Major differences between AS 5 and Ind AS 8

Change in accounting policies:

AS 5 requires prospective application of change in accounting policy together with a disclosure of the impact of the same if any. However, change in depreciation method, though considered as change in accounting policy is given retrospective effect.

 Ind AS 8 requires retrospective application of changes in accounting policy by adjusting the opening equity and comparatives unless impracticable.

Errors :

Prior period errors are included in determination of profit or loss for the period in which the error is discovered and are separately disclosed in the statement of profit and loss in a manner that the impact on current profit or loss can be perceived.

Under Ind AS 8, prior period errors are corrected by adjusting the opening equity and comparatives unless impracticable.

New accounting pronouncements :

Under AS 5, there is no requirement to disclose about the new accounting pronouncements that have been issued but not yet effective at the end of the reporting period.

Under Ind AS, non –application of new accounting pronouncements that have been issued but not yet effective at the end of the reporting period is disclosed. Information related to possible impact of new pronouncements on the financial statements is also disclosed.