Particulars IFRS US GAAP  Indian GAAP
       
Financial liability
classification		 Capital instruments are classified, depending on substance of issuer’s contractual obligations, as either liability or equity.
Mandatorily  redeemable preference shares are classified as liabilities		 Similar to IFRS but certain redeemable  instruments are permitted to be classified as ‘mezzanine equity’ (i.e., outside  of permanent  equity).

Mandatorily  redeemable instruments with a date or event-certain redemption are classified  as liabilities

 No Specific guidance. In practice, classification is based on legal form rather than substance.

All preference shares are disclosed separately as share capital under shareholder’s funds
Convertible debt Convertible debt (fixed number of shares for a fixed amount of cash) is accounted for on split basis, with proceeds allocated between equity and debt. Conventional convertible debt is usually recognised  entirely as liability, unless there is a beneficial conversion feature. Convertible debt is recognised as a liability based on its legal form without any split
Derecognition of financial
liabilities		 Liabilities are derecognized when extinguished. Difference between
carrying amount and amount paid is recognised in income statement.		 Similar to IFRS No specific guidance; in
practice, treatment would be similar to IFRS based on substance of the transaction