Understanding the US GAAP with Indian GAAP.With the globalization and advancement of India, Indian accountant professionalsIAP are not only required to follow the India AS but also required to follow the US GAAP, as many MNC are doing the accounting job from India and IAP are not require to prepare the financials for Indian company but also financials for other countries also.Its not only financials, but also various legal tax compliances for other countries The IAP are doing the same either onsite or offsite.In the article given below, we try to understand few concepts of US GAAP.Some of these major differences between US GAAP and Indian GAAP which give rise to differences in profit are highlighted hereunder 1.Underlying assumptions Under Indian GAAP, Financial statements are prepared in accordance with the principle of conservatism which basically means Anticipate no profits and provide for all possible losses.Under US GAAP conservatism is not considered, if it leads to deliberate and consistent understatements.Prudence vs. Yaesu Frg 9600 Manual Download . The Institute of Chartered Accountants of India ICAI has been structuring Accounting Standards based on the International Accounting Standards IAS, which employ concepts and prudence as the principle in contrast to the US GAAP, which are rule oriented, detailed and complex.It is quite easy for the US accountants to handle issues that fall within the rules, while the International Accounting Standards provide a general framework of accounting standards, which emphasise substance over form for accounting.These rules are less descriptive and their application is based on prudence.US GAAP has thus issued several Industry specific GAAP, like SFAS 5.Cable TV, SFAS 5.Record and Music Industry , SFAS 5.Motion Picture Industry etc.Format Presentation of financial statements Under Indian GAAP, financial statements are prepared in accordance with the presentation requirements of Schedule VI to the Companies Act, 1.On the other hand, financial statements prepared as per US GAAP are not required to be prepared under any specific format as long as they comply with the disclosure requirements of US GAAP.Financial statements to be filed with SEC include.Consolidation of subsidiary companies Under Indian GAAP AS 2.ASP-Report-Maker_1.png' alt='Asp Report Maker 5 Crackers' title='Asp Report Maker 5 Crackers' />
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