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Particulars
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Indian GAAP
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US GAAP
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IFRS
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9. Share Issue Expenses
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May be accounted for as deferred exp. and amortized.
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Exp. are written off when incurr. against proceeds of capital.
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There is no specific requirement under IFRS.
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10. Dividends
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Dividends are reflected in the financial statements of the year to which they Relate even if proposed or approved after the year end.
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Dividends are accounted for when approved by the Board / shareholders. If the approval is after the year end, the dividend is not considered as a subsequent event to adjust the financials.
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Dividends are classified as a financial liability and are reported in the income stat. as an expense. If dividends are declared subsequent to the balance sheet date, it is not recognized as a liability.
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11. Leases
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Similar to US GAAP but, no quantitative thresholds defined.
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Leases are classified as capital and operating leases as per certain criteria.Capital leases are included under property, plant and equipment of the lessor. Lease rentals on operating leases are expensed as incurred. Quantitative thresholds have been defined.
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Similar to US except that the criteria for distinguishing between capital and revenue leases is different.
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12. Prior period adjustments
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Prior period items are separately disclosed in the current statement of Profit and Loss together with their nature and amount in a manner that their impact on current profit and loss can be perceived.
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Correction of an error in previously issued financial statement is recognized by restating previously issued financial statements.
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Prior period errors are generally corrected in the curr. financial stat.However, where the error is of such significance that the prior period financial stat. cannot be considered to have been reliable at the date of their issue, the error should be corrected by adjusting the opening retained earnings.
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