Financial Reporting · Consolidated Financial Statements

Ind AS 110 Differences from IFRS 10 for CA Final

Updated 5 October 2026 · Fact-checked

Ind AS 110 follows IFRS 10 on the control model, the investment entity exception and the consolidation procedures. Appendix 1 lists the departures. Two you can state safely: the para 4(a) exemption needs the parent's higher-level consolidated statements to comply with Ind AS, and Ind AS terminology is used. Check the current Appendix 1 for any others.

Understand Ind AS 110 Differences from IFRS 10

Ind AS 110 Consolidated Financial Statements is based on IFRS 10. The core control model is the same. An investor controls an investee when it has power over the investee, exposure or rights to variable returns, and the ability to use power to affect those returns.

Appendix 1 of the Standard, titled 'Comparison with IFRS 10', lists where the Indian text departs from the IASB text. Learn each listed item with its paragraph number and its effect. Do not treat them as drafting edits.

First, know what is common ground. Investment entity exception. Ind AS 110 keeps the exception in paras 27 to 33 and Appendix B, as IFRS 10 does. A parent that is an investment entity does not consolidate its subsidiaries. It measures them at fair value through profit or loss (FVTPL) under Ind AS 109. The one exception is a subsidiary that provides investment-related services or activities that relate to the parent's investment activities. That subsidiary is still consolidated. Before you apply the exception, the parent must meet the definition of an investment entity: it obtains funds from investors to provide them with investment management services, it commits to investors that its purpose is returns from capital appreciation, investment income or both, and it measures and evaluates the performance of substantially all its investments on a fair value basis. It should also consider the typical characteristics: more than one investment, more than one investor, investors that are not related parties, and ownership interests in the form of equity or similar. Do not write this as a difference between the two Standards.

The departures you can state:

Parent's exemption from preparing consolidated statements (para 4(a)). Both Standards let a parent skip consolidated statements only if all the conditions are met: (i) the parent is wholly owned, or partially owned with all its other owners, including those not otherwise entitled to vote, informed and not objecting; (ii) its debt or equity instruments are not traded in a public market; (iii) it has not filed, and is not in the process of filing, its financial statements with a securities commission or other regulator to issue any class of instruments in a public market; and (iv) its ultimate or any intermediate parent produces consolidated financial statements available for public use that comply with Ind AS. The Ind AS point to state is in (iv): the higher-level statements must comply with Ind AS, not IFRS. Read para 4(a) and Appendix 1 side by side before you write any other wording difference.
Loss of control. Do not list 'different wording on loss of control' as an Appendix 1 departure unless you can point to the Appendix 1 item and its paragraph in your study material. Learn the loss of control accounting in paras 25 and B97 to B99 as ordinary Ind AS 110 content: derecognise the subsidiary's assets, liabilities and non-controlling interest, recognise any retained investment at fair value, and recognise the gain or loss in profit or loss.
Terminology. Appendix 1 also notes that Ind AS uses 'balance sheet' and 'statement of profit and loss' instead of the IFRS titles, and refers to Ind AS instead of IFRS (for example Ind AS 109 for IFRS 9). This is a listed difference but it carries low weight. Mention it briefly at the end of an answer. Do not lead with it.

The exact list in Appendix 1 changes when the Standard is amended. Read the current Appendix 1 in your ICAI study material and memorise each item with its paragraph number.

Exam questions are short comparison or case questions. They check whether you know the control model is common and can state the specific departures and their effect.

Key rules to remember

Control test (same in Ind AS 110 and IFRS 10): Control = Power over investee + Exposure/rights to variable returns + Ability to use power to affect returns; All three elements must be present. The Ind AS text does not change this test.
Investment entity position (same in both Standards): Qualifying investment entity parent: subsidiaries at FVTPL under Ind AS 109 | Subsidiary providing investment-related services: consolidated; The entity must first meet the investment entity definition and consider the typical characteristics. This is common ground, not an Appendix 1 departure.
Answer rule for comparison questions: Common principle → Difference → Paragraph → Effect; Write each difference in this order to earn marks.

