Below are the key differences between Ind AS and AS: Particulars Ind AS (Indian Accounting Standards) AS (Accounting Standards) Applicability Mandatory for specified companies (as per Companies (Ind AS) Rules) Applicable to other companies not required to follow Ind AS Objective Converged with IFRSRead more
Below are the key differences between Ind AS and AS:
| Particulars | Ind AS (Indian Accounting Standards) | AS (Accounting Standards) |
|---|---|---|
| Applicability | Mandatory for specified companies (as per Companies (Ind AS) Rules) | Applicable to other companies not required to follow Ind AS |
| Objective | Converged with IFRS – for global financial reporting comparability | Designed primarily for Indian reporting needs |
| Conceptual Framework | Substance over form – economic reality takes precedence | Legal form is generally followed |
| Fair Value Measurement | Emphasis on fair value accounting (Ind AS 113) | Primarily based on historical cost |
| Presentation of Financials | Requires detailed disclosures – e.g., in Ind AS 1 | Less detailed disclosures |
| Consolidation | Mandates consolidation under Ind AS 110 | Consolidation not mandatory under AS (except in limited cases) |
| Financial Instruments | Recognized under Ind AS 32, 109 etc., with complex valuation models | No comprehensive guidance under AS |
| Use of Other Comprehensive Income (OCI) | OCI is presented separately (Ind AS 1) | No concept of OCI under AS |
| Impact of Changes in Accounting Estimates & Errors | More detailed guidance in Ind AS 8 | Less extensive under AS 5 |
Under Section 135 of the Companies Act, 2013 and the prescribed Schedule VII, an eligible Indian company must incur its own CSR expenditure on activities specified therein. The CSR obligation is applicable exclusively to companies incorporated in India based on their own financial metrics and resourRead more
Under Section 135 of the Companies Act, 2013 and the prescribed Schedule VII, an eligible Indian company must incur its own CSR expenditure on activities specified therein. The CSR obligation is applicable exclusively to companies incorporated in India based on their own financial metrics and resources.
Thus, even if a foreign holding company— which, as a non‐Indian company, is not subject to the same CSR mandate— incurs expenditure on CSR activities in its jurisdiction, such expenditure cannot be clubbed with or transferred to meet the CSR requirement of its Indian subsidiary.
In other words, the Indian subsidiary must spend CSR funds from its own resources in accordance with the CSR framework under Section 135 and Schedule VII, and the expenditure incurred by the foreign holding company is not eligible to be taken as CSR expenditure by its Indian subsidiary.
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