Equipping Modern Enterprises with Powerful GST & E-Way Bill Solutions

  • GST Filing & Reconciliation
  • E-Way Bill Automation
  • GSTIN Search & E-Way Bill APIs

IFRS ( International Financial Reporting Standards )

Updated on April 4th, 2019 in Finance & Accounts

What is IFRS?

International Financial Reporting Standards (IFRS) are set of standard rules and regulations introduced by the International Accounting Standards Board (IASB). The main objective behind the introduction of IFRS was to increase consistency, transparency and comparability of financial statements around the globe.

What is IASB?

IASB or International Accounting Standards Board is a London based autonomous body that came into existence in 2001 with the aim of developing the International Financial Reporting Standards (IFRS). IASB replaced the International Accounting Standards Committee (IASC) that was previously given the responsibility to establish international accounting standards (IAS). In 2010, IASB announced the Conceptual Framework for Financial Reporting to provide a basic understanding of accounting practices under IFRS.

Advantages of IFRS

Here are some of the major benefits of IFRS:

  • Widely accepted: Financial statements created as per IFRS are widely accepted as IFRS are adopted by 144 jurisdictions out of 166.
  • Comparability: As IFRS are set of rules that are widely accepted so it helps an individual to compare different companies of different nations following IFRS can be easily compared.
  • Extended Guidance: IFRS gives guidance relating to the applicability of various principles given in standards as per the situation.
  • Amendment in standards: In a case, if there are changes in the economy, IFRS can be amended according to such economic changes.

IFRS Standard Components

The scope of IFRS covers a broad range of accounting practices. IFRS set compulsory rules for some business practices such as

  • Balance sheet or financial position statements: IFRS impact the manner according to which the components of a balance sheet are reported.
  • Statement of Profit and loss or Income or expenditure statement: The parts of such statement are influenced as per the set of rules set by IFRS.
  • Cash flow statement: This report shows the operating, financial and investing activities of the company in the given period.

A company shall also provide its accounting policies summary along with the above-mentioned financial statements. The reports formed are compared with the preceding report to analyze the changes to make the necessary decision.

List of IFRS and IAS

Before IFRS, IASC had already issued International Accounting Standards (IAS) that was introduced between 1973 and 2001. Here is the list of IAS and the IFRS as they both are applicable in the current scenario:

 

 