Finance | US and Indian GAAP

FINANCE
U.S. AND INDIAN GAAP

INTRODUCTIONINTRODUCTION
• United States of America and India uses Generally Accepted
Accounting Principles (GAAP).
• In some aspect Indian form of GAAP is different from United States
of American GAAP.
• Some of the notable differences that can be identified are format
of presenting the financial statements, presentation of cash flow
statement, depreciation, analyzing the long term debts,
presentation of consolidation of subsidiary accounts, realizing the
investments, research and development of expenditure and many
more.
• The most prominent one is the representation of investments in
the balance sheet of the company.

CONTEXTCONTEXT
• As per Indian Generally Accepted Accounting Principles
(GAAP), the realization of the investments is different in
comparison to United States of American Generally
Accepted Accounting Principles.
• As per Indian GAAP accounting standard board
investments are mainly classified into three categories.
They are as follows:
• Current Investments
• Long-term Investments
• Investment Property

CONTEXTCONTEXT
• As per United States of America accounting standards
the investments are being classified under three major
heads. They are as follows:
• Held to Maturity
• Trading Security
• Available for sale