How to solve Ind AS 110 Differences from IFRS 10 questions

Use this method for any question that asks you to compare Ind AS 110 with IFRS 10 or to apply a stated difference to a case.

1Read the question and decide if it asks for a list of differences, an explanation of one difference, or an application to a case.
2State the common ground first: the control model, the investment entity exception and the basic consolidation procedures are the same in both Standards.
3List each departure from Appendix 1 one by one. Give the IFRS 10 position and the Ind AS 110 position side by side.
4If the facts involve a fund-type parent, treat the investment entity exception as common ground. Test the definition and typical characteristics. If the parent qualifies, measure its subsidiaries at FVTPL under Ind AS 109, except subsidiaries that provide investment-related services, which are consolidated.
5For the parent's exemption, name para 4(a) and state the conditions as worded in Ind AS 110.
6For a case, identify which provision is relevant, apply it to the facts, and reach a conclusion on whether to consolidate and how to report.
7Close with one line on the effect on the consolidated statements.

Quickest way: Common ground then departures

When to use it: Use when you have little time and the question simply asks for differences between Ind AS 110 and IFRS 10.

Write the line: control model, investment entity exception and basic procedures are the same.
Write departure 1: under para 4(a), the ultimate or intermediate parent's public consolidated statements must comply with Ind AS.
Write departure 2 in one line: Ind AS terminology (balance sheet, statement of profit and loss, Ind AS references).
Add any other item from the current Appendix 1 that you can cite with its paragraph. Do not add loss of control as a departure unless your study material lists it.
Finish with a one-line effect on consolidated statements.

Common mistakes in Ind AS 110 Differences from IFRS 10

Claiming that Ind AS 110 uses a different control test from IFRS 10.
Students assume that because Appendix 1 lists differences, the core principle differs.
Fix: State that the three-element control test is common. The departures are in items such as the Ind AS reference in the para 4(a) exemption and terminology.
Saying Ind AS 110 has no investment entity exception, or that an Ind AS fund-type parent must consolidate all its subsidiaries.
Students think the Indian text removed the exception, or they list it as a difference because it is a well-known IFRS 10 topic.
Fix: Ind AS 110 keeps paras 27 to 33. A parent that meets the investment entity definition measures subsidiaries at FVTPL under Ind AS 109, except subsidiaries that provide investment-related services. It is not an Appendix 1 departure.
Writing differences from memory that belong to other Standards.
Students mix up Ind AS 110 with carve-outs in other Standards such as Ind AS 103, Ind AS 28 or Ind AS 115.
Fix: Keep each Standard's differences separate. Only write items that you can tie to Appendix 1 of Ind AS 110.
Using IFRS or old AS terms in the answer.
Students read international material and old AS 21 notes.
Fix: Use Ind AS terms and numbers: balance sheet, statement of profit and loss, Ind AS 109, Ind AS 103. Use AS 21 only if the question asks for a comparison with it.
Memorising an outdated list of differences.
Appendix 1 is revised when the Standard is amended and older notes are still in circulation.
Fix: Use the study material for your exam attempt and compare it with the latest notified text before the exam.
Giving differences without saying their effect.
Students write a bare list because it is faster.
Fix: For each item add one line on effect, for example which entities are consolidated or how the transaction is reported.

Worked examples

Example 1

Case: Alpha Ltd, an Ind AS company, holds 70% of the voting rights of Beta Ltd and directs its relevant activities. A director asks whether the test for control under Ind AS 110 is stricter than under IFRS 10 because the group reports in India. Advise.

