• • • The International Financial Reporting Standards, usually called the IFRS Standards, are issued by the and the (IASB) to provide a common global language for business affairs so that company are understandable and comparable across international boundaries. They are a consequence of growing international shareholding and trade and are particularly important for companies that have dealings in several countries. They are progressively replacing the many different national accounting standards.

They are the rules to be followed by accountants to maintain books of accounts which are comparable, understandable, reliable and relevant as per the users internal or external. IFRS, with the exception of IAS 29 Financial Reporting in Hyperinflationary Economies and IFRIC 7 Applying the Restatement Approach under IAS 29, are authorized in terms of the historical cost. IAS 29 and IFRIC 7 are authorized in terms of the units of constant purchasing power paradigm. IFRS began as an attempt to harmonize accounting across the European Union but the value of harmonization quickly made the concept attractive around the world. However, it has been debated whether or not de facto harmonization has occurred.

2017 IFRS® Standards (Red Book) - Downloadable PDF - is the only official printed edition of the consolidated text of the International Accounting Standards Board's authoritative pronouncements as issued at 1 January 2017. Please Note:IFRS Foundation only accepts orders for downloadable products from 'end users'.

Standards that were issued by IASC (the predecessor of IASB) are still within use today and go by the name International Accounting Standards (IAS), while standards issued by IASB are called IFRS. IAS were issued between 1973 and 2001 by the Board of the (IASC).

On 1 April 2001, the new (IASB) took over from the IASC the responsibility for setting International Accounting Standards. During its first meeting the new Board adopted existing IAS and Standing Interpretations Committee standards (SICs). The IASB has continued to develop standards calling the new standards 'International Financial Reporting Standards'. In the absence of a Standard or an Interpretation that specifically applies to a transaction, management must use its judgement in developing and applying an accounting policy that results in information that is relevant and reliable. In making that judgement, IAS 8.11 requires management to consider the definitions, recognition criteria, and measurement concepts for assets, liabilities, income, and expenses in the Framework. Criticisms of IFRS are (1) that they are not being adopted in the US (see ), (2) a number of criticisms from France and (3) that IAS 29 Financial Reporting in Hyperinflationary Economies had no positive effect at all during 6 years in Zimbabwe's hyperinflationary economy.

The IASB offered responses to the first two criticisms, but has offered no response to the last criticism while IAS 29 was as of March 2014 being implemented in its original ineffective form in Venezuela and Belarus. Contents • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • Objective of financial statements [ ] Financial statements are a structured representation of the financial positions and financial performance of an entity. The objective of financial statements is to provide information about the financial position, financial performance and cash flows of an entity that is useful to a wide range of users in making economic decisions. Financial statements also show the results of the management's stewardship of the resources entrusted to it. To meet this objective, financial statements provide information about an entity's assets and cash flows. This information, along with other information in the notes, assists users of financial statements in predicting the entity's future cash flows and, in particular, their timing and certainty.

The following are the general features in IFRS: • Fair presentation and compliance with IFRS: Fair presentation requires the faithful representation of the effects of the transactions, other events and conditions in accordance with the definitions and recognition criteria for assets, liabilities, income and expenses set out in the Framework of IFRS. • Going concern: Financial statements are present on a going concern basis unless management either intends to liquidate the entity or to cease trading, or has no realistic alternative but to do so. • Accrual basis of accounting: An entity shall recognise items as assets, liabilities, equity, income and expenses when they satisfy the definition and recognition criteria for those elements in the Framework of IFRS. • Materiality and aggregation: Every material class of similar items has to be presented separately. Items that are of a dissimilar nature or function shall be presented separately unless they are immaterial. • Offsetting: Offsetting is generally forbidden in IFRS.

However certain standards require offsetting when specific conditions are satisfied (such as in case of the accounting for defined benefit liabilities in IAS 19 and the net presentation of deferred tax liabilities and deferred tax assets in IAS 12 ). • Frequency of reporting: IFRS requires that at least annually a complete set of financial statements is presented. However listed companies generally also publish interim financial statements (for which the accounting is fully IFRS compliant)for which the presentation is in accordance with IAS 34 Interim Financing Reporting. • Comparative information: IFRS requires entities to present comparative information in respect of the preceding period for all amounts reported in the current period's financial statements.

