2. IFRS: INTERNATIONAL
FINANCIAL REPORTING
STANDARDS
International financial reporting standards (IFRS) are set of
accounting standards that govern how particular types of
transactions and events should be reported in financial
statements. They were developed and are maintained by the
international accounting standard board (IASB).
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3. HISTORY OF IFRS
IFRS originated in European union with the intention of
making business affairs and accounts accessiable across the
continent. It was quickly adopted as a common accounting
language.
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4. WHO USES IFRS
IFRS is required to be used by public companies based in
167 jurisdictions, including all of the nation in the european
union as well as Canada, india, russia, south korea, south
africa, and chile. The U.S. and china each have their own
systems.
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5. WHY IS IFRS IMPORTANT?
IFRS
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6. IFRS COMPRISE OF:
9-IFRS- standards issued after 2001 by IASB
29-international accounting standards (IAS)-
standard issued before 2001 by IASC which are
still valid.
16-interpretations issued by international
financial reporting interpretation committee (IFRIC)
after 2001.
11-interpretations issued by standing
interpretations committee (SCI) before 2001.
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7. COMPOSITIONS OF IFRS
• IAS: international accounting standards
• IFRS: international financial reporting standards.
• SIC: interpretations by standing interpretation
committee on IAS.
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• IFRIC: interpretations by international financial
reporting interpretations committee on IFRS
8. 20XX
IFRS is issued by international accounting
standards board.
currently, over 100 countries require compliance
of IFRS while preparing financial standards.
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9. WHY INDIA NEEDS IFRS?
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It is used in
more than 130
countries.
one language
Easy access to
global capital
market
Low cost of
capital
Attract foreign
investment More visible
10. ADVANTAGE
increased comparability of financial information.
the financial reporting process would become more
transparent.
the standardization of accounting methodology provider
creditors & investors with the ability to analyze business around
the world using the same financial method.
permit international capital to flow more freely.
provide better understanding to financial statement.
assess the investment opportunities.
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11. LIST OF IFRS
The following international accounting standards (IAS) / international financial
reporting standards (IFRS) issued by IABS which are in force:
IAS-1 presentation of financial statement
IAS-2 inventories
IAS-7 cash flow statement
IAS-8 accounting policies, changes in accounting estimates & errors.
IAS-10 events after the balance sheet date.
IAS-11 construction contracts
IAS-12 income tax
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12. CONT:
IAS-16 property
IAS-17 leases
IAS-18 revenue
IAS-19 employee benefit
IAS-20 accounting for government grants and disclosures of
government assistants
IAS-21 the effects of change in foreign trade rates
IAS-23 borrowings costs
IAS-24 related party disclosures
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13. CONT:
IAS-27 consolidated and seprated financial statement
IAS-28 investment in associate
IAS-29 financial reporting in hyperinflationary economics
IAS-31 interest in joint venture
IAS-32 financial investment: presentation
IAS- 33 earning per share
IAS-34 interim financial reporting
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14. CONT......
IFRS-1 first time adoption of international financial reporting
standards
IFRS-2 share balance payment
IFRS-3 business combination
IFRS-4 insurance contracts
IFRS-5 non current assets held for sale & discounted
operations
IFRS-6 exploration for & evaluation of mineral resources
IFRS-7 financial instrument : disclosure
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15. OBJECTIVES
Establish a universal
language for companies to
prepare accounting
statements.
Establish accounting rules
to make it easier for
stakeholders to interpret
financial statements.
Make the accounting
statements credible and
transprarent.
Assist companies
inappropriately
categorizing and reporting
financial data.
Making international
comparisons &
analyses an easy task.
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