What is an international accounting standard?
International Accounting Standards (IAS) are older accounting standards issued by the
International Accounting Standards Board (IASB), an independent international
standard-setting body based in London. The IAS were replaced in 2001 by International
Financial Reporting Standards (IFRS).
What is the role of the International Accounting Standards Board IASB?
International Accounting Standards Board (IASB) The IASB is the independent
standard-setting body of the IFRS Foundation responsible for the development and publication
of IFRSs and for approving Interpretations of IFRSs as developed by the IFRS Interpretations
Committee.
What is the purpose of international accounting standards?
The Purpose of International Standards in Accounting
The purpose of these standards is to ensure that the financial centres of the world, which have
become more interconnected than ever, can use a global financial reporting framework that
ensures effective regulation of financial markets.
What is the difference between IASB and IFRS?
Basically, when contradictory standards are issued, older ones are usually disregarded.
Summary: IAS stands for International Accounting Standards, while IFRS refers to
International Financial Reporting Standards. ... IAS standards were issued by the IASC, while
the IFRS are issued by the IASB, which succeeded the IASC.
What are the advantages of IFRS?
Investors and investment institutions
With IFRS in place, investors get greater financial and operational transparency so they can
more accurately compare the health and performance of one company with that of others, and, as
a result, make better fact-based investment decisions.
What are the main objectives of IFRS?
Its principal objectives are:
● to develop, in the public interest, a single set of high quality, understandable, enforceable
and globally accepted international financial reporting standards (IFRS Standards) based
upon clearly articulated principles. ...
● to promote the use and rigorous application of those standards
What is IAS accounting?
International Accounting Standards (IAS) are older accounting standards issued by the
International Accounting Standards Board (IASB), an independent international standard-setting
body based in London. The IAS were replaced in 2001 by International Financial Reporting
Standards (IFRS).
Listing of IFRS & IAS (For Knowledge Perspective)
IFRS 1 First-time Adoption of International Financial Reporting Standards
IFRS 2 Share-based Payment
IFRS 3 Business Combinations
IFRS 4 Insurance Contracts
IFRS 5 Non-current Assets Held for Sale and Discontinued Operations
IFRS 6 Exploration for and Evaluation of Mineral Resources
IFRS 7 Financial Instruments: Disclosures
IFRS 8 Operating Segments
IFRS 9 Financial Instruments
IFRS 10 Consolidated Financial Statements
IFRS 11 Joint Arrangements
IFRS 12 Disclosure of Interests in Other Entities
IFRS 13 Fair Value Measurement
IFRS 14 Regulatory Deferral Accounts
IFRS 15 Revenue from Contracts with Customers
IFRS 16 Leases
IFRS 17 Insurance Contracts
IAS 1 Presentation of Financial Statements
IAS 2 Inventories
IAS 7 Statement of Cash Flows
IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors
IAS 10 Events after the Reporting Period
IAS 11 Construction Contracts
IAS 12 Income Taxes
IAS 16 Property, Plant and Equipment
IAS 17 Leases
IAS 18 Revenue
IAS 19 Employee Benefits
IAS 20 Accounting for Government Grants and Disclosure of Government Assistance
IAS 21 The Effects of Changes in Foreign Exchange Rates
IAS 23 Borrowing Costs
IAS 24 Related Party Disclosures
IAS 26 Accounting and Reporting by Retirement Benefit Plans
IAS 27 Separate Financial Statements
IAS 28 Investments in Associates and Joint Ventures
IAS 29 Financial Reporting in Hyperinflationary Economies
IAS 32 Financial Instruments: Presentation
IAS 33 Earnings per Share
IAS 34 Interim Financial Reporting
IAS 36 Impairment of Assets
IAS 37 Provisions, Contingent Liabilities and Contingent Assets
IAS 38 Intangible Assets
IAS 39 Financial Instruments: Recognition and Measurement
IAS 40 Investment Property
IAS 41 Agriculture
Why is IFRS important?
IFRS is important because it makes important elements involved in international trade
comparable and more transparent. International Trade has a major impact on the economy and
IFRS provides a unified method for the Accounting procedure that opens the door of new
opportunities for businesses and investors.
What are the IFRS principles?
IFRS standards are International Financial Reporting Standards (IFRS) that consist of a set of
accounting rules that determine how transactions and other accounting events are required to be
reported in financial statements.
What are the main objectives of IFRS?
Its principal objectives are:
● to develop, in the public interest, a single set of high quality, understandable, enforceable
and globally accepted international financial reporting standards (IFRS Standards) based
upon clearly articulated principles. ...
● to promote the use and rigorous application of those standards
What are the 4 principles of GAAP (Generally Accepted Accounting Principles)?
● The four basic constraints associated with GAAP include objectivity, materiality,
consistency and prudence.
How many countries use IFRS?
● More than 120 nations and reporting jurisdictions permit or require IFRS for domestic
listed companies, although approximately 90 countries have fully conformed with IFRS
as promulgated by the IASB and include a statement acknowledging such conformity in
audit reports.
What is IFRS and its advantages?
● The importance of IFRS grew as they provide greater comparability of financial
information for investors and also encourage them to invest across borders. Studies show
that, IFRS adoption help in lowering the cost of capital for the companies and benefits
more efficient allocation of capital.
What is the IFRS conceptual framework?
● The Conceptual Framework sets out a comprehensive set of concepts for financial
reporting, standard setting, guidance for preparers in developing consistent accounting
policies and assistance to others in their efforts to understand and interpret the standards.
List of Accountancy Bodies worldwide:
https://en.wikipedia.org/wiki/List_of_accountancy_bodies
What is IFRS framework?
● IFRS is the international accounting framework within which to properly organize and
report financial information. It is derived from the pronouncements of the London-based
International Accounting Standards Board (IASB). It is currently the required accounting
framework in more than 120 countries.
Why conceptual framework is needed for accounting standards?
● The main reasons for developing an agreed conceptual framework are that it provides a
framework for setting accounting standards, a basis for resolving accounting disputes,
fundamental principles which then do not have to be repeated in accounting standards.
What are the basic elements of the conceptual framework?
● The basic components of a conceptual framework include the general purpose of
financial reporting, the qualitative characteristics of accounting.
What is the relationship between conceptual framework and accounting
standard?
The conceptual framework is an articulate system of interconnected objectives and essentials
that can lead to constant standards which would describe financial accounting and financial
statements. The Accounting standards, on the other hand, are the ways that you follow while
preparing accounts.