In addition comparative information shall also be provided for narrative and descriptive information if it is relevant to understanding the current period's financial statements. The standard IAS 1 also requires an additional statement of financial position (also called a third balance sheet) when an entity applies an accounting policy retrospectively or makes a retrospective restatement of items in its financial statements, or when it reclassifies items in its financial statements. This for example occurred with the adoption of the revised standard IAS 19 (as of 1 January 2013) or when the new consolidation standards IFRS 10-11-12 were adopted (as of 1 January 2013 or 2014 for companies in the European Union). • Consistency of presentation: IFRS requires that the presentation and classification of items in the financial statements is retained from one period to the next unless. • it is apparent, following a significant change in the nature of the entity's operations or a review of its financial statements, that another presentation or classification would be more appropriate having regard to the criteria for the selection and application of accounting policies in IAS 8; or • an IFRS standard requires a change in presentation.

Qualitative characteristics of financial information [ ] Fundamental qualitative characteristics of financial information include: • Relevance • Faithful representation Enhancing qualitative characteristics include: • Comparability • Verifiability • Timeliness • Understandability Elements of financial statements [ ] The elements directly related to the measurement of the include: •: An asset is a resource controlled by the entity as a result of past events and from which future economic benefits are expected to flow to the entity. •: A liability is a present obligation of the entity arising from the past events, the settlement of which is expected to result in an outflow from the entity of resources embodying economic benefits, i.e. •: Nominal equity is the nominal residual interest in the nominal assets of the entity after deducting all its liabilities in nominal value. The financial performance of an entity is presented in the, which consists of the income statement (Statement of Profit/Loss) and the statement of other comprehensive income (usually presented in two separate statements). Financial performance includes the following elements (which are recognised in the income statement or other comprehensive income as required by the applicable IFRS standard): •: increases in economic benefit during an accounting period in the form of inflows or enhancements of assets, or decrease of liabilities that result in increases in equity.

However, it does not include the contributions made by the equity participants (for example owners, partners or shareholders). •: decreases in economic benefits during an accounting period in the form of outflows, or depletions of assets or incurrences of liabilities that result in decreases in equity.

However, these don't include the distributions made to the equity participants. Main article: IFRS financial statements consist of (IAS1.8) • a • a separate statements comprising an and separately a Statement of Comprehensive Income, which reconciles Profit or Loss on the Income statement to total • a (SOCE) • a or • notes, including a summary of the significant accounting policies Comparative information is required for the prior reporting period (IAS 1.36). An entity preparing IFRS accounts for the first time must apply IFRS in full for the current and comparative period although there are transitional exemptions (IFRS1.7).

On 6 September 2007, the IASB issued a revised Presentation of Financial Statements. The main changes from the previous version are to require that an entity must: • present all non-owner changes in equity (that is, 'comprehensive income' ) either in one Statement of comprehensive income or in two statements (a separate income statement and a statement of comprehensive income).

Components of comprehensive income may not be presented in the Statement of changes in equity. • present a statement of financial position (balance sheet) as at the beginning of the earliest comparative period in a complete set of financial statements when the entity applies the new standard. • present a statement of cash flow.

• make necessary disclosure by the way of a note. The revised IAS 1 is effective for annual periods beginning on or after 1 January 2009. Early adoption is permitted. Criticisms of IFRS [ ] In 2012 the US Securities and Exchange Commission Staff issued a of potential issues with IFRS that would need to be addressed before adoption by the United States.

The staff of the IFRS Foundation provided a detailed answer on the main criticisms in the SEC staff report. A number of criticisms were voiced in the beginning of 2013 in the French media to which the IASB Board member Philippe Danjou responded in his document 'An Update on International Financial Reporting Standards (IFRSs).' It is widely acknowledged that IAS 29 Financial Reporting in Hyperinflationary Economies had no positive effect during the six years it was implemented during hyperinflation in Zimbabwe.

[ ] This led people [ ] to ask the purpose of IAS 29. [ ] As of March 2014, IAS 29 was being implemented in its original ineffective form [ ] in Venezuela and Belarus.

