Accounting for Managers International Financial Reporting Standards(IFRS) – Meaning or Definitions Frameworks for IFRS Importance Advantages & Disadvantages Requirements of the IFRS

1. NAME- ABHIRAJ SINGH RAJPUT
MBA (FT) (CORE) I-SEM
SUBJECT – ACCOUNTING FOR MANAGERS
IPS ACADEMY, INDORE (2021-23)

2. INTERNATIONALFINANCIAL
REPORTINGSTANDARDS
(IFRS)

3. MODULE
 International Financial Reporting Standards(IFRS) – Meaning or Definitions
 Frameworks for IFRS
 Importance
 Advantages & Disadvantages
 Requirements of the IFRS
 Summary of IFRS
 EXTRAS.

4. International Financial Reporting
Standards (IFRS)
IFRS are a set of accounting standards developed by the International Accounting
Standards Board (IASB) that is becoming the global standard for the preparation of public
company financial statements.
IFRS is sometimes confused with International Accounting 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.
.

5. IASB
• Established in 2001 as a
part of IASC foundation
(now known as IFRS
foundation)
• Comprises of 16 full time
members
• Responsibilities includes
approval of IFRS
conceptual framework for
financial reporting
Exposure drafts,
discussion documents and
other related documents
IFRS Foundation
• Earlier known as
international Accounting
Standards Committee
(IASC) Foundation
• Governed by 22 Trustees
• Responsibilities include (i)
Appointing the members
of the IASB and
associated councils and
committees and
Interpretations
Committee
• Earlier known as IFRIC
• Consists of 14 voting
members and a non-
voting member
• Responsibilities include
Preparing interpretations
of IFRS for approval by
the IASB and providing
timely guidance on
financial reporting issues.
FRS ADVISORY COUNCIL

6. KEY
Appoints
Reports to
Advises
KEY
Approve and oversee trustees.
22 Trustees
Appoint, oversee, raise funds.
Maximum 16 members
Set technical agenda; approve
Standards, exposure drafts, and
Interpretation.
14 members
Issue interpretations on the
Application of IFRS and develop
other minor amendments.
Approximately 40 members
Advise on agenda and priorities. Provide standard setter input into
technical projects.
For major agenda projects.
Monitoring Board
IFRS Foundation
IFRS Interpretations Committee
IASB
IFRS Advisory Council Accounting Standards Advisory
Forum(ASAF)
Working groups

7. IFRS
• IFRS Foundation - Governed by a board of 22
trustees. IFRS Foundation is the new name of
International Accounting Standards
Committee (IASC), approved in January 2010.
• IFRS Advisory Council - The IFRS Advisory
Council is the formal advisory body to the
IASB and the Trustees of the IFRS Foundation
• IFRS Interpretations Committee
interpretive body of the IFRS Foundation.
IFRS
ACCOUNTING

8. IMPORTANCE OF IFRS
A business can present its financial statements on the same basis as its foreign competitors,
making comparisons easier. Companies with subsidiaries in countries 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 if they have a foreign investor that must use IFRS.
• Capital market regulators must be aware of only one set ofaccounting 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 in foreign exchange easier.

9. 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-quality 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.

10.  Statement of Financial Position
 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
REQUIREMENTS OF THE IFRS

11. DISADVANTAGES 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 how IFRS is applied.
 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
countries would not be comparable.
 Audit fees of public accounting firms increase after the transition to IFRS.
 Costs of application by companies, such as changing the internal systems to make it compatible with the new
reporting standards, training costs and etc., are increased.
 Substantial amount of time to convert to IFRS completely, depending on the size of the company.

12. # COUNTRIES USING IFRS
 South Korea
 Hong Kong
 Malaysia
 GCC Countries
 Philippines
 Singapore
 European Union
 India
 Australia
 Pakistan
 Russia
 South Africa
 Turkey

13. COMPANIES USING IFRS
◦ IFRS in use virtually by all industries around the world. Some
of them are :

14. Benefits of doing IFRS from IACT Global
 Training for IFRS
 Books & study Materials for IFRS
 Practice & Revision kit (BPP Learning Media, UK)
 Home Study Text (BPP Learning Media, UK)
As per our Research 95% Candidates take the benefit of Salary hike,
Promotions by doing certification from IACT Global.

15. Eligibility Criteria for IFRS
Certification
 Graduation in Commerce with 3 years work Experience
 Post Graduation with 2 years Experience
 For Certified professional like CA, ICWA, CS etc. no work
Experience is required

16. THANKYOU