A US parent with subsidiaries in India and Singapore reports under three frameworks at once: US GAAP for the group, Ind AS and SFRS(I) for the local statutory accounts. Most groups handle this with a second set of books, or with a conversion workbook that only one person understands.
Where the differences actually sit
The frameworks agree on most transactions. The differences cluster in a few places: leases (IFRS 16, Ind AS 116 and SFRS(I) 16 put almost every lease on the balance sheet as a finance-style lease, while ASC 842 keeps an operating lease model), development costs, impairment, financial instruments, and presentation. That makes the conversion a short list of adjustments, not a second ledger.
An adjustment layer, not a second ledger
- Entity level: each subsidiary keeps its books and statutory accounts in its local framework.
- Adjustment layer: GAAP adjustments are posted separately, by entity and period, each with its basis and approval.
- Group level: the consolidation runs on local figures plus adjustments, under the parent's framework.
Because the adjustments never touch the local ledger, the statutory accounts and the group numbers both stay true, and the bridge between them is a report rather than a reconciliation exercise.
What auditors see
Group auditors get the bridge from local to group framework for each entity. Local auditors see untouched statutory books. Both can trace every adjustment to its approval.