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Understanding IFRS Pronouncements and Authority

The document discusses International Financial Reporting Standards (IFRS) and how companies determine which standards to follow when preparing their financial statements. It explains that IFRS includes standards, interpretations, and the conceptual framework. Companies first check if a topic is addressed by an IFRS standard and follow that standard. If not, they review IFRS interpretations and the conceptual framework for guidance.

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67 views1 page

Understanding IFRS Pronouncements and Authority

The document discusses International Financial Reporting Standards (IFRS) and how companies determine which standards to follow when preparing their financial statements. It explains that IFRS includes standards, interpretations, and the conceptual framework. Companies first check if a topic is addressed by an IFRS standard and follow that standard. If not, they review IFRS interpretations and the conceptual framework for guidance.

Uploaded by

Moe Channel
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

time financial information, including fair values; (4) ethics in

accounting; and (5) international convergence.

Enhanced Review and Practice

Go online for multiple-choice questions with solutions, review


exercises with solutions, and a full glossary of all key terms.

Practice Problem
At the completion of Bloom NV's audit, the president, Judy Bloom,
asks about the meaning of the phrase “in conformity with IFRS” that
appears in your audit report on the management's financial
statements. Judy observes that the meaning of the phrase must
include something more and different than what she thinks of as
“standards.” Judy is curious about the pronouncements that are
encompassed in IFRS and wonders, if there are different types of
pronouncements, which are more authoritative than others?

Instructions

a. Describe the pronouncements that comprise IFRS.


b. Explain to Judy how a company determines which type of
pronouncement takes precedence when deciding the recognition,
valuation, and disclosure related to a particular transaction.

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