—Guide
Ind AS vs IFRS: Reporting for Indian Subsidiaries of Foreign Groups
How Indian subsidiaries of foreign groups handle two sets of reporting: Indian statutory accounts and IFRS packs for the parent, and how to keep them aligned.
An Indian subsidiary of a foreign group usually has two reporting masters. Its statutory accounts must follow Indian standards and be filed with the ROC. Its parent, meanwhile, needs figures under IFRS or another framework for group consolidation — often monthly or quarterly. This guide explains how the two fit together.
Statutory Accounts in India
The Indian company's statutory financial statements must follow Indian standards: the Accounting Standards for most companies, or Ind AS where the company meets the thresholds or is part of an Indian Ind AS group. A foreign parent reporting under IFRS doesn't by itself bring the Indian subsidiary into Ind AS — the tests are about listing, net worth and Indian group relationships.
Group Reporting to the Parent
The parent sets its own reporting requirements, usually through a reporting pack: a template of figures and disclosures prepared under its framework, to its timetable. The Indian team typically prepares this from its local books, adjusting for differences between Indian standards and the parent's framework.
Ind AS and IFRS: Close, Not Identical
Where the Indian subsidiary follows Ind AS, the gap to IFRS is small, because Ind AS is converged with IFRS. There are some carve-outs specific to India, and differences can also arise from choices made on first-time adoption, but reconciling is usually straightforward.
Where the subsidiary follows the older Accounting Standards, the gap is bigger — for example on leases, financial instruments and revenue — and a more substantial set of adjustments is needed each period.
Common Reconciling Items
- Lease accounting, where leases are off balance sheet under the older standards.
- Expected credit loss provisions on receivables.
- Timing of revenue recognition under customer contracts.
- Share-based payments for group ESOPs or RSUs granted to Indian employees.
- Transfer pricing adjustments and intercompany recharges.
Making It Work
- Map the Indian chart of accounts to the parent's reporting lines once, not every period.
- Keep a standing schedule of reconciling adjustments between local and group figures.
- Agree intercompany balances with group companies before each reporting date.
- Align local close timetables with the parent's deadlines.
- Make sure the full-year group figures reconcile to the audited Indian statutory accounts.
Getting Help
Think Filing prepares statutory accounts and IFRS reporting packs for Indian subsidiaries of foreign groups, keeping both aligned and on the parent's timetable.