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IFRS Presentation

This presentation provides an overview of International Financial Reporting Standards (IFRS). It discusses the history and establishment of IFRS by the International Accounting Standards Board. IFRS aims to establish a single set of high-quality global accounting standards to increase comparability. The presentation outlines some key characteristics of IFRS like understandability, comparability, and relevance. It also discusses reasons for adopting IFRS like streamlining financial reporting and facilitating cross-border investments. The impact of implementing IFRS in India is explained, along with current challenges regarding awareness, training, and amendments needed to laws. Differences between IFRS and Indian accounting standards are highlighted.

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Rizwan Basha Lalahmed
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166 views9 pages

IFRS Presentation

This presentation provides an overview of International Financial Reporting Standards (IFRS). It discusses the history and establishment of IFRS by the International Accounting Standards Board. IFRS aims to establish a single set of high-quality global accounting standards to increase comparability. The presentation outlines some key characteristics of IFRS like understandability, comparability, and relevance. It also discusses reasons for adopting IFRS like streamlining financial reporting and facilitating cross-border investments. The impact of implementing IFRS in India is explained, along with current challenges regarding awareness, training, and amendments needed to laws. Differences between IFRS and Indian accounting standards are highlighted.

Uploaded by

Rizwan Basha Lalahmed
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Presentation on International Financial Reporting Standards

By:Sinto Aparna Saikiran Kishore Bhavesh Abhimanyu

History
International Financial Reporting Standards (IFRS)are

principles-basedStandards,Interpretationsandthe Framework(1989). AdoptedbyInternationalAccountingStandardsBoard (IASB). Fewstandardsareknownbytheformernameof InternationalAccountingStandards(IAS). OnApril12001,thenewIASBtookovertheresponsibility forsettingIAS.

WhatisIFRS?
ItsaUniversalfinancialreportingLanguage IAS/IFRSisasinglesetofhighquality,understandableandenforceableglobal

accountingstandards. ThereisaFrameworkforthePreparationandPresentationofFinancial Statements. Detailsthequalitativecharacteristicsoffinancialstatements,specifiesthe requiredreportingelements,constraintsandassumptionsinvolved. Qualitative Characteristics: a)Understandability:Customershouldbeabletoreadilyunderstandthe statement. b)Comparability: Isconsistentamongfirmsandacrosstimeperiods. c)Relevance: Timely,sufficientlydetailed,influencesdecisionsandaffectsusers evaluation. d)Reliability:Reflectseconomicreality,isunbiased,andisfreeofmaterial errors.

WhyIFRS?
Companiescanstreamlinetheirfinancialreporting.Thisreduces

relatedreportingcosts. Crossborderinvestmentsleadingtoeconomicgrowth. Comparabilityoffinancialstatementsofanytwocompanies anywhereintheworld. Globalizationofeconomyandworldtrade Timeandmoneysavedbyinternationalprofessionalaccounting firmsinplanningandexecutionofaccountingandaudits.

ImpactofIFRSIndianContext
To Whom Its Applicable:

ComplianceswithIFRSinIndiaisrestrictedtoPublic Enterpriseswhichincludethosecompanies&entitieslistedon anystockexchangeorhaveraisedmoneyfromthepublic,or havepublicinterest,orpublicsectorcompanies.

Impact : Implementation will affect:

Presentationofdocuments,theaccountingpoliciesand procedures,thewaylegaldocumentsaredrafted,thewaythe entitycommunicatedwithitsstakeholdersandconductsits business.

CurrentIndianScenario
Implementation in India

ThegovernmentwantedtoconvergeIndianAccounting StandardswithIFRSfromApril1st ,2011.Butishasbeen postponedtillalaterdateisannouncedbytheministry. Challenges a)Awarenessaboutinternationalpractice b)Training c)Amendmentstotheexistinglaw d)Taxation e)Fairvalue

IGAAP vs. IFRS


Particulars
1 ) C o m p o n e n ts o f Fi a n ci l n a S ta te m e n ts

IGAAP
C o m p ri s o f se B a l n ce sh e e t a Pro fi a n d Lo ss A / c t C a sh fl w sta te m e n t a n d o N o te s to A cco u n ts

IFRS
C o m p ri s o f se S ta te m e n t o f Fi a n ci l n a Po si o n , S ta te m e n t o f ti C o m p re h e n si I co m e ve n S ta te m e n t o f C a sh fl w o N o te s to A cco u n ts S ta te m e n t o f C h a n g e s i n Equi ty

2)CashFlowStatement 3)Dividends

E xe m p te d fo r Le ve l 3 e n ti e s a s p re scri e d b y ti b I AI C .

Mandatoryforall entities

D i d e n d s d e cl re d a fte r D i d e n d s d e cl re d a fte r vi a vi a th e e n d o f th e re p o rti g th e e n d o f th e re p o rti g n n p e ri d b u t b e fo re th e o p e ri d b u t b e fo re th e o fi a n ci l sta te m e n ts a re fi a n ci lsta te m e n ts a re n a n a a p p ro ve d a re re co rd e d a s a u th o ri d fo r i e a re ze ssu l a b i i i th e fi a n ci l i l ty n n a n o t re co rd e d a s l a b i i i i l ty n sta te m e n ts. th e fi a n ci lsta te m e n ts. n a

IGAAP VS IFRS CONTD..


Particulars 4)Accountingfor foreigncurrency transactions
5 ) Fu n cti n a l cu rre n cy o

IGAAP

IFRS

Exchangedifferences Allexchange onforeigncurrency differencesare transactionsare includedinthe recognizedinthe determiningnet P&LAccount. incomefortheperiod D o e s n o t d e fi e n C u rre n cy o f p ri a ry m fu n cti n a l cu rre n cy . o e co n o m i e n vi n m e n t c ro inwhichdifferences i w h i e n ti n ty arise. ch
o p e ra te s. D i o se d a s p re p a i scl d D i o se d a s a p a rt o f scl a sse ts a n d a cco u n ti g fi d a sse ts. n xe tre a tm e n t i si i a r to s m l o p e ra ti g l a se s. n e

6 ) Le a se h o l La n d d

THANK YOU.

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