Difference Between Indian GAAP and US GAAP

Long term Debts: Under US GAAP , the current portion of long term debt is classified as current liability, whereas under the Indian GAAP, there is no such requirement and hence the interest accrued on such long term debt in not taken as current liability.

1. What is the difference between US accounting and Indian accounting?
2. What is the difference between US GAAP and local GAAP?
3. Is GAAP applicable in India?
4. What is difference between Ind AS and IFRS?
5. What are the 4 principles of GAAP?
6. Does US use IFRS or GAAP?
7. Why does the US use GAAP?
8. Which is better IFRS or GAAP?
9. What is the advantage of IFRS GAAP?
10. What GAAP means?
11. What are the 5 basic accounting principles?
12. Does India follow IFRS?

What is the difference between US accounting and Indian accounting?

Indian GAAP, like UK GAAP and IAS, allows the revaluation of property, plant and equipment, while US GAAP does not allow revaluation. Foreign currency transaction differences (AS 11). ... As a result, significant foreign exchange differences that are expensed under international GAAP are capitalised under Indian GAAP.

What is the difference between US GAAP and local GAAP?

Key Differences. The primary difference between the two systems is that GAAP is rules-based and IFRS is principles-based.

Is GAAP applicable in India?

GAAP stands for Generally Accepted Accounting Principles. Most Indian companies follow Indian GAAP while preparing their accounting records. ... But for Indian GAAP, the disclosure of the statement isn't mandatory.

What is difference between Ind AS and IFRS?

IFRS stands for International Financial Reporting Standards, It is prepared by the IASB (International Accounting Standards Board).
...
Difference between IFRS and IND AS.

What are the 4 principles of GAAP?

Four Constraints

The four basic constraints associated with GAAP include objectivity, materiality, consistency and prudence.

Does US use IFRS or GAAP?

International Financial Reporting Standards (IFRS) – as the name implies – is an international standard developed by the International Accounting Standards Board (IASB). U.S. Generally Accepted Accounting Principles (GAAP) is only used in the United States.

Why does the US use GAAP?

The specifications of GAAP, which is the standard adopted by the U.S. Securities and Exchange Commission (SEC), include definitions of concepts and principles, as well as industry-specific rules. The purpose of GAAP is to ensure that financial reporting is transparent and consistent from one organization to another.

Which is better IFRS or GAAP?

U.S. GAAP: An Overview. By being more principles-based, IFRS, arguably, represents and captures the economics of a transaction better than GAAP.

What is the advantage of IFRS GAAP?

The authors concluded that a company's adoption of IFRS creates strong economic benefits in countries with rigid regulation over financial reporting. These benefits include an increase in the stock's market value, an increase in market liquidity, and a lower cost of capital.

What GAAP means?

Generally accepted accounting principles, or GAAP, are a set of rules that encompass the details, complexities, and legalities of business and corporate accounting. The Financial Accounting Standards Board (FASB) uses GAAP as the foundation for its comprehensive set of approved accounting methods and practices.

What are the 5 basic accounting principles?

These five basic principles form the foundation of modern accounting practices.

• The Revenue Principle. Image via Flickr by LendingMemo. ...
• The Expense Principle. ...
• The Matching Principle. ...
• The Cost Principle. ...
• The Objectivity Principle.

Does India follow IFRS?

Indian Accounting Standards (Ind AS) are based on and substantially converged with IFRS Standards as issued by the Board. India has not adopted IFRS Standards for reporting by domestic companies and has not yet formally committed to adopting IFRS Standards.