Difference Between Ind AS and IFRS with Examples (2026 Practical Guide)

What Are Ind AS and IFRS?

Prior to going into the differences, it's critical to fully understand the true meaning and structure of Ind AS and IFRS. Let's analyse each one separately.

1. IFRS

IFRS stands for International Financial Reporting Standards. It is issued by the International Accounting Standards Board (IASB) and is used in over 140 countries. The goal is a single global financial reporting language so that a company’s financials in Germany are comparable to those in Australia.

2. Ind AS

Ind AS stands for Indian Accounting Standards. It is issued and maintained by the Institute of Chartered Accountants of India (ICAI) in coordination with the National Advisory Committee on Accounting Standards (NACAS). It is based on IFRS but includescarve-outs—areas where India has deliberately chosen a different treatment.

A simple way to remember it

• IFRS = original recipe
• Ind AS = same recipe adapted for the Indian kitchen

Same base, but a few key ingredients have been substituted or removed.

Key Differences Between Ind AS and IFRS: Overview Table

Before going into the details, here's the big picture. These differences between Ind AS and IFRS exist at both the structural and application levels:

This table gives you the framework. Now let's go into the differences that actually matter, in exams, in audits, and in practice.

Detailed Differences Between Ind AS and IFRS

While the overall framework of Ind AS and IFRS is similar, the real differences emerge in specific standards and their application. Let’s examine the most important ones you’ll encounter in exams and practice.

1. Revenue Recognition: Ind AS 115 vs IFRS 15

Both standards are based on the same 5-step revenue recognition model. The core framework is identical. But there is a carve-out in Ind AS 115 that matters.

The difference

Under IFRS 15, when an entity licenses intellectual property, such as software or a brand, the classification as “point in time” or “over time” depends on specific criteria.

Ind AS 115 introduces an additional condition for this classification that is not present in IFRS 15, giving Indian companies slightly more flexibility in timing revenue.

Revenue – IFRS 15 handbook - by KPMG

Exam tip

When a question involves IP licensing or SaaS-style contracts, check whether the standard being applied is Ind AS or IFRS. The classification of the performance obligation can change.

2. Instruments of Finance: Ind AS 109 vs IFRS 9

This is one of the most significant areas of difference and one that confuses students the most.

The carve-out

Under IFRS 9, certain investments in equity instruments can be irrevocably designated at Fair Value Through Other Comprehensive Income (FVTOCI). Gains and losses go through OCI and are never recycled to profit or loss, even on derecognition.

Ind AS 109 follows the same treatment except for investments in subsidiaries, associates, and joint ventures. Those are measured at cost under Ind AS in separate financial statements rather than fair value, which is what IFRS 9 would require.

Practical impact

In real audits, this matters because the balance sheet of an Indian holding company will often look materially different from a global counterpart reporting under IFRS, even if the underlying investments are identical.

3. Other Comprehensive Income (OCI): Recycling Treatment

This is where most students get confused, and where the differences become particularly sharp.

Under IFRS

Certain items in OCI can be recycled, that is, reclassified to profit or loss in a later period when a related gain or loss is realized. Examples include:

• Currency translation differences
• Gains/losses on cash flow hedges

Under Ind AS

Ind AS has a carve-out that prohibits recycling for certain items. Specifically, actuarial gains and losses on defined benefit plans recognized in OCI under Ind AS 19 cannot be recycled to profit or loss, ever.

Under IAS 19, the treatment is the same here, but for equity instruments classified at FVTOCI, Ind AS prohibits recycling, while the IFRS 9 framework is technically aligned, making this an area of nuanced application.

Why it matters practically

A company with significant pension obligations, such as a large public sector undertaking, will show OCI treatment of actuarial changes differently from a European company on IFRS. Total Comprehensive Income may look similar, but the split between P&L and OCI, and what flows back to retained earnings, differs.

4. Presentation of Financial Statements: Ind AS 1 vs IAS 1

Under IAS 1 (IFRS)

A company can present expenses in either:

• By nature: raw materials, employee costs, depreciation
• By function: cost of sales, distribution costs, administration costs

Either format is acceptable.

Under Ind AS 1

The same flexibility exists, but Schedule III to the Companies Act 2013 mandates a specific format for Indian companies. In practice, Indian companies follow a more prescribed presentation than pure IFRS allows.

Exam trap

Students often assume that because Ind AS 1 is based on IAS 1, the financial statement format is identical. It is not, because the Companies Act overlay exists for Indian entities.

5. First-Time Adoption: Ind AS 101 vs IFRS 1

Both have a standard for first-time adoption, but the exemptions available differ.

Key difference

Ind AS 101 provides certain India-specific exemptions not available under IFRS 1. For example, Indian companies transitioning to Ind AS were allowed to use deemed cost for property, plant & equipment by using the carrying amount under previous GAAP (Indian GAAP) as the opening Ind AS value.

This was a practical relief that simplified the transition enormously.

IFRS 1 also has deemed cost options, but the specific reliefs and transition date rules differ, particularly around business combinations that occurred before the transition date.

Real-World Examples: How This Plays Out in Actual Financial Statements

Theoretical differences are easier to remember when you see how they appear in real financial statements. Here are practical examples from companies reporting under Ind AS and IFRS.

1. Infosys, Ind AS Reporting

Infosys Limited prepares its consolidated financial statements under Ind AS and also files Form 20-F with the US SEC, reconciling to US GAAP.

In their annual reports, you will notice that OCI items, including remeasurement of defined benefit plans, are presented separately and clearly marked as items that will not be reclassified to profit or loss. This directly reflects the Ind AS treatment discussed above.

You can review Infosys’s financial statements and accounting policies at their investor relations page: Financial Statements & Policies of Infosys

2. Unilever, IFRS Reporting

Unilever PLC (listed in London) reports under IFRS as adopted by the UK. In their financial statements, you'll see the full IFRS 9 treatment for financial instruments, IFRS 15 revenue policies without India-specific carve-outs, and IAS 19 pension disclosures that follow the international format without the Ind AS restrictions on recycling.

Comparing even one note from Infosys's Ind AS financials with Unilever's IFRS financials, say, the revenue recognition policy note, is one of the most useful practical exercises you can do.

3. Deloitte's Comparison Resource

For authoritative reference on Ind AS vs IFRS differences, Deloitte maintains a detailed comparison document through its DART (Deloitte Accounting Research Tool) platform.

Their publication "IFRS and Ind AS: A Comparison" is regularly updated and is the go-to resource used by Big 4 professionals.

Ind AS vs IFRS, Quick Exam Revision Table

Why Do IND AS & IFRS Differences Exist?

India’s decision to converge rather than fully adopt IFRS was deliberate, and understanding why helps you remember the differences more easily.

1. India-specific economic conditions

India has a large number of SMEs, public sector undertakings, and co-operatives with unique financing structures. Full IFRS adoption would have created a significant compliance burden and economic volatility in reported numbers.

2. Regulatory environment

The Companies Act 2013, SEBI regulations, RBI guidelines for banking companies, and IRDAI rules for insurance are Indian regulatory frameworks that do not have direct equivalents in the IASB world. Ind AS had to be designed to coexist with them.

3. Conservative approach to fair value

IFRS leans heavily on fair value measurement. India’s accounting culture has historically been more conservative, preferring historical cost. Carve-outs related to fair value, especially for financial instruments in separate financial statements, reflect this preference.

Which One Matters More for Your Career?

The relevance of Ind AS vs IFRS depends on your career path. Whether you’re a student, working professional, or aiming for global roles, the priority shifts accordingly.

1. If you are a CA student

Ind AS is what your exams test and what your clients follow. Focus here first. Understand the carve-outs specifically, because those are the areas examiners love to test.

2. If you want to work in global finance or at an MNC headquarters

IFRS becomes critical. Multinational groups often report consolidated accounts under IFRS, with Indian subsidiaries providing local Ind AS numbers that are then converted for group reporting.

3. If you are aiming for a Big 4 or a listed company role

You will need both. In practice, Big 4 professionals routinely deal with GAAP conversions, taking Ind AS numbers and restating them under IFRS or US GAAP for cross-border transactions, due diligence, or group consolidations.

Understanding where the standards diverge is a practical, billable skill.

FAQs

1. What are the main differences between Ind AS and IFRS?

The primary differences between Ind AS and IFRS lie in the carve-outs, deliberate modifications that India made to IFRS standards before adopting them as Ind AS. Key areas include treatment of investments in subsidiaries in standalone financial statements, OCI recycling restrictions, certain revenue recognition nuances for IP licences, and the overlay of Indian regulatory formats (Schedule III) on financial statement presentation.

2. Is Ind AS the same as IFRS?

No. Ind AS is converged with IFRS, but not identical to it. India chose convergence (adapting IFRS to Indian conditions) rather than full adoption (using IFRS as-is). The result is a set of standards that are broadly similar but have specific, important differences, especially the carve-outs.

3. Why did India not adopt IFRS fully?

India didn't fully adopt IFRS due to conflicts with existing Indian laws (like the Companies Act), the regulatory requirements of bodies like SEBI and RBI, concerns about fair value volatility in a developing market context, and the readiness of India's accounting infrastructure for full IFRS compliance at the time of convergence.

4. What is the ifrs and ind as difference between IFRS and IND in OCI treatment?

Under IFRS, more items in OCI can be recycled (reclassified) to profit or loss in future periods. Under Ind AS, certain items, particularly actuarial gains and losses on defined benefit plans, cannot be recycled. This means they permanently remain in equity and never flow through the income statement, impacting how comprehensive income is analysed.

5. Which standard should CA students focus on?

CA Final students must focus on Ind AS, as that's what the ICAI syllabus and exams test. However, a working knowledge of how and where IFRS differs is valuable for practice, especially if you're heading into audit of listed companies, FEMA transactions, or cross-border work.

Conclusion

Understanding the differences between Ind AS and IFRS is not just an exam exercise; it directly shapes how companies report profits, value assets, and communicate financial health to the world. Whether you're preparing a set of consolidated financials, advising a client on a cross-border acquisition, or simply trying to make sense of two companies' balance sheets that don't quite match, this knowledge is immediately applicable.

Once you see the why behind each difference, the what becomes a lot easier to remember. And the next time someone hands you two sets of financials, one Ind AS, one IFRS, you'll know exactly where to look first.