Show the solution

Identify the issue: whether the control concept differs between the two Standards.
State the rule: both require power over the investee, exposure or rights to variable returns, and the ability to use power to affect returns.
Apply to facts: Alpha holds the majority of voting rights and directs relevant activities, so it has power. As parent it is exposed to variable returns and can use its power to affect them.
Conclude on the comparison: the control test is common. Appendix 1 departures concern other matters, such as the Ind AS reference in the para 4(a) exemption and terminology.

Answer: No. The control test is the same under Ind AS 110 and IFRS 10. Alpha controls Beta and must consolidate it. The Appendix 1 departures do not make the control test stricter.

Example 2

Case: Gamma Ltd, an Ind AS company, obtains funds from several unrelated investors and provides them with investment management services. It commits to them that its purpose is capital appreciation and investment income, and it measures and evaluates substantially all its investments on a fair value basis. It holds several investments in the form of equity. It controls Delta Ltd, an investee held for returns, and Epsilon Ltd, a wholly owned subsidiary that provides investment advisory services to Gamma. Advise how Gamma reports Delta and Epsilon under Ind AS 110.

Show the solution

Identify the issue: whether Gamma can use the investment entity exception, and which subsidiaries it covers.
State the rule: Ind AS 110 (paras 27 to 33 and Appendix B) retains the exception. A parent that meets the investment entity definition measures its subsidiaries at FVTPL under Ind AS 109. A subsidiary that provides investment-related services relating to the parent's investment activities is still consolidated.
Test the definition: Gamma obtains funds from investors for investment management services, commits to returns from capital appreciation and investment income, and uses fair value to evaluate substantially all its investments. The definition is met.
Check the typical characteristics: Gamma has more than one investment, more than one investor, unrelated investors and equity interests. These support the conclusion.
Apply to Delta: Delta is an investee held for returns, so Gamma does not consolidate it and measures it at FVTPL under Ind AS 109.
Apply to Epsilon: Epsilon provides investment-related services to Gamma, so Gamma consolidates it.

Answer: Gamma qualifies as an investment entity. It measures Delta at FVTPL under Ind AS 109 and does not consolidate it. It consolidates Epsilon because Epsilon provides investment-related services. This is common to Ind AS 110 and IFRS 10, so it is not an Appendix 1 departure.

Exam tips

Open every answer with the common ground. It shows you understand that the two Standards share the control model.
Write Ind AS terms and Ind AS numbers. Use IFRS names only when the question asks you to compare.
In a case-scenario MCQ, if the facts test control, answer from the control test. If the facts describe a fund-type parent, test the investment entity definition first. If a parent wants to skip consolidation, apply the para 4(a) conditions.
Before the exam, reread the current Appendix 1 of Ind AS 110 once and memorise each listed item with its paragraph number.
Do not list the investment entity exception as a difference. Mention terminology differences in one line at the end of an answer, because they are listed but carry low weight.
Match the length of your answer to the marks. Give a tight list of differences, each with its effect.

Practice questions from Consolidated Financial Statements

Ind AS 110 Differences from IFRS 10: frequently asked questions

Is Ind AS 110 the same as IFRS 10?

The control model, the investment entity exception and the basic consolidation procedures are the same. But Appendix 1 lists departures, such as the Ind AS reference in the para 4(a) exemption and Ind AS terminology.

Where do I find the list of differences?

Appendix 1 of Ind AS 110, titled 'Comparison with IFRS 10', has the list. Use the version in your ICAI study material for your attempt and check it against the latest notified Standard.

Do the differences change how I consolidate a subsidiary?

The control test and the basic consolidation steps are the same. But some departures can change whether you prepare consolidated statements at all, for example the para 4(a) conditions. Separately, under both Standards a qualifying investment entity parent measures its subsidiaries at FVTPL instead of consolidating them, except subsidiaries that provide investment-related services.

Should I learn differences for every Ind AS in the same way?

Yes, use the same method. Each Standard has a comparison appendix. Learn the common principle, then the listed departures with their effects, and keep the Standards separate so that you do not mix up carve-outs.