Difference Between GAAP And IFRS

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Q1. What are Main differences between Financial statements prepared under Indian GAAP, IFRS and U.S. GAAP ?
• US GAAP utilizes LIFO. Under US GAAP, current segment of long haul was delegated current Liability , though Under Indian GAAP there was no such Compulsion. As Result, not Interest Accrued on Long Term Debt ,or current segment of long haul obligation was a current Liability under the Indian GAAP.
• US GAAP Provided Detailed Rules for Valuation of budgetary instruments, including subsidiaries , though Indian GAAP gave no Comprehensive Guidance on Derivatives.
• Under Indian GAAP , an endeavour was allowed to revalue its resources for mirror an Increase in expense of substitution , which would likewise be reflected in a higher devaluation
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• So , we can Clearly see that Objective of IFRS was to present to all partners the monetary condition of undertakings of all such holding and backup organizations in a gathering as consolidated financial element , instead of individual stand.

Q2. Evaluate the advantages and disadvantages of the three alternatives.
• Liquidity Increases.
• Cost of Equity Capital is Reduced.
• They Experience Less Earnings Management, More Time Loss Recognition and Greater Value Relevance.
• More Investment Flows through Foreign Mutual Funds.
• Comparison of Financial Statements will be Easier , in view of C.
Disadvantages of IFRS
• Some contend that Consistency can't be there even after IFRS Implementation
• Implementation of IFRS Might be troublesome as a result of Culture , Language , Legal System and Historical Practices ( Indian GAAP , if there should be an occurrence of India )
• IFRS Implementation Cost Might be an issue, for example, Training
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Which stakeholders might be concerned? What might be the consequences of this concern?

•Changing from Indian GAAP to possibly US GAAP or IFRS would likely have a critical effect on execution markers.
•The most influenced degrees would be the Current Ratio, Fixed Assets to Long-Term Debt, Debt To Equity, return on Equity and Debt Service Coverage degree.
The current degree was liable to be antagonistically influenced by the change in the arrangement to present from non-current Liabilities.
•The Fixed resources for advance degree could move either a positive or an unfriendly bearing relying upon the reasonable valuation of PP&E , the reassessment of its financial life and its leftover quality
•.The Debt-Equity Ratio would no doubt increment because of the renaming of convertible inclination imparts as obligation. Profit for Equity would enhance undoubtedly.
•The Debt-Service Coverage Ratio could Change, and was a sympathy toward Indian Banks, which had yet to set an arrangement regarding

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