Infosys Technologies - Reconciliation of accounts as per Indian GAAP & US GAAP
Infosys Technologies Ltd has announced the following Reconciliation of accounts as per Indian GAAP and US GAAP (Rs in Millions):
------------------------------------------------------------------------------------------------------ Quarter ended Quarter ended June 30, 2008 June 30, 2007 ------------------------------------------------------------------------------------------------------ Consolidated Net Profit as per Indian GAAP 13020 10790 Stock compensation expenses (SFAS 123R) (20) (30) Amortization of Intangibles (80) (60) Fringe Benefit Tax (10) - ------------------------------------------------------------------------------------------------------- Consolidated Net Income as per US GAAP 12910 10700 -------------------------------------------------------------------------------------------------------
Reasons for differences in net income as per Indian GAAP and US GAAP
Stock compensation expenses (SFAS 123R)
Under US GAAP, the Company recorded stock compensation expense using the fair value recognition provisions of SFAS 123R.
Amortization of Intangibles
US GAAP requires the purchase price in business combination transactions to be allocated to identifiable assets and liabilities, including intangibles assets. Intangible assets are to be amortized over the estimated useful life.
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