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IFRS (International Financial Reporting Standards) : Compliance

IFRS are accounting standards developed by the IASB to provide a global framework for public company financial reporting. IFRS aims to standardize reporting globally to simplify procedures for multinational companies and provide consistent information to investors and auditors. Over 100 countries currently require or allow IFRS, with more expected to adopt them by 2015. Supporters believe the implementation costs of IFRS may be offset by potential improvements to credit ratings from compliant financial reporting. IFRS replaced older IAS standards.

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22 views2 pages

IFRS (International Financial Reporting Standards) : Compliance

IFRS are accounting standards developed by the IASB to provide a global framework for public company financial reporting. IFRS aims to standardize reporting globally to simplify procedures for multinational companies and provide consistent information to investors and auditors. Over 100 countries currently require or allow IFRS, with more expected to adopt them by 2015. Supporters believe the implementation costs of IFRS may be offset by potential improvements to credit ratings from compliant financial reporting. IFRS replaced older IAS standards.

Uploaded by

Sultan Ahmad
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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IFRS (International Financial Reporting

Standards) International Financial Reporting Standards (IFRS) is a set of accounting


standards developed by an independent, not-for-profit organization called the International Accounting
Standards Board (IASB).

The goal of IFRS is to provide a global framework for how public companies prepare and
disclose their financial statements. IFRS provides general guidance for the preparation of
financial statements, rather than setting rules for industry-specific reporting.

Having an international standard is especially important for large companies that have
subsidiaries in different countries. Adopting a single set of world-wide standards will simplify
accounting procedures by allowing a company to use one reporting language throughout. A
single standard will also provide investors and auditors with a cohesive view of finances.

Currently, over 100 countries permit or require IFRS for public companies, with more countries
expected to transition to IFRS by 2015. Proponents of IFRS as an international standard maintain
that the cost of implementing IFRS could be offset by the potential for compliance to improve
credit ratings.

IFRS is sometimes confused with IAS (International Accounting Standards), which are older
standards that IFRS has replaced

International Accounting Standards (IAS)


Standards for the preparation and presentation of financial statements created by the International
Accounting Standards Committee (IASC). They were first written in 1973, and stopped when the
International Accounting Standards Board (IASB) took over their creation in 2001.

GAAP
is a combination of authoritative standards (set by policy boards) and the commonly accepted ways of
recording and reporting accounting information. GAAP improves the clarity of the communication of
financial information.

Asset
an item of property owned by a person or company, regarded as having value and available to meet
debts, commitments, or legacies.

Liabilities

Liabilities are legally binding obligations that are payable to another person or entity.

Retained earnings are the profits that a company has earned to date, less any dividends or other
distributions paid to investors. This amount is adjusted whenever there is an entry to the accounting
records that impacts a revenue or expense account.

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