International Financial Reporting Standards And International Accounting Standards

Difference Between International Financial Reporting Standards (IFRS) & International Accounting Standards (IAS)

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.

Listing Of International Financial Reporting Standards (IFRSs) at 1/1/2007:-

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

List of International Accounting Standards (IASs) at 1/1/2007:

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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