Differences between AS and IND AS including Carve In and Carve Out, a video lecture by CA Vinod Kumar Agarwal.
Following table provide a quick glance on differences between new standards (Ind-AS) and existing standards (AS):-
| Sr. no | Area | Ind-AS (Indian Accounting Standards as converged with IFRS) | Indian Accounting Standards |
| 1 | Substance | Ind-AS are generally substance based. For example, consolidation is required under Ind-AS 110 if the holdingcompany has control over its subsidiary and definition of control is substance based. | Indian Accounting Standards (‘AS’) are generally rule based and are less flexible. For example as per AS 21, consolidation is required if a company holds more than 50% of the voting rights or control the board of directors |
| 2 | Applicability | Ind-AS will be applicable in phases to mainly large companies (see table given above in this article) | AS applicable to not only the companies, but to other entities as well. To the companies, notified standards under company rules are applicable and for other entities, AS published by ICAI are applicable |
| 3 | Guidance | Ind-AS generally use the word –“shall” in its guidance, which makes it more strict. | AS generally use the word “Should” which is more advisory in nature |
| 4 | New Standards | Ind-AS provide guidance on various transactions like agriculture, business combinations etc. | These guidance were not existing in AS. |
| 5 | Interpretations | Ind-AS has incorporated various interpretations which are part of IFRS, thus making it comprehensive | Various guidance notes and other publications are available along with AS in existing scenario |
| 6 | Conceptual Differences | There are specific guidances on various matters like depreciation or revenue recognition | AS contains subjectivity at quite a few places. |
