On paper, accounting standards are meant to create uniformity. Same rules, same framework, same principles. But step into practice and the picture changes.
Take the same Ind AS and apply it across sectors, you don’t get consistency. You get completely different outcomes.
Think about it:
Ind AS 115 (Revenue)[Text Wrapping Break] A real estate company recognises revenue over time[Text Wrapping Break] A SaaS company defers it over subscription periods[Text Wrapping Break] A manufacturer books it at a point in time
Same standard but three very different profit stories.
Ind AS 116 (Leases)[Text Wrapping Break] Retail: massive balance sheet expansion[Text Wrapping Break] IT: minimal impact[Text Wrapping Break] Airlines: completely reshaped financials
Same rule but different realities.
Ind AS 109 (Financial Instruments)[Text Wrapping Break] Banks: ECL drives profitability[Text Wrapping Break] Corporates: mostly limited impact[Text Wrapping Break] NBFCs: somewhere in between
So what’s really happening? Ind AS doesn’t create uniform numbers. It creates a uniform way of thinking.
And that thinking interacts with business models, industry practices, risk profiles and transaction structures.
Which is why two companies can both be fully compliant, audited, following the same standards and still look completely different on paper.
Comparability doesn’t come from standards alone. It comes from understanding how those standards behave in each sector.
Because in financial reporting, it’s not just about what the standard says. It’s about how the business makes it come alive.
