A'Rafeq, FCA, CISA, CQA, CFE

1
Seminar on US GAAP, IFRS and Indian GAAP - A
Comparison

• A.Rafeq, FCA, CISA, CQA, CFE
• President, Strategic Development and Alliances
• Tally Solutions, Bangalore
• www.tallysolutions.com
• Tuesday, 20th December 200

2
Who should know about GAAPs?

• CEO
• CFO
• CIO
• CTO
• Owner
• Investor
• Audit Professionals
• Finance Account Professionals
• Regulators.

GAAP Generally Accepted Accounting Principles
3
4 SQUARES

• The fig shows 4 squares-A,B,CD.
• 1/4th of squares A,BC is shaded.

A
B
1. Divide Unshaded portion of A into TWO
equal identical parts.
2. Divide Unshaded portion of B into THREE
equal identical parts.
3. Divide Unshaded portion of C into FOUR
equal identical parts.
Clues The solution is not in the form of
triangles. The solution lies in the problem
itself.
C
D
4. Divide D into SEVEN equal identical parts.
Clues The solution is not in the form of
triangles.
This was done in world record time of 7 sec.
This is a lesson on MINDSET
4
Why should you know about GAAPs

• Operate in a global economy
• Presentation of your financial health and
  financial performance
• Ensure regulatory compliance
• Operate in a competitive economy
• Get foreign investments
• Compare with the rest of the world

5
Business changing paradigm

• Impact of globalisation remain competitive
• Real performance real results
• Businesses are going global, on-line
• Business anytime, anywhere, anyhow
• Free flow of Investments
• Indian MNCs
• Regulatory requirements SOX, Clause 49
• Traditional business model to IT enabled business
  model
• Standards move towards harmonisation and
  congruence
• Impact of automation use IT for competitive
  advantage

6
Linking Financial performance to Corporate
Governance
Value Delivery
Stakeholder Value Drivers
Risk Management
Strategic Alignment
Performance Measurement
GAAPs provide the rules for presentation and
treatment of financial transactions and impact
how financial health/performance is presented
and perceived
7
Enterprise Governance

• The system by which companies are directed and
  controlled
• Includes processes, structures and mechanisms
  used to achieve accountability to shareholders
• Effective corporate governance should ensure
  controllable risks (eg mission, strategy,
  operating procedures) are properly managed, and
  uncontrollable risks (example economic
  conditions, market fluctuations, competitive
  initiatives) are knowingly accepted

8
GAAPs and internal controls

• Authority
• Accountability
• Stewardship
• Fiduciary Responsibility
• Leadership
• Direction
• Control
• Compliance

9

• GAAPs facilitate presentation, treatment and
  comparison of all your financial transactions

10
If you don't know where you are going, No road
can take you there!
Wish you Great Learning Experience
Thank you
rafeq.a_at_tallysolutions.com