GAAP, IFRS and IND-As: A Comparative Study on the Applicability of Inventories
The Ministry of Corporate Affairs (MCA) had issued amended rules of adopting Indian Accounting Standard (IND-AS) in a prescribed manner at the starting of the financial year 2016-17 in view of the notification released in 2015 for the Indian Companies. IND-AS is the standardized form of reporting by the Indian Companies convergent with IFRS and more acceptable globally. Initially, a set of guidelines, rules, conventions and procedures was prepared for accepting financial accounting practices may called Generally Accepted Accounting Principles (GAAP). Later, International Accounting Standard Board (IASB) issued an internationally accepted method of financial reporting International Financial Reporting Standards (IFRS) which confirms the comparability and understandability of global trade and commerce called. The number of major standards so far listed, Inventories Accounting is a most important among them. The study aims to analyses how Inventories accounting is enumerated in the financial reporting system and its implications in corporate accounting. A comparative analysis has also been stated among the financial accounting in GAAP, IFRS and IND-AS, regarding financial reporting of Inventories in these three system. Only secondary sets of information are consider to organize the study mainly based on websites and journals. The study concludes that there are huse differences between IFRS and IND-AS with GAAP. However, there is narrow gap between RS and IND-AS, although basic disclosure are remarkably transformed.
Keywords: MCA, GAAP. IFRS, IND-AS, IASB, Financial Reporting