Ind AS vs IFRS vs AS: what actually differs.

What is Ind AS?

Ind AS (Indian Accounting Standards) is the accounting framework notified by the Ministry of Corporate Affairs (MCA) under the Companies (Indian Accounting Standards) Rules, 2015. It is India's implementation of IFRS for companies above specified size and listing thresholds. Before Ind AS, and still today for companies below those thresholds, Indian companies followed AS — the standards issued under the Companies (Accounting Standards) Rules, 2006, commonly called Indian GAAP or "old AS."

The confusion practising CAs run into is assuming Ind AS is IFRS. It isn't — it is IFRS-converged, not IFRS-adopted. That distinction, and knowing exactly where the two diverge, is the difference between a clean Ind AS opinion and a restatement.

IFRS-converged, not IFRS-adopted — what that means

A small number of jurisdictions adopt IFRS wholesale, word for word, issued by the IASB. India did not do that. Instead, the MCA took each IFRS standard as a base and issued a corresponding Ind AS with:

• The same numbering logic — Ind AS 115 corresponds to IFRS 15, Ind AS 116 to IFRS 16, Ind AS 109 to IFRS 9, and so on, so the mapping is largely predictable.
• The same core recognition and measurement principles in most areas — fair value use, the expected credit loss model, lease capitalisation, the acquisition method for business combinations.
• A limited set of deliberate carve-outs — for example, Ind AS 103 permits pooling-of-interests accounting for certain common-control business combinations, which IFRS 3 does not allow at all.
• India-specific transition and presentation rules — first-time adoption under Ind AS 101 with India-specific exemptions, and a mandated Schedule III, Division II presentation format that has no direct IFRS equivalent (IFRS itself is principles-based on presentation, with no prescribed statutory format).

Practically: a company that is fully Ind AS compliant is very close to IFRS compliant, but cannot claim IFRS compliance without checking each carve-out and confirming it wasn't used. This matters directly for group reporting — an Indian subsidiary consolidating into a foreign IFRS-reporting parent still needs an Ind AS-to-IFRS reconciliation, it isn't automatic.

Who must apply Ind AS vs old AS

Applicability is phased by net worth and listing status under the MCA roadmap, and it flows down through group structures — once one company in a group is covered, its subsidiaries, associates and joint ventures generally follow. Net-worth thresholds have been revised by MCA notification before, so treat the exact figure below as the current understanding, not gospel — verify on the MCA portal before advising a client on borderline applicability.

Verify the current net-worth threshold and phase-in dates on the MCA portal (mca.gov.in) before relying on this for a specific applicability opinion — these figures are set by rule amendment, not by the standards themselves.

Standard-by-standard: IFRS vs Ind AS vs old AS

The table below covers the four areas where the three frameworks diverge most visibly in practice — revenue, leases, financial instruments and PPE — plus business combinations and presentation format, which is where CAs most often get tripped up during a first-time transition.

Practical notes for a practising CA

• First-time adoption is where the real work is. Ind AS 101 governs the transition from old AS to Ind AS — mandatory and optional exemptions, restated opening balance sheet, and a reconciliation of equity and profit between the two frameworks. Budget this as a distinct, judgement-heavy engagement, not a mechanical remapping exercise.
• Don't assume "Ind AS compliant" means "IFRS compliant." Check whether the entity has used any India-specific carve-out (the AS 103 pooling-of-interests option is the classic one) before signing off on an IFRS reconciliation for a foreign parent or lender.
• Deferred tax gets bigger under Ind AS. More fair-value adjustments (ECL provisions, FVOCI investments, right-of-use assets) mean more temporary differences than under old AS's cost-based model — DTA/DTL working papers need to be more granular, not just carried forward from the old-AS numbers.
• Schedule III, Division I vs Division II is a common filing error. An Ind AS company that files financials in the Division I format (or vice versa) will get flagged — confirm which division applies before finalising the balance sheet and statement of profit and loss format, not after.
• Leases move the balance sheet, not just the notes. Under old AS an operating lease was off-balance-sheet rent expense; under Ind AS 116 almost every lease becomes a right-of-use asset and a lease liability. This changes debt-equity ratios and EBITDA presentation — flag it to clients and lenders before the transition year, not after the covenant breach.

Where TatvaBooks fits

TatvaBooks is built for GST-correct day-to-day bookkeeping and standard Schedule III financial statements for SMEs and their CAs — it is not an Ind AS reporting or consolidation tool, and companies mandatorily on Ind AS will still need dedicated first-time-adoption and consolidation workpapers outside any bookkeeping software. If your practice serves a mix of old-AS SMEs and Ind AS-covered group entities, TatvaBooks keeps the SME side — invoicing, GST, GSTR-2B reconciliation, and Schedule III-ready statements — clean and current, so your team's time goes to the Ind AS engagements that actually need it. See what's included on the TatvaBooks for CAs page.

Frequently asked questions