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Rohit Valiyan· 8 years ago
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Are Indian Accounting Standards better than IFRS?

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Replying to the question above
Answered on05/12/26

Indian Accounting Standards (Ind AS) are largely based on IFRS but adjusted according to Indian business and regulatory requirements. IFRS is used internationally and helps companies maintain globally comparable financial reporting. Ind AS was introduced to bring Indian accounting closer to global standards while still fitting India’s economic environment. For multinational businesses and investors, IFRS-style reporting usually improves transparency and comparability. Honestly, for regular people and small businesses, these technical differences may not matter much directly, but for large companies, investors, and finance professionals, accounting standards play a very important role in financial reporting and global business trust.

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Ved Tiwari
Two decades of chartered accountancy — turning complex financial and business realities into writing that professionals and decision-makers can actually use.
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Ved Tiwari is a Chartered Accountant (CA) and finance writer with over 20 years of professional experience in taxation, auditing, financial planning, and business advisory. He is a Fellow Member of the Institute of Chartered Accountants of India (ICAI) — one of the most rigorous professional qualifications in Indian finance — and holds a Bachelor of Commerce (B.Com Honours) from Shri Ram College of Commerce (SRCC), Delhi University. His content covers personal finance, corporate taxation, GST, investment strategy, business compliance, financial planning, and India's evolving regulatory and economic landscape. His work has appeared on platforms including Moneycontrol, The Economic Times Wealth, and CA Club India, where he writes for finance professionals, business owners, and informed readers who need content built on two decades of real-world financial practice — not surface-level commentary. Over 20 years, Ved has advised hundreds of businesses and individual clients on taxation, audit compliance, and financial restructuring. He has handled complex multi-crore audits, represented clients before tax authorities, and guided startups and established firms through India's regulatory environment. He has published 400+ articles on finance and business, spoken at ICAI seminars and industry finance conferences, and is a practising member of the ICAI Western Region chapter. Across all his writing, every figure is verified, every regulatory reference is current, and every recommendation reflects the same professional standard he applies to his clients — because in finance, accuracy is not optional.

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Replying to the question above
Updated on05/13/26

I don’t exactly think so. But before we go into that further, let’s note one thing. Generally Accepted Reporting Principles of India are standards designed to suit the specific needs and challenges of businesses in India. So, at times, it would be quite unjust to compare it with IRFS.

That being said, sooner or later, India will take up International Financial Reporting Standards to level up with international market and to stay competitive on the global scene.

Now coming to comparing both of these, I think one of the biggest drawbacks of Indian GAAP is that its leading authority is Ministry of Corporate Affair – a part of government, which can be easily influenced with political motives. On the other hand, the leading authority of IFRS is International Accounting Standards Board (IASB), a complete separate entity that is comparatively less influenced by political motives. So you can expect much less corruption, inflexibility, and partiality in IFRS than GAAP.

Other than that, I think Indian GAAP is much more robust and favorable to small and medium-scale businesses. Be it in cash flow statements, historical cost, depreciation—you will find GAAP much more robust and friendly.

So yeah, in certain departments, GAAP take the large piece of cake. In others, it is IFRS who wins hands down.

Ramesh Kumar
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