Significant
differences between US GAAP,
Indian GAAP and IAS
|
Aspect |
US GAAP |
INDIAN GAAP |
IAS |
| Revaluation | Generally not Permitted | Permitted | Permitted |
| Interest Capitalization | On both general and Specific debt | On specific Debt only | Free choice |
| Computation method and conditions prescribed | Computation Method and Conditions not prescribed | ||
| Interest earned on Surplus funds | Deductible only in case of tax exempt, restricted use borrowings | Deductible | Deductible |
| Exchange Gain/loss | Charge to expense | Can be capitalized | Generally charged to expense, except in restricted cases. |
| Depreciation | Based
on estimated useful life. |
Methods and rates prescribed by statute | EUL Three methods SLM, WDV, Sum of digit. |
| Choice of methods | Higher of prescribed rates or rates arrived based on EUL | Periodic review of rates and method. | |
| Impairment Review | Required.
Undiscounted cash flow. Reversal of recognized losses not permitted. |
Not required | Required.
Discounted Cash flow. Reversal of recognized losses permitted. |
| Change in depreciation method | Treated
as change in accounting Principle. Retrospective computation; no restatement
of prior year financials. Recognize cumulative differences. |
Retrospective Computation. Recognize past years impact in current years accounts | Change
in accounting estimates. Current and prospective. |