IndAS, IFRS and SFRS a Birdseye Comparison

Comparative analysis of Indian Accounting Standard (IND-AS), Singaporean Financial Reporting Standard (SFRS) and International Financial Reporting Standard (IFRS)

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Indian Accounting Standard (IND-AS)

Singaporean Financial Reporting Standard (SFRS)

International Financial Reporting Standard (IFRS)

1IND-AS (Indian Accounting Standard) is an accounting standard that acts under the supervision of ASB (Accounting Standard Board).

It was established as part of ASB in 1977. These are based on International financial reporting system (IFRS) as the IND-AS are named and numbered in the same way as IFRS. They have double entry accounting system as each entity requires conversion of entry to debit and credit.

SFRS (Singaporean financial reporting system) are the accounting standards in Singapore. All the companies in Singapore that have started their financial period since January 2003 are bound to act in accordance with the SFRS that is also based on International financial reporting system. These are applicable to small entities.IFRS (International financial reporting standard) are the standards set by IFRS foundation and IASB. The purpose of these standards is to bring all the global business affairs and accounts at one platform by introducing a global language that will lead towards understandable accounts across the global boundaries.
2The main components of financial statement in IND-AS involves cash flow statement, profit/loss statement, balance sheet and notes to accounts. It also has the ability of disclosure of accounting policies that are significant.In SFRS financial position statements, profit/loss statements, comprehensive income, changing equity statements, cash flow statements are part of notes win addition. Descriptive and disaggregation of items is explained in notes as well along with the information about the qualification or recognition of items in those statements.Different financial statement of IFRS involves periodic cash flow, financial position, profit/loss/comprehensive income and periodic changes in equity.
3It requires no specific format of balance sheet.Balance sheet, one of the statements of accounts in SFRS is also known as financial statement position that obeys the relation of Assets = Liabilities + Equities
This indicates that an entity’s entire assets must balance the summation of liabilities and equities.
It is required by Inland Revenue Authority of Singapore (IRAS).
It requires a comprehensive guidance for balance sheet. Different assets and liabilities are presented by an entity that is classified as current or non-current entity.
4It requires no specific format for profit/loss statement of income.Profit/loss statement of SFRS covers, gains, revenues, losses, expense of tax, impairment losses or gains and interest revenue that could be calculated by effective interest method.It has two types of format for income. Single statement format is for profit/loss only where dual statement format is for different components other than profit/loss like comprehensive income, operating and non-operating expenses.
5IND-AS allows changes in accounting policies under certain conditions like;
1) If enactment requires a different accounting policy to be adopted
2) To improve the financial statement of the corporation/firm.
3) If an accounting standard needs to be complied with
Accounting policies of SFRS are applicable when transactions or other event occurs. It is restricted to follow by the management. The accounting policies are reliable and relevant to economic-decisions. These are neutral, prudent and complete in its all aspects.IFRS allows changes its accounting policy if
1) IFRS itself needs changes
2) To improve the financial statement of the corporation/firm.
3) To improve the cash flows and effects of its transactions
6When it is about foreign exchange rates, the currency should be the same as stated in financial report.It requires conversion of foreign currency transactions to be in functional transactions using spot exchange rate. There is condition of using average exchange rate in case of no fluctuation in exchange rates for a week or month.When it is about foreign exchange rates, the currency selected by the entity should by the currency that it mainly uses for operations.

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