AS 3 V/S IFRS

IFRS

Indian GAAP

Bank overdrafts

Considered as financing activities

Extraordinary
items

Classified as arising from operating, investing or

financing activities as appropriate, and separately
disclosed

Included as cash and cash equivalents if they form

an integral part of an entitys cash management

As presentation of items as extraordinary is not

permitted, the cash flow statement does not reflect
any items of cash flow as extraordinary

AS 3 V/S IFRS
IFRS

Indian GAAP

Acquisition and
disposal of
properties held
for rental to
others

Interest and
dividend

No specific guidance

For Financial enterprises:

Interest paid and interest and dividend received
are to be classified as operating activities.
Dividend paid is to be classified as financing
activity.
For other enterprises:
Interest and dividends received are required to be
classified as investing activities. Interest and
dividends paid are required to be classified as
financing activities

Entities might routinely sell items

of property, plant and equipment that they have
previously held for rental to others. Cash
payments/ receipts in respect of acquisition/
disposal of such assets are classified as operating
activities

May be classified as operating, investing or

financing activities in a manner consistent from
period to period

AS 3 V/S IFRS
IFRS

Indian GAAP

changes in
ownership
interest

No specific guidance

Changes in ownership interest in a subsidiary

without loss of control are treated as financing
activities

AS 6 V/S IFRS
IFRS

Indian GAAP

Depreciation

Change in
Method of
Depreciation

It does not require assets to be componentized

and depreciated separately, although it states that
such an approach may improve accounting of
fixed assets
Schedule II to the companies act defines the
useful life of assets based upon their nature; a
different natural life can be used post disclosure
and backing by a technical advice
The schedule mandates componentization of
fixed assets for depreciation

It requires retrospective re-computation of

depreciation, and any deficit or excess is adjusted
in the period in which such change is effected
Such change is disclosed and quantified

Property, plant and equipment are componentized

and depreciated separately; also, this standard
does not have a concept of minimum statutory
depreciation

Changes in method of depreciation are considered

as change in accounting estimate and applied
prospectively

AS 6 V/S IFRS
IFRS

Indian GAAP

Methods of
Depreciation

Straight line method, diminishing balance

method and units of production method

Depreciation is allocated by various methods

based on systematic usage over life of an asset;
method include straight line method, diminishing
balance method and units of production method
Depreciation method based on revenue is not
applicable