International Financial Reporting Standards
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International Financial Reporting Standards (IFRS) along with International Accounting Standards (IAS) are a set of accounting standards. They are issued by the International Accounting Standards Board (IASB). IAS's are no longer produced although are still in effect unless replaced by an IFRS, whether in its entirety or part of.
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Adaptation and convergence
IFRS are used in many countries in the world, including Hong Kong and Russia, certain European countries, and recently Australia.
Australia
The Australian Accounting standards, previous to 1 January 2005, were based around accounting standards developed by the Australian Accounting Standards Board (AASB). As a result of pressure towards international harmonisation, the AASB had been working towards a convergence between the Australian Standards and the IFRS. From 1 January 2005, the Australian equivalent of IFRS have been fully implemented as AASB 101 - 141. It is a requirement that all reporting entities adopt the standards as they have replaced the previous Australian generally accepted accounting principles. Due to the accounting standards operating halfway through the year, the requirements can be summarised as follows:
- Year ended 30 June 2004 - Prepare under pre IFRS standards and state in notes the expected effect of the adoption of IFRS
- Year ended 30 June 2005 - Prepare under pre IFRS standards and prepare a reconciliation to IFRS standards
- Year ended 30 June 2005 - Prepare under Australian Equivalents to IFRS standards
European Union
All companies listed in the EU are required by the European Commision to prepare their consoldiated accounts using IFRS from 2005. Prior to 2005 there were around 350 publicly listed companies that use IFRS - in 2005 the figure will be around 7000.
Russia
The government of Russia has been implementing a program to harmonize its national accounting standards with IFRS since 1998. As of 2004, only financial institutions are required to prepare IFRS reports.
Details
IFRSs are considered a "principles-based" set of standards, in that they establish broad rules rather than dictating specific treatments. As of 2002 a number of IFRSs offer the preparer choices of treatments; the IASB's Improvements Project is seeking to reduce these choices.
International accounting standards currently in use are as follows:
- 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
- IAS 1: Presentation of Financial Statements
- IAS 2: Inventories
- IAS 7: Cash Flow Statements
- IAS 8: Net Profit or Loss for the Period, Fundamental Errors and Changes in Accounting practices
- IAS 10: Events After the Balance Sheet Date
- IAS 11: Construction Contracts
- IAS 12: Income Taxes
- IAS 14: Segment Reporting
- IAS 15: Information Reflecting the Effects of Changing Prices
- 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 22: Business Combinations
- IAS 23: Borrowing Costs
- IAS 24: Related Party Disclosures
- IAS 26: Accounting and Reporting by Retirement Benefit Plans
- IAS 27: Consolidated Financial Statements
- IAS 28: Investments in Associates
- IAS 29: Financial Reporting in Hyperinflationary Economies
- IAS 30: Disclosures in the Financial Statements of Banks and Similar Financial Institutions
- IAS 31: Financial Reporting of Interests in Joint Ventures
- IAS 32: Financial Instruments: Disclosure and Presentation
- IAS 33: Earnings per Share
- IAS 34: Interim Financial Reporting
- IAS 35: Discontinuing Operations
- 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
External Links
- List of current standards and links to standards' summaries on IASB website
- BDO Australia IFRS Conversion Guide
| Index/Links to current IFRSs and IASs | |||
| IFRS/IAS Main page | IFRS 1 | IFRS 2 | IFRS 3 | IFRS 4 | IFRS 5 IAS 1 | IAS 2 | IAS 7 | IAS 8 | IAS 10 | IAS 11 | IAS 12 | IAS 14 | IAS 15 | IAS 16 | IAS 17 | IAS 18 | IAS 19 | IAS 20 | IAS 21 | IAS 22 | IAS 23 | IAS 24 | IAS 26 | IAS 27 | IAS 28 | IAS 29 | IAS 30 | IAS 31 | IAS 32 | IAS 33 | IAS 34 | IAS 35 | IAS 36 | | |||
Categories: Accounting | IFRS | IAS
