The document discusses International Financial Reporting Standards (IFRS), which are a set of global accounting standards intended to make company financial statements consistent, transparent, and comparable worldwide. IFRS are issued by the International Accounting Standards Board and specify how companies must maintain records and report expenses, income, and financial position. Over 160 countries require public companies to use IFRS to increase transparency and efficiency in global financial markets, though the U.S. and China use their own standards. There are currently 16 IFRS standards addressing topics like financial instruments, revenue recognition, and leases.
2. International Financial Reporting
Standards (IFRS)
What Are International Financial Reporting Standards
(IFRS)?
International Financial Reporting Standards (IFRS) are a set of
accounting rules for the financial statements of public
companies that are intended to make them consistent,
transparent, and easily comparable around the world.
3. The IFRS are issued by the International Accounting
Standards Board IASB
International Accounting Standards Board
The International Accounting Standards Board (IASB)
is an independent, private-sector body that develops
and approves International Financial Reporting
Standards (IFRSs). ... The IASB was formed in 2001 to
replace the International Accounting Standards
Committee (IASC).
4. Understanding International Financial Reporting
Standards (IFRS)
IFRS specify in detail how companies must maintain
their records and report their expenses and income.
They were established to create a common
accounting language that could be understood
globally by investors, auditors, government regulators,
and other interested parties.
The standards are designed to bring consistency to
accounting language, practices, and statements, and
to help businesses and investors make educated
financial analyses and decisions.
5. They were developed by the International Accounting Standards Board,
which is part of the not-for-profit, London-based IFRS Foundation. The
Foundation says
it sets the standards to “bring transparency, accountability, and
efficiency to financial markets around the world.“
Standard IFRS Requirements
IFRS covers a wide range of accounting activities.
There are certain aspects of business practice for
which IFRS set mandatory rules.
6. 1.Statement of Financial Position: This is the balance sheet.
IFRS influences the ways in which the components of a
balance sheet are reported.
2.Statement of Comprehensive Income: This can take the
form of one statement or be separated into a profit and loss
statement and a statement of other income, including
property and equipment.
3.Statement of Changes in Equity: Also known as a statement
of retained earnings, this documents the company's change in
earnings or profit for the given financial period.
4.Statement of Cash Flows: This report summarizes the
company's financial transactions in the given period,
separating cash flow into operations, investing, and financing.
7. FAST FACT:
1.US they use GAAP {GENERALLY ACCEPTED
ACCOUNTING PRINCIPALS} not IFRS .
2.Chinese companies do not use IFRS or GAAP.
They use Chinese Accounting Standards for
Business Enterprises (ASBEs).
8. Who Uses IFRS?
IFRS are required to be used by public companies based
in more than 160 countries, including all of the nations
in the European Union as well as Canada, India, Russia,
South Korea, South Africa, and Chile.8
The U.S. and China each have their own systems.
History of IFRS
IFRS originated in the European Union with the intention of making business
affairs and accounts accessible across the continent. It was quickly adopted
as a common accounting language.
Although the U.S. and some other countries don't use IFRS, currently 166
jurisdictions do, making IFRS the most-used set of standards globally.
9. How many IFRS standards are there?
The following is the list of IFRS issued by the International Accounting
Standard Board (IASB) in 2019.
IFRS
1. FRS 1 First-time adoption of International Financial Reporting Standards
2. IFRS 2 Share-based payment
3. IFRS 3 Business combinations
4. IFRS 4 Insurance contracts
5. IFRS 5 Non-current assets held for sale and discontinued operations
6. IFRS 6 Exploration for and evaluation of mineral resources
7. IFRS 7 Financial instruments: disclosures
8. IFRS 8 Operating segments
10. 9. IFRS 9 Financial instruments
10. IFRS 10 Consolidated financial statements
11. IFRS 11 Joint arrangements
12. IFRS 12 Disclosure of interests in other entities
13. IFRS 13 Fair value measurement
14. IFRS 14 Regulatory deferral accounts
15. IFRS 15 Revenues from contracts with customers
16. IFRS 16 Leases
