DIFFERENCE BETWEEN INDIAN AND ETHIOPAN ACCOUNTING SYSTEM

Question

Accepted Answer

Indian and Ethiopian accounting systems differ in their approach to financial reporting and regulatory compliance.

Indian accounting system follows the Generally Accepted Accounting Principles (GAAP) while Ethiopian accounting system follows the International Financial Reporting Standards (IFRS).
Indian accounting system is more rule-based while Ethiopian accounting system is more principle-based.
Indian accounting system is heavily influenced by tax laws and regulations while Ethiopian accounting system is more focused on transparency and accountability.
Indian accounting system places more emphasis on historical cost accounting while Ethiopian accounting system allows for fair value accounting.
Indian accounting system requires companies to prepare financial statements in both English and a local language while Ethiopian accounting system only requires financial statements in English.