Professional Documents
Culture Documents
PRESENTED
BY:-
ABBAS
ANSARI
MORADABAD
abbasali4u4ever@gmail.com
Converging in to
international financial
reporting standards
Infosys technologies LTD- it was founded
on july 2,1981 in pune by NR Narayana
Murthy and 6 other people .the company
was incorporated as private company and
went public in 1993.in its recent annual
reports , infosys technologies limited also
provides its balance sheet and p/l a/c as
per the inter national financial reporting
standards
International financial
reporting standards
IFRS are standards ,interpretations and
framework adopted by the international
accounting standards board [IASB] which
was issued between 1973 and 2001 by
IASB
IFRS & Indian GAAP
•The IFRS or the International Finance Regulation Standards are
defined by the International Accounting Standards Board. The IFRS
is increasingly being adopted by companies across the globe for
preparing their financial statements. IFRS comprises of International
Financial Reporting Standard, International Accounting Standard,
and Interpretation originated by the International Financial Reporting
Interpretations Committee.
•Indian GAAP are the standards notified by the central govt. under the
companies (Accounting Standard)Rules,2006 (applicable to all
companies) vide notification G.S.R.739(E) dated 7 Dec. 2006 and to
the relevant requirements of the companies Act,1956.
•
Differences between IFRS &Indian
GAAP
IFRS Indian GAAP
1. IAS 1 (2007)-Presentation of 1.AS 1-Disclosure of accounting
Financial
2.Financialstatements
Statements under policies/schedule
2. The componentsVIoftofinancial
IFRS comprises of companies act,1956.
statement are-
A statement of financial position Balance sheet
FOREIGN
REVENUES
COST
GROSS
SELLING
ADMINS.
GAIN ON
OF SALE 31.03.05
AMORTAIZATI
TOTAL
OPERATING
PROFIT
AND 1592
908
684
104
2128
234
450
11
(2) 31.03.06
2152
1248
904
137
173
310
-594
(18) Absolute
560
340
220
33
245
76
144
(11)
(16) Percentage
35.17
37.44
32.16
31.73
35.15
32.47
32
(100)
(800)
REVENUES
MARKETING
EXPENCES
ON
OPERATING
INCOME
OF
CURRENCY
LONG
OF increase/decrea change
INTANGIBLE
EXPENCES
TERM
EXCHANGE se
ASSESTS
INVESTMENT
OTHER INCOME 26 49 23 88.46
NET
INCOME 485 625 140 28.86
BEFORE
PROVISION FOR 72 70 (2) (2.77)
INCOME
INCOME TAX
TAX
NET INCOME 413 555 142 34.38
NET INCOME - 5 5 100
ATTRIBUTE TO
MINORITY
NET INCOME 413 550 137 33.17
INTEREST
ATTRIBUTE TO
SHAREHOLDERS
OF PARENT
COMPANY
Interpretations as per IFRS
vRevenue increased in 2006 in comparison
to 2005 by 35% which is good for
company.
vGross profit is also increased in 2006 by 32
%
Which is good for company.
Comparative analysis of
change change
the IFRS
REVENUES
SOFTWARE 2466
based
3427 961 38.96
FINANCIAL
SOFTWARE 1032 1324 B/S
292 of 28.29
SERVICE
Infosys
MANAGEME
SEGMENT
NT
in
million dollars
SOFTWARE
SEGMENT 1320 1568 248 18.78
TELECOM
SEGMENT
SOFTWARE 698 968 270 38.68
RETAIL
SEGMENT
SOFTWARE 1614 2236 622 38.53
OTHERS
TOTAL 7130 9521 2391 33.53
REVENUE
EXPENSES
SOFTWARE 3765 5066 1301 34
DEV.BUSS.P
ROCESS
MANAGEME
GROSS 3365 4455 139 39.4%
PROFIT
OPERATING
EXPENCES
SELLING 461 600 139 30.15
AND
MARKETING
GEN.AND
EXPENCES 569 764 195 34.27
ADMINISTR
ATION EXP
DEPRICIATI 287 437 150 52.26
ON
TOTAL 1317 1801 484 36.75
OPERATING
EXPENCES
OPERATING 2048 2654 606 29.58
PROFIT
BEFORE
OTHER TAX 124 139 15 12.09
INCOME
(NET)
INCOME 2172 2792 620 28.54
BEFORE TAX
INCOME 326 313 (13) (0.03)
Currency rate
A/c to Indian GAAP
selling expenses= Rs 461 crores
A/c to IFRS
1$=4610000000/104000000
=Rs 44.32
Thus currency rate is 1 USD = Rs 44.32
INTERPETATION
The cost of production and gross profit is
almost same in both the years instead of
increase in sales that means the co. is
incurring some per unit cost during both
the years.
In 2006 the co. had not charged
depreciation to P/L which may create
problem in future.
Income before interest & tax in both the
years is almost same.
The net profit after tax & interest is almost
same that means co. is showing constant
growth.
NAME OF COMPANIES USING
IFRS
TATA
WIPRO
NIIT
MAHINDRA & MAHINDRA
BOMBAY DYING
DR. REDDY LABORATORIES
REASON FOR ADAPTING IFRS