It was suggested to the IASB in 2012 [ ] that IAS 29 should be corrected to require daily indexation which would result in effective and would stabilize the non-monetary economy during hyperinflation. The IASB has offered no response to date (March 2014) to this criticism and has not yet altered IAS 29 to require daily indexation. Adoption [ ] IFRS are used in many parts of the world, including the,,,,,,,,,,,, and, but not in the United States. It is generally expected that IFRS adoption worldwide will be beneficial to investors and other users of financial statements, by reducing the costs of comparing alternative investments and increasing the quality of information.

Companies are also expected to benefit, as investors will be more willing to provide financing. Companies that have high levels of international activities are among the group that would benefit from a switch to IFRS. Companies that are involved in foreign activities and investing benefit from the switch due to the increased comparability of a set accounting standard. However, has expressed some skepticism of the overall cost of the international standard; he argues that the enforcement of the standards could be lax, and the regional differences in accounting could become obscured behind a label.

He also expressed concerns about the fair value emphasis of IFRS and the influence of accountants from non- regions, where losses have been recognized in a less timely manner. To assess progress towards the goal of a single set global accounting standards, the IFRS Foundation has developed and posted profiles about the use of IFRSs in individual jurisdictions. These were based on information from various sources. The starting point was the responses provided by standard-setting and other relevant bodies to a survey that the IFRS Foundation conducted. Currently, profiles are completed for 124 jurisdictions, including all of the G20 jurisdictions plus 104 others. Eventually, the plan is to have a profile for every jurisdiction that has adopted IFRSs, or is on a programme toward adoption of IFRSs.

Australia [ ] The (AASB) has issued 'Australian equivalents to IFRS' (A-IFRS), numbering IFRS standards as AASB 1–8 and IAS standards as AASB 101–141. Australian equivalents to SIC and IFRIC Interpretations have also been issued, along with a number of 'domestic' standards and interpretations. These pronouncements replaced previous Australian generally accepted accounting principles with effect from annual reporting periods beginning on or after 1 January 2005 (i.e. 30 June 2006 was the first report prepared under IFRS-equivalent standards for June year ends). To this end, Australia, along with Europe and a few other countries, was one of the initial adopters of IFRS for domestic purposes (in the developed world).

It must be acknowledged, however, that IFRS and primarily IAS have been part and parcel of accounting standard package in the developing world for many years since the relevant accounting bodies were more open to adoption of international standards for many reasons including that of capability. The AASB has made certain amendments to the IASB pronouncements in making A-IFRS, however these generally have the effect of eliminating an option under IFRS, introducing additional disclosures or implementing requirements for not-for-profit entities, rather than departing from IFRS for Australian entities. Accordingly, for-profit entities that prepare financial statements in accordance with A-IFRS are able to make an unreserved statement of compliance with IFRS. The AASB continues to mirror changes made by the IASB as local pronouncements.

In addition, over recent years, the AASB has issued so-called 'Amending Standards' to reverse some of the initial changes made to the IFRS text for local terminology differences, to reinstate options and eliminate some Australian-specific disclosure. There are some calls for Australia to simply adopt IFRS without 'Australianising' them and this has resulted in the AASB itself looking at alternative ways of adopting IFRS in Australia. Brazil [ ] Brazil has already adopted IFRS for all companies whose securities are publicly traded and for most financial institutions whose securities are not publicly traded, for both consolidated and separate (individual) company financial statements. Canada [ ] The use of IFRS became a requirement for Canadian publicly accountable profit-oriented enterprises for financial periods beginning on or after 1 January 2011.

This includes public companies and other 'profit-oriented enterprises that are responsible to large or diverse groups of shareholders.' European Union [ ] In 2002 the European Union agreed that from 1 January 2005 International Accounting Standards / International Financial Reporting Standards would apply for the consolidated accounts of the EU listed companies. In order to be approved for use in the EU, standards must be endorsed by the Accounting Regulatory Committee (ARC), which includes representatives of member state governments and is advised by a group of accounting experts known as the. As a result, IFRS as applied in the EU may differ from that used elsewhere. Parts of the standard were not originally approved by the ARC.

