Library / Comprehensive Guide to Indian Accounting Standards (Ind AS)

PART 7: India-Specific Carve-Outs and Carve-Ins

These are modifications India made to IFRS when creating Ind AS. They are important for exams, interviews, and practical application because they represent areas where Indian practice DIFFERS from global IFRS practice.

Standard	IFRS Treatment	India’s Carve-Out / Carve-In
Ind AS 40 (Investment Property)	Choice: Cost Model OR Fair Value Model	ONLY Cost Model allowed. Fair value must be disclosed in Notes but not used for measurement.
Ind AS 103 (Bargain Purchase Gain)	Gain recognised immediately in P&L	Gain first reduces certain asset categories; remainder goes to OCI / Capital Reserve (NOT P&L).
Ind AS 101 (First-time Adoption)	IFRS 1 provides a standard framework	India added extra exemptions: deemed cost for PPE using old GAAP carrying amount, capitalised forex on long-term items.
Ind AS 21 (Foreign Exchange on Long-term Items)	Exchange differences go to P&L	India provided an option (Para D13AA) to capitalise forex differences on long-term foreign currency monetary items to PPE/intangibles during transition.
Ind AS 109 (Day 1 Gain/Loss)	Gain/loss on financial instruments at initial recognition goes to P&L	India deferred Day 1 gain/loss recognition for certain instruments where fair value is not evidenced by observable market data.
Ind AS 17/116 (Leases of Land)	Land leases treated same as other leases	India had specific treatment for certain land leases under government schemes during transition.