What are the new accounting norms impacting Indian businesses?

New accounting norms are being introduced for overseas business operations, creating a need to reconcile differences between ICDS and IndAS.

What is the challenge with aligning ICDS and IndAS?

The primary challenge lies in the differences between ICDS and IndAS, requiring modifications or reconciliation, with amending IndAS being particularly difficult due to its alignment with international standards.

Why is amending IndAS difficult for Indian companies?

Amending IndAS is difficult because it is already aligned with International Financial Reporting Standards, which is essential for Indian companies to maintain global financial comparability.

Home / Business and Economy / Accounting Norms Shift: ICDS vs. IndAS Clash

Accounting Norms Shift: ICDS vs. IndAS Clash

23 Feb

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Summary

New accounting norms are being introduced for overseas business operations.
Differences between ICDS and IndAS require modification or reconciliation.
Amending IndAS is difficult due to alignment with international standards.

Accounting Norms Shift: ICDS vs. IndAS Clash

New accounting norms are on the horizon for companies managing overseas business operations. This development highlights potential discrepancies between India's Income Computation and Disclosure Standards (ICDS) and Indian Accounting Standards (IndAS).

According to experts, areas where ICDS and IndAS already align present no immediate issues. However, divergences necessitate a clear path forward.

Possible solutions include revising ICDS to match IndAS, amending IndAS itself, or implementing a reconciliation process for differing treatments.

Amending IndAS is particularly challenging. This is because IndAS is designed to align with International Financial Reporting Standards (IFRS). This alignment is vital for ensuring Indian companies' financial statements are recognized and comparable on a global scale.

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