markets. Ind AS still requires extensive notes, but aligns them with Companies Act, SEBI and other Indian rules, trimming or tailoring some of the global expectations.

Practical examples of IFRS vs Ind AS

Case study 1: Financial instruments

• Under Ind AS 109, a decline in fair value of an available‑for‑sale bond may be recognised in OCI if the change is not credit‑related.
• Under IFRS 9, a similar instrument classified differently might see fair‑value changes taken to profit or loss, affecting reported earnings volatility.

Case study 2: Revenue from services

• Under Ind AS 115, a consulting contract may lead to revenue being recognised on completion if control transfers at the end of the engagement.
• Under IFRS 15, if the customer benefits as work is performed and there is no alternative use, revenue could be recognised over time using an appropriate progress measure.

Students preparing for DipIFR or job interviews should combine such case studies with targeted Q&A from the 70 IFRS interview questions guide.

Implementation challenges in India

Common challenges when moving from old Indian GAAP to Ind AS or to complete IFRS reporting include:

• System and process changes for fair‑value measurement, ECL models and revenue timing.
• Training finance teams and auditors to exercise judgement under principles‑based standards.
• Managing stakeholder expectations when KPIs shift due to new recognition and measurement rules.

To systematically build capability, many professionals enrol in structured IFRS programs like ACCA DipIFR or AICPA IFRS; Eduyush compares these options in AICPA or ACCA IFRS – which is better? and provides tools such as the IFRS course selection / eligibility tools from the IFRS blog hub.

Benefits of convergence for Indian companies

Convergence between IFRS and Ind AS offers several benefits:

• Improved comparability of Indian financial statements with global peers, facilitating cross‑border listings and FDI.
• Enhanced transparency and disclosure, improving investor confidence and potentially lowering cost of capital.
• Reduced duplication of reporting where multinational groups otherwise had to prepare both IFRS and local‑GAAP accounts.

Professionals who understand these benefits and the underlying technical differences are better positioned for roles in financial reporting, controllership and advisory—areas strongly supported by Eduyush’s broader IFRS knowledge blog.

About the author – Vicky Sarin, CA

Vicky Sarin is a Chartered Accountant with over 25 years of post‑qualification experience in financial reporting, audit andglobal accounting education. As Founder & CEO of Eduyush.com, he has helped thousands of finance professionals clear ACCA DipIFR and other IFRS certifications through structured coaching, books and exam‑focused resources