Accounting Standards and IFRS

Accounting Standards and IFRS

Accounting Standards 

Accounting standards are the policy documents guiding the measurement, treatment and disclosure of financial or accounting transactions. It can thus be said that Accounting Standards are the guidelines for accounting policies and practices to be adopted and followed in accounting and presentation of financial statements. 

International Financial Reporting Standards (IFRS)

IFRS are the international accounting standards on the basis of which financial statements of enterprises are prepared and presented to its users. 

Difference between IFRS and GAAP or As

1. IFRS are principle based while Indian GAAP or As are rule based.
2. IFRS are based on fair value concept while Indian GAAP or AS are based on Historical Cost Concept.