There are certain departures in accounting aspects dealing with amalgamations or mergers as per IFRS 3 in comparison to IND AS 103. Enlist such variations briefly.

The principles of IND-AS 103 Business Combination and IFRS -3 are same to a very great extent. There are only few carve out in IND-AS 103 when compared to IFRS 3. They are as follow: IFRS-3 excludes from its scope business combinations of entities under common control. IND- AS 103 gives the guidance in this regard. IFRS-3 requires bargain purchase gain arising on business combination to be recognised in profit or loss account. IND-AS 103 requires that the bargain purchase gain to be recognised in other comprehensive income and accumulated in equity as capital reserve, unless there is no clear evidence for the underlying reason for classification of the business combination as a bargain purchase, in which case, it shall be recognised directly in equity as capital reserve. The main reason for this carve out is, the recognition of such gains in profit or loss would result into recognition of unrealised gains as the value of net assets is determined on the basis of fair value of net assets acquired.