IAS 39 was subsequently amended, removing the option to record financial liabilities at fair value, and the ARC approved the amended version. The is working with the EU to find an acceptable way to remove a remaining anomaly in respect of. The is working with countries in the ECA region to facilitate the adoption of IFRS and IFRS for SMEs. Whilst the IASB set the effective dates for the new consolidation standards IFRS 10 Consolidated Financial Statements, IFRS 11 Joint Arrangements and IFRS 12 Disclosure of Interests in Other Entities at 1 January 2013, the ARC decided to delay the mandatory effective date for the companies listed in the European Union by one year. The standards therefore only became effective on 1 January 2014. The European Commission has launched a general analysis of the impacts of 8 years of use of international financial reporting standards (IFRSs) in the EU for preparers and users of financial statements from the private sector.

The study will include an overall assessment of whether the Regulation 1606/2002 of the European Parliament and the Council ('IAS Regulation') has met the two-fold initial objectives of ensuring a high degree of transparency and comparability of the financial statements of European companies and an efficient functioning of the market, in comparison with the situation before IFRS implementation in 2005. It will also include a cost-benefit analysis and an assessment and analysis of the benefits and drawbacks brought by the IAS Regulation for different stakeholder groups. Ghana [ ] Ghana transitioned from the to adopt the IFRS on January 1, 2007. As of 2008 and beyond, a legislative injunction has been imposed on the to prepare financial statements in accordance with IFRS; thereby making it mandatory for all public entities in the country.

India [ ] The (ICAI) has announced that IFRS will be mandatory in India for for the periods beginning on or after 1 April 2016 in a phased manner. El Bufalo De La Noche Pdf Descargar. There is a roadmap issued by MCA for adoption of IFRS. Has stated that financial statements of banks need to be IFRS-compliant for periods beginning on or after 1 April 2011.

The ICAI has also stated that IFRS will be applied to companies above INR 1000 (INR 10 billion) from April 2011. Phase wise applicability details for different companies in India: Phase 1: Opening balance sheet as at 1 April 2011* i. Companies which are part of NSE Index – Nifty 50 ii. Companies which are part of BSE Index – Sensex 30 a. Companies whose shares or other securities are listed on a stock exchange outside India b.

Companies, whether listed or not, having net worth of more than INR 1000 crore (INR 10 billion) Phase 2: Opening balance sheet as at 1 April 2012* Companies not covered in phase 1 and having net worth exceeding INR 500 crore (INR 5 billion) Phase 3: Opening balance sheet as at 1 April 2014* Listed companies not covered in the earlier phases * If the financial year of a company commences at a date other than 1 April, then it shall prepare its opening balance sheet at the commencement of immediately following financial year. On 22 January 2010, the Ministry of Corporate Affairs issued the road map for transition to IFRS. It is clear that India has deferred transition to IFRS by a year. In the first phase, companies included in Nifty 50 or BSE Sensex, and companies whose securities are listed on stock exchanges outside India and all other companies having net worth of INR 10 billion will prepare and present financial statements using Indian Accounting Standards converged with IFRS.

According to the press note issued by the government, those companies will convert their first balance sheet as at 1 April 2011, applying accounting standards convergent with IFRS if the accounting year ends on 31 March. This implies that the transition date will be 1 April 2011. According to the earlier plan, the transition date was fixed at 1 April 2010. The press note does not clarify whether the full set of financial statements for the year 2011–12 will be prepared by applying accounting standards convergent with IFRS. The deferment of the transition may make companies happy, but it will undermine India's position.

Presumably, lack of preparedness of Indian companies has led to the decision to defer the adoption of IFRS for a year. This is unfortunate that India, which boasts for its IT and accounting skills, could not prepare itself for the transition to IFRS over last four years.

But that might be the ground reality. Transition in phases Companies, whether listed or not, having net worth of more than INR 5 billion will convert their opening balance sheet as at 1 April 2013. Listed companies having net worth of INR 5 billion or less will convert their opening balance sheet as at 1 April 2014. Un-listed companies having net worth of Rs5 billion or less will continue to apply existing accounting standards, which might be modified from time to time.

Transition to IFRS in phases is a smart move. The transition cost for smaller companies will be much lower because large companies will bear the initial cost of learning and smaller companies will not be required to reinvent the wheel. However, this will happen only if a significant number of large companies engage Indian accounting firms to provide them support in their transition to IFRS. If, most large companies, which will comply with Indian accounting standards convergent with IFRS in the first phase, choose one of the international firms, Indian accounting firms and smaller companies will not benefit from the learning in the first phase of the transition to IFRS. It is likely that international firms will protect their learning to retain their competitive advantage. Therefore, it is for the benefit of the country that each company makes judicious choice of the accounting firm as its partner without limiting its choice to international accounting firms. Public sector companies should take the lead and the Institute of Chartered Accountants of India (ICAI) should develop a clear strategy to diffuse the learning.

Size of companies The government has decided to measure the size of companies in terms of net worth. This is not the ideal unit to measure the size of a company. Net worth in the balance sheet is determined by accounting principles and methods. Keygen Php Maker Torrent on this page.

Therefore, it does not include the value of intangible assets. Moreover, as most assets and liabilities are measured at historical cost, the net worth does not reflect the current value of those assets and liabilities. Market capitalisation is a better measure of the size of a company. But it is difficult to estimate market capitalisation or fundamental value of unlisted companies. This might be the reason that the government has decided to use 'net worth' to measure size of companies. Some companies, which are large in terms of fundamental value or which intend to attract foreign capital, might prefer to use Indian accounting standards convergent with IFRS earlier than required under the road map presented by the government.

The government should provide that choice. Japan [ ] The minister for Financial Services in Japan announced in late June 2011 that mandatory application of the IFRS should not take place from fiscal year-ending March 2015; five to seven years should be required for preparation if mandatory application is decided; and to permit the use of U.S.

GAAP beyond the fiscal year ending 31 March 2016. Montenegro [ ] gained independence from in 2006. • To maintain the consistency of information declaration and supervision with other companies, the early adopted companies should still prepare individual and consolidated financial statements in accordance with domestic accounting standards.

• IFRS Foundation, (PDF), retrieved 18 May 2017. • ^ • • • • • • • • • • • • • • • • • • • • • • • • ^ • • • • • • • ^ Smith, N.J. (2012) CONSTANT ITEM PURCHASING POWER ACCOUNTING per IFRS, Ch. 1.22.2 Three Concepts of Capital Maintenance • • • • • (PDF).

Archived from (PDF) on 21 May 2009. Retrieved 26 July 2009. Framework for the Preparation and Presentation of Financial Statements, Par 104 • Full text of the Framework • • • • ^ Ball R. 21 August 2010 at the.

Accounting and Business Research • Bradshaw, M., et al (2010). Response to the SEC's Proposed Rule- Roadmap for the Potential Use of Financial Statements Prepared in Accordance with International Financial Reporting Standards (IFRS) by U.S. Accounting Horizons(24)1 • • •.. 13 February 2008.

Retrieved 8 August 2009. December 14, 2006. Retrieved January 13, 2016.

• Zori, Solomon George (5 August 2011).. Archived from on 24 April 2016. Retrieved 13 January 2016. • Ashish K Bhattacharyya (8 February 2010).. Business Standard.

Retrieved 2 August 2013. •, October 2011 • ^ van der Plaats, Erik; Nagy, David; Crnomarkovic, Aleksandar; Grabner, Gerhard; Kogler, Gerald; Hodgson, Eddie; Corrigan, Patrick; McEntee, Edward (2007). Retrieved 21 June 2012. Retrieved 21 June 2012. • 20 February 2008 at the., Retrieved 29 February 2008 Further reading [ ] • International Accounting Standards Board (2007): International Financial Reporting Standards 2007 (including International Accounting Standards (IAS(tm)) and Interpretations as at 1 January 2007), LexisNexis, • Original texts of IAS/IFRS, SIC and IFRIC adopted by the Commission of the European Communities and published in Official Journal of the European Union • Case studies of in,,,,,, and.

Prepared by the United Nations. • Wiley Guide to Fair Value Under IFRS,. • Perramon, J., & Amat, O. Economics Working Papers 975, Department of Economics and Business, Universitat Pompeu Fabra.

Available at SSRN 1002516. External links [ ] • —Free access to all IFRS standards, news and status of projects in progress • with news and downloadable documents • • • • • • with news and downloadable documents related to IFRS Conversions in Canada • Proposal for First-Time Application of International Financial Reporting Standards by Foreign private issuers registered with the SEC • Presented by Michael Wells, Director of the IFRS Education Initiative at the IASC Foundation • • with insights on IFRS Standards.