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IFRS Learning Material

IFRS, or International Financial Reporting Standards, are accounting standards created by the IASB to ensure consistency and transparency in global financial reporting. The standards promote comparability, enhance the quality of financial information, and require extensive disclosures. IFRS is principles-based and used in over 140 countries, contrasting with GAAP, which is rules-based and primarily used in the United States.

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16 views2 pages

IFRS Learning Material

IFRS, or International Financial Reporting Standards, are accounting standards created by the IASB to ensure consistency and transparency in global financial reporting. The standards promote comparability, enhance the quality of financial information, and require extensive disclosures. IFRS is principles-based and used in over 140 countries, contrasting with GAAP, which is rules-based and primarily used in the United States.

Uploaded by

lindsmurs
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Learning Material: IFRS (International Financial Reporting Standards)

What is IFRS?

IFRS stands for International Financial Reporting Standards. These are accounting standards
developed by the International Accounting Standards Board (IASB) to bring consistency and
transparency to financial reporting globally.

Purpose of IFRS

- Promote comparability and transparency of financial statements across international boundaries.


- Help investors and stakeholders make informed economic decisions.
- Improve the quality and understandability of financial information.

Key Features of IFRS

- Principles-based approach rather than rules-based.


- Focus on the economic substance of transactions.
- Emphasizes fair value measurement in many areas.
- Requires extensive disclosures to enhance transparency.

Important IFRS Standards

1) IAS 1: Presentation of Financial Statements


2) IAS 2: Inventories
3) IAS 7: Statement of Cash Flows
4) IAS 16: Property, Plant, and Equipment
5) IFRS 9: Financial Instruments
6) IFRS 15: Revenue from Contracts with Customers
7) IFRS 16: Leases
8) IFRS 17: Insurance Contracts

IFRS vs. GAAP

- IFRS is used in over 140 countries worldwide, while GAAP is primarily used in the United States.
- IFRS is principles-based, GAAP is more rules-based.
- IFRS generally requires more disclosure and emphasizes substance over form.
- Differences in treatment of revenue recognition, inventory valuation, and fixed assets.

Importance of IFRS

- Facilitates cross-border investment.


- Enhances global comparability of financial reports.
- Promotes transparency and accountability.
- Supports efficient capital markets and economic growth.

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