International Financial Reporting Standards

International Financial Reporting Standards

International Financial Reporting Standards (IFRS known by the acronym derived from the name in English International Financial Reporting Standards) is a set of accounting standards. Now they are issued by the International Accounting Standards Board (IASB). Many of the standards forming part of IFRS are known by its old name of International Accounting Standards (IAS).
IAS were issued between 1973 and 2001 by the International Accounting Standards Committee (IASC). In April 2001 the IASB adopted all IAS, then continuing their development. The new standards, however, bears the name of IFRS.
Although currently there are no longer issued IAS standards, existing ones are still in force until replaced or amended by issuing new IFRS standards.Content[Hide]

    * Applicability of IFRS 1
          a European Union 1.1
          a 1.2 Convergence with U.S. GAAP
    * IFRS 2 Structure
          a list IFRS 2.1
    * 3 Grades
[Edit] Applicability of IFRS
IFRS are used in many countries around the world including in the Member States of the European Union (EU), Hong Kong, Australia, Russia, South Africa, Singapore and Pakistan. Approximately 100 countries require or allow use of IFRS or convergence policy to them. [1]
For the situation to date, see the list of states that have adopted IFRS IAS Plus website.[Edit] European Union
All EU listed companies are currently required to prepare consolidated financial statements in accordance with IFRS.
To be approved for use in the EU, standards must be approved by the Accounting Regulatory Committee (ARC), composed of representatives of member governments and is advised by an expert group called the European Financial Reporting Advisory Group (EFRAG ).
Two sections of IAS 39 Financial Instruments: Recognition and evaluation have not been approved by the ARC and in this respect, applied IFRS in the EU are different from those issued by the IASB. Currently, the IASB cooperates with the EU to find an acceptable way to address this anomaly.
As IFRS are now part of European legislation, approved standards and all amendments thereto subsequently agreed to be published in the Official Journal of the European Union. On October 13, 2003, the first publication of the standards has been included in PB L 261. Amendments to IAS and IFRS standards published in the past can be monitored using the website of the European Union's Internal Market Directorate on implementation of IAS in the European Union.[Edit] Convergence with U.S. GAAP
In a meeting held in 2002 in Norwalk, Connecticut, the IASB and the Financial Accounting Standards Board in the United States of America (FASB) have agreed to harmonize their agendas and work together to reduce differences between IFRS and U.S. Generally Accepted Accounting Principles (U.S. GAAP). In February 2006, the FASB and IASB have signed a Memorandum of Understanding which contains a schedule of matters to which the two organizations intend to achieve convergence by 2008.
Securities and Exchanges Commission in the U.S. (SEC) currently requires all foreign companies listed on U.S. exchanges to prepare financial statements either in accordance with U.S. GAAP or in accordance with their local accounting standards, accompanied by a note to reconcile standards local U.S. GAAP. This requirement creates significant costs for listed companies while the U.S. and other countries. The SEC has proposed to amend this rule to eliminate the obligation to make a reconciliation to U.S. GAAP for foreign companies that prepare their financial statements in accordance with IFRS, in principle since 2009. [2] Companies based in the U.S. will still be required to report in accordance with U.S. GAAP.[Edit] Structure IFRS
IFRS are considered to be a set of standards "based on principles", as laid down general rules, but require specific accounting and certain treatments.
International Financial Reporting Standards include:

    * International Financial Reporting Standards (IFRS) - standards issued after 2001
    * International Accounting Standards (IAS) - standards issued before 2001
    * Interpretations of the International Committee on Financial Reporting Interpretations Committee (IFRIC) - issued after 2001
    * Interpretations of the Standing Interpretations Committee (SIC) - issued before 2001
There is also a General Framework for the Preparation and Presentation of Financial Statements, which describes some of the principles underlying IFRS.[Edit] List IFRS
The following standards are currently in force:

    * 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

    * IAS 1 Presentation of Financial Statements
    * IAS 2: Inventories
    * IAS 7: Cash flow statement
    * 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: Consolidated and Separate Financial Statements
    * IAS 28: Investments in Associates
    * IAS 29: Financial reporting in hyperinflationary economies
    * IAS 31: Interests in Joint Ventures
    * 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