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Difference Between International Financial Reporting Standards (IFRS) & International Accounting Standards (IAS) |
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We often hear about IFRS and IAS. So what are the difference(s) between them and their background?
· First and foremost, the “I” definitely stands for International. These accounting standards are meant for the global arena supposed to be used by countries worldwide. Please note that each individual country in the world actually has its own Generally Accepted Accounting Practise (GAAP). Due to globalization, there is a dire need by the users of financial statements like the investors, fund managers and other to have consistent, uniform and transparent financial information (using the correct accounting concepts, principles or methodology) hence the need for the establishment of the international accounting standards (IFRS or IAS).
· Secondly, both IFRS and IAS, essentially are set of accounting standards.
· Thirdly, the main differentiation is that IASs were issued between 1973 and 2001 by the Board of the International Accounting Standards Committee (IASC). In April 2001 the IASB adopted all IASs and continued the development, calling new standards IFRSs.
Incidentally, take note that although IAS’s are no longer produced, they are still in effect unless replaced by an IFRS, whether in its entirety or part of . IFRS are now used in many countries in the world which include Singapore, Hong Kong and Russia, most European countries under the jurisdiction of the EU, and recently Australia. In Africa, South Africa has adopted the IFRS standards.
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Listing Of International Financial Reporting Standards (IFRSs) at 1/1/2007:- |
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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
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List of International Accounting Standards (IASs) at 1/1/2007: |
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IAS 1 Presentation of Financial Statements IAS 2 Inventories IAS 7 Cash Flow Statements IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors IAS 10 Events After the Balance Sheet Date 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
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