International Financial Reporting Standards (IFRS) are a set of global accounting standards used to prepare public company financial statements. IFRS provide a common global framework and seek to replace national accounting standards. Adopting IFRS allows companies to present financial statements using the same standards as competitors, making comparisons easier for investors globally. However, some challenges remain as implementation may differ across countries due to varying laws and cultures.

1. IFRS
• International Financial Reporting Standards - Meaning
• Framework for IFRS
• Importance
• Advantages a nd disadvantages
• Requirements ofthe IFRS
• Summ ary of IFRS

2. International Financial Reporting Standards (IFRS}
• IFRS are a set of accounting standards developed by the IASB that is becoming the global standard for
the preparation of public company financial statements.
• IFRS is sometimes confused w i t h International Ac counting Standards (IAS), which are older standards
that IFRS has now replaced. The goal of IFRS is to provide a global framework for how public companies
prepare and disclose their financial statements.
• They are progressively replacing the many different national accounting standards. They are the rules
to be followed by accountants to maintain books of accounts which are comparable, understandable,
reliable and relevant as per the users internal or external.

3. IFRS
• IFRS Foundation - Governed by a board of 22 trustees. IFRS Foundation is the new
na me of International Accounting Standards Committee (IASC), approved in
J anua ry 201
0.
• IFRS Advisory Council - The IFRS A dvisory Cou ncil is the form a l adviso ry body to
the IASBa ndtheTrusteesofthe IFRS Foundation
• IFRS Interpretations Committee interpretivebodyoftheIFRS
Foundation.

4. Importance of IFRS
• A bus iness can present its financial statements on the same basis as its foreign competitors,
making comparisons easier.
• Companies with subs idiaries in count ries that require or permit IFRS may be able to use one
accounting language company-wide.
• Companies may need to convert to IFRS if they are a subsidiary of a foreign company that must
use IFRS,or ifthey have a foreign investor that must use IFRS.
• Capital market regulators must be aware of only one set of accounting standards and the
companies will experience efficiency in raising capital and reduced information processing cost.
• The companies will no longer required to prepare its financial statement under different GAAP and
make the task of listing shares inforeign exchange easier.

5. Advantages of the IFRS
• having one accounting system will make life a little less complicated for both the
companies and the investors.
• knowledge of IFRS is now essential for internationally active, growing businesses.
• one global set of high-qua lity accounting standards and that IFRS is currently best
positioned to fulfill that need.
• one reporting standard will make it more efficient for investors to research and
compare financial statements globally and more effectively.
• higher market liquidity, more investment flows through foreign mutual funds, and
more favourable terms in private debt contracting, greater analyst coverage, and
lower stock return synchronicity.

6. Disa dvantages of the IFRS
• differences in financial reporting,and financial statements would not be "identical" because of the
differences in national laws, economic conditions,and objectives.
• environmental factors such as culture, language, and legal system affect howIFRSisapplied.
• The differing backgrounds of the people in numerous countries applying IFRS means that
interpretative differences will arise because of different historical practices.
• If some countries interpret the IFRS differently than other countries, the financial statements between
those countrieswould not becomparable.
• audit fees of public accounting firms increase after the transition to IFRS.
• costsofapplicationbycompanies,suchaschangingtheinternalsystems tomakeitcompatiblewiththenew
reportingstandards,trainingcostsand etc.,are increased.
• Substantial amount of time to convert to IFRS completely, depending on the size of the company.

7. Requirements of the IFRS
• StatementofFinancialPosition
• Statement of Profit or Loss and Other Comprehensive
Income
• Statement of Changes in Equity (SOCE)
• Cash Flow Statement or Statement of Cash Flows for the reporting period.
• Notes comprising a summary of significant accounting policies and other
explanatory information.
• Statement of financial position

8. List of the International Financial
Reporting Standards (IFRSs)
IFRS 1First-time Adoption of Internationa l Financial Reporting Standards.
IFRS 2 Share-based Payment.
IFRS 3 Business Combinations
IFRS 4 Insurance Contracts
IFRS5 Non-currentAssets Heldfor Sale and DiscontinuedOperations
IFRS6 Exploration forand Evaluation of Mineral Resources
IFRS 7 Financial Instruments: Disclosures
IFRS 8 Operating Segments
IFRS 9 Financial Instruments
IFRS 1
0Consolidated FinancialStatements
IFRS1
1JointArrangements
IFRS 1
2 Disclosure of Interest in Other Entities
IFRS 1
3 Fair Value Measurement
IFRS1
4Regulatory DeferralAccounts
IFRS1
5 Revenue from Contracts with Customers