There are major differences between US GAAP and Indian GAAP in their underlying assumptions, format/presentation of financial statements, treatment of cash flows, depreciation, long term debts, consolidation of subsidiaries, investments, foreign currency transactions, research & development expenditures, revaluation reserves, extraordinary/prior period items, goodwill, capital expenses, preoperative expenses, and employee benefits. Some of the key differences include more conservative assumptions in Indian GAAP, flexibility in US GAAP financial statement presentation, less stringent cash flow reporting requirements in Indian GAAP, and differences in the treatment of depreciation methods, foreign currency translations, and research and development costs.