| Area | IGAAP (AS) | Ind AS |
|---|---|---|
| Framework basis | Historical-cost dominant; fair value the exception | Fair-value oriented — investments, financial instruments, business combinations |
| Revenue | AS 9 / AS 7 — risk-and-reward transfer | Ind AS 115 — five-step model, performance obligations, over-time vs point-in-time |
| Financial instruments | No comprehensive standard; cost or carrying conventions | Ind AS 109 — classification by business model, fair-value measurement, expected credit loss (ECL) provisioning |
| Leases | AS 19 — operating leases stay off the lessee balance sheet | Ind AS 116 — right-of-use asset and lease liability on-balance-sheet for almost all leases |
| Deferred tax | AS 22 — income-statement (timing-difference) approach | Ind AS 12 — balance-sheet (temporary-difference) approach |
| Consolidation | AS 21 — ownership-majority driven | Ind AS 110 — control model (power + variable returns), structured entities consolidated |
| Business combinations | AS 14 — amalgamations only, pooling permitted | Ind AS 103 — acquisition method, goodwill tested for impairment, no amortisation |
| Property, plant & equipment | AS 10 — cost model standard | Ind AS 16 — cost or revaluation model, component accounting mandatory in practice |
| Presentation | Schedule III Division I | Schedule III Division II — plus Statement of Changes in Equity and OCI |
| Prior-period items | AS 5 — through the current P&L | Ind AS 8 — retrospective restatement of comparatives |
Applicability in one line: listed (or listing) companies and unlisted companies with net worth ≥ ₹250 crore — plus their holding, subsidiary, JV and associate companies — apply Ind AS; everyone else stays on AS unless they volunteer, and volunteering is irreversible. Banks remain on their RBI-directed framework.
For one specific company — including the NBFC roadmap and the group-cascade test — use the Ind AS Applicability Calculator.
The framework call is the first decision in every reporting engagement — it picks Schedule III Division I or II and the entire notes structure. CORAA lets you set the framework at engagement start and switch it freely until you lock and generate; the decision tree below walks the applicability test question by question.
Schedule III statements in either Division, drafted from the mapped books — see Schedule III automation or start free: your first audit is on us.
Indian GAAP is the informal name for the Accounting Standards (AS 1–AS 29) notified under the Companies (Accounting Standards) Rules, 2021 — the framework companies outside the Ind AS net still apply. In conversation it distinguishes the older AS framework from Ind AS, the IFRS-converged standards.
Under the Companies (Indian Accounting Standards) Rules, 2015 as phased in: all listed companies (and those in the process of listing), unlisted companies with net worth of ₹250 crore or more, and the holding, subsidiary, joint-venture and associate companies of any of these. NBFCs follow the same ₹250 crore threshold under their own phase. Banks continue on their RBI-directed framework — scheduled commercial banks have not transitioned. Once a company crosses the threshold, Ind AS applies from the next financial year and continues even if net worth later falls.
Yes — any company may adopt Ind AS voluntarily, but it is a one-way street: once adopted, voluntarily or mandatorily, a company cannot revert to the AS framework.
In most transitions the big movers are: ECL provisioning on receivables and loans (Ind AS 109), leases coming on-balance-sheet (Ind AS 116) which changes EBITDA, net worth and ratios, fair-valuing investments, revenue timing under the five-step model, and deferred tax recomputed on temporary differences. Net worth itself can swing on transition — which matters because covenants and CARO/ratio disclosures read off it.
It picks the Division: AS companies present under Schedule III Division I; Ind AS companies under Division II, which adds the Statement of Changes in Equity, OCI presentation and a different notes structure. NBFC-Ind AS companies use Division III. The framework decision therefore shapes the entire financial-statement layout, not just measurement.
ICAI has long been working on revised AS for non-Ind AS companies, but the notified framework remains the Companies (Accounting Standards) Rules, 2021. Track ICAI/MCA announcements before assuming any change in a report — and note the audit-standards side is moving separately (revised standards expected as IndSAs).
