IFRS vs Ind AS: Key Differences You Should Know

By IIC Lakshya

21 Jan 2026

ACCA

IFRS vs Ind AS: Key Differences You Should Know

If you are a finance professional preparing to work for multinational companies in India and internationally, you must learn all about the International Financial Reporting Standards (IFRS) and Ind AS (Indian Accounting Standards). Some key differences help you develop a deeper insight into the overall implementation of accounting practices in India and abroad.

What is IFRS?

The International Financial Reporting Standards (IFRS) are published by the International Accounting Standards Board (IASB). Companies, governments, and individuals use the IFRS Standards to prepare their financial statements and use them in the worldwide accounting industry. Candidates pursuing the ACCA course also need to develop an understanding of IFRS practices.

Transparency and accuracy are integrated by the IFRS in the financial markets, establishing a common accounting system
More than 120 countries follow these Standards, including Australia and the European Union.
There are other standards which are followed or adapted by countries is Generally Accepted Accounting Principles (GAAP), which is more of a local interpretation of the IFRS sets.

Example

In a scenario, an Indian IT company develops a customized software and provides maintenance support for two years for another organization. They signed the project contract for INR 10 crore. The IFRS implementation will require the company to identify the following performance obligations:

Software development
Maintenance services

Henceforth, over the development period, the software development is recognized. Additionally, the maintenance revenue is recognized over 2 years. It is based on the standalone selling prices. Read the uses of the IFRS explained to develop a deeper insight into the purposes.

What is Ind AS?

The Institute of Chartered Accountants of India (ICAI) developed the Indian Accounting Standards (Ind AS). They implement it through the Ministry of Corporate Affairs. The Ind AS is an adapted version of the IFRS to reflect the economic needs of the country. Individuals with DipIFR certification know how the strategies differ from IFRS.

The accounting practice in India is aligned effectively with the adoption and implementation of Ind AS by the government of India.
The regulations and tax structure of a country are established effectively by following the International Accounting Standards.
The underlying principles of Ind AS are closely aligned with the IFRS Standards, thus satisfying the requirements of the business and regulatory environment of India.

Example

In a scenario, an Indian IT company develops a customised software and provides maintenance support for two years for another organisation. They signed the project contract for INR 10 crore. The Ind AS implementation will require the company to identify the following performance obligations:

Software development
Maintenance services

Most of the practices are aligned with IFRS 15. However, there are some gaps in the contract modifications. Due to Indian regulatory expectations, Ind AS requires higher conservative judgment for collectability assessments. Read important financial exams in June 2026 to prepare for them better.

Key Differences Between IFRS and IND AS

There are some significant differences between the implementation of the IFRS and Ind AS. In some categories, Ind AS restricts the revaluation, while IFRS allows it for all assets. When working in the finance and accounting industry, an integrated ACCA course will be very beneficial.

The Ind AS follows Indian Statutes, while IFRS is on the international level, following global standards. Below is a tabular format to reflect on the key differences between the IFRS and Ind AS.

Key Aspects	IFRS	Ind AS
Development Authority Body	International Accounting Standards Board (IASB)	Institute of Chartered Accountants of India (ICAI)
Application	Globally used in more than 120 countries	Specific entities in India
Regulatory Authority Body	IFRS Foundation	Ministry of Corporate Affairs (MCA)
First-time Adoption	IFRS 1 establishes guides for first-time adoption	Ind AS 101 guides similarly to IFRS, with additional requirements specific to India
Fair Value Measurement	Integrated into investments	Flexible in situations but focuses on fair value
Revaluation Model	Allowed for assets like property, equipment, and plant	Allowed for assets like buildings and land
Revenue Recognition	IFRS 15 reflects revenue recognition on contracts with customers	Ind AS 115 aligns with IFRS 15; however, the interpretation is a bit different
Impairment of Assets	One-step approach for impairment testing	Two-step approach for impairment testing
Financial Statements	Flexibility in presentation	As per Indian Law, it requires specific formats
Borrowing Costs	Allows capitalization Attributes to a qualifying asset	Additional details related to tax benefits
Income Taxes	Guidelines for deferred liabilities and tax assets	Indian-specific adjustments, related to taxation
Leases	IFRS 16 recognizes all leases on the balance sheet	Ind AS 116 has minor differences compared to IFRS in implementation

Why IFRS and Ind AS are Different?

The IFRS and Ind AS are different because they accommodate the legal, business, and economic requirements differently. The IFRS follows these factors as an international standard, while the Ind AS is more accommodating to the requirements, regulatory provisions, and incorporates amendments in India.

The Ind AS needs to be different from IFRS because it must focus on the financial economy of India, the legal requirements, and other necessary standards. Henceforth, both the IFRS and Ind AS are implemented in India in a converged phased manner.

The small and large companies reflect transparency and consistency in their financial reporting. Financial statements are produced and compared without the concern of identifying differences in data and information to ensure smoother transitions. Read the IAS vs IFRS comparison, which will shed some light on the different types of financial standards used by companies.

Significance of IFRS and IND AS Convergence

The convergence of IFRS and Ind AS has several benefits. In India, organizations and companies work for both the domestic and international markets. Henceforth, they find it easier to perform efficiently in the financial market. You can also read about the eligibility for IFRS certification, so that as professionals, it will benefit you.

Improved transparency

With the convergence of IFRS and Ind AS, the financial reporting is accurate. This helps in instilling confidence among investors to connect with a company or a brand and invest money in their products or services in their market.

Global comparability

With the integration of IFRS with the Ind AS, the financial statements of companies become more accessible. They are easily comparable to other financial institutions and companies on the global platforms.

Regulatory Compliance

The convergence of the two Standards sets helps bring ease into the international trade system in India. The process is integrated into the financial regulations compliance among companies and brands in India.

Attracting Investments

Foreign investments increase significantly with the convergence of IFRS and Ind AS in the Indian economic market. The alignment with the global standards makes it easier for Indian companies to function and collaborate with international brands and companies.

Challenges of IFRS and IND AS Convergence

With the convergence of Ind AS and IFRS, there come some challenges. Candidates must learn about the IFRS course & syllabus details to compare the minute differences. Below are some challenges that companies and individuals face while working in the financial sector with the integration of the IFRS standards.

System overall - companies might not be able to adopt and implement IFRS and Ind AS together effectively. The accounting systems need to be upgraded, which might lead to the overall!

Cost of Transition - with the integration of the new standards, the operational investments develop effectively. Furthermore, the process becomes costly.

Training and Awareness - to develop an understanding of the new standard, all professionals require extensive training.

Interpretation gaps - there are gaps in the interpretation of the Standards, leading to inconsistency in the practices of companies.

Wrapping Up!

In conclusion, the comparison between IFRS vs Ind AS reflects some significant processing differences while implementing in professional and investor practices. Businesses integrate the convergence of IFRS and Ind AS in India, leading to enhanced comparability, accuracy, and transparency. India moves forward with the integration of IFRS on a global scale, retaining its identity while performing business effectively.

Frequently Asked Questions on the Difference between IFRS and IND AS

What is Indian GAAP called?

The Indian GAAP is called Generally Accepted Accounting Principles and is used by companies based in India or primarily functioning in India for their financial reporting purposes.

What are the six capitals of IFRS?

There are six capitals of IFRS, which are integrated to create value for the organization: manufactured, social & relationship, financial, natural, human, and intellectual.

Why was IAS replaced by IFRS?

The IFRS has replaced by IAS because it was inconsistent, complex, and at times impractical in the financial world. In recent years, standards have needed to be more specific and define the requirements of companies and institutions functioning in the accounting world.

Is IFRS accepted in India?

The International Accounting Standards Board (IASB) has issued IFRS, which is universally accepted. Similarly, accountants working in MNCs in India use IFRS-based accounting standards called Ind AS.