|Particulars||IFRS||US GAAP||Indian GAAP|
|Inventories||Carried at lower of cost and net reliable value. FIFO or weighted average method is used to determine cost. LIFO prohibited
Reversal is required for subsequent increase in value of previous write downs.
|Similar to IFRS; however, use of LIFO is permitted.
Reversal of write-down is prohibited
|Similar to IFRS|
|Biological assets||Measured at fair value less estimated point-of-sale costs||Not specified. Generally historical cost used.||Not specified, Generally
historical cost used.
|Depends on classification of investment – if held to maturity or loans and receivables, they are carried at amortized cost; otherwise at fair value. Unrealized gains/losses on fair value through profit loss classification (including trading instruments) is recognised in income statement. Unrealized gains and
losses on available for sale investments are recognised in equity.
|Similar accounting model to IFRS, with some detailed differences in application. for example, no ability to designate
financial assets at fair value through profit or loss except certain hybrid financial instruments with the adoption of FAS 155.
|Long-term investments, loans and receivables are carried at cost less impairment; whereas current investments are carried at lower of cost and fair value.
Any reduction in the carrying amount and any reversal of such reduction is charged or credited to income statement.
Industry-specific guidance applies e.g. banking and insurance.
|Derecognition of financial assets||Financial assets are derecognized based on
risks and rewards first; control is secondary test.
|Derecognized based on control. Requires legal isolation of assets even in
|Limited guidance. In
based on transfer of risks and rewards.
Guidance note issued by ICAI on securitization requires derecognition based on control.
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