|Particulars||IFRS||US GAAP||Indian GAAP|
|Deferred income taxes – general approach||Full provision method is used (some exceptions) driven by balance sheet temporary differences. Deferred tax assets are recognised if recovery is probable (more likely than not).||Similar to IFRS but with specific differences in application.||Full provision method is used driven by timing differences arising from taxable and accounting income. Deferred tax assets is recognised if realization is virtually certain or reasonably certain as applicable for entities with and without tax. carry forward losses, respectively.
A number of other specific differences.
|Fringe benefits tax||Included as part if related expenses (fringe benefit) which gives rise to incurrence of the tax.||Similar to IFRS.||Disclosed as a separate item after “profit before tax” on the face of income statement|
|Government grants||Recognised as deferred income and amortized when there is reasonable assurance that the entity will comply with the conditions attached to them and the grants will be received. Entities may offset capital grants against asset values.||Similar to IFRS, except when conditions are attached to grant. In this case, revenue recognition is delayed until such conditions are met. Long lived asset contributions are recorded as revenue in the period received.||Similar to IFRS conceptually, although several differences in detail. For e.g., in certain cases, grants received are directly credited to capital reserve (in equity).|
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