Meaning, Need and importance of IFRS
Programme Bachelor of Commerce
Subject IFRS – IND AS
Presented By MAHESH A
Assistant Professor
Learning Objectives
Empowering with the relevance and importance
of IFRS
Enriching with basic and advanced concepts of
IFRS
Session Outcomes
To familiarize the students on
Relevance and Importance of IFRS
Introduction to IFRS
Abbreviations Used
IFRS International Financial Reporting Standards
IASB International Accounting Standards Board
IAS International Accounting Standards
IFRIC International Financial Reporting Interpretation Committee
SIC Standing Interpretations Committee
SMEs Small and Medium sized Enterprises
What is IFRS?
IFRS stands for International Financial Reporting
Standards and issued by IASB.
It includes
IAS until they are replaced by any IFRS
Interpretations originated by the IFRIC
or its predecessor, the former Standing
Interpretations Committee (SIC).
IAS to IFRS
1973
(IASC) 2001
International Accounting (IASB)
Standards Committee International Accounting
2000 Standards Board
International
Accounting IFRS
Standards
IAS SIC IFRS IFRS IC
International Reporting Standards (IFRSs)
IFRS Applicable to
Applicable to general purpose financial
statements and other financial reporting of all
profit-oriented entities.
(Engaged in commercial, industrial, financial and similar
activities, whether organized in corporate or in other forms
also includes mutual insurance companies, other mutual
co-operative entities, etc.)
IFRS for SMEs
A separate set of IFRS for SMEs has been issued by
the IASB in July 2009.
IFRS for SME represents
“a simplified set of standards with reduced
disclosure requirements, methods for
recognition and measurement simplified and
topics not relevant to them are eliminated.”
Objectives of IFRS
To Develop single set of High Quality,
understandable, enforceable and globally
accepted financial reporting standards.
To ensure high quality, transparency and
comparability
To promote the use and rigorous application
To promote and facilitate for
adoption/convergence
Need and Importance of IFRS
Cross-border transactions and the free flow of
international capital.
Investors seek diversification and investment
opportunities across the world
International operations and subsidiaries in
multiple countries.
Multiple financial reports were exist.
Need & Importance of IFRS
IFRS Standards address these challenges
by providing a high quality, internationally
recognised set of accounting standards
that bring transparency, accountability
and efficiency to financial markets
around the world.
To sum up
IFRS were established to bring consistency
to accounting standards and practices,
regardless of the company or the country.
They are issued by the IASB and address
record keeping, account reporting and
other aspects of financial reporting.
IFRS benefit companies and individuals
alike in fostering greater corporate
transparency.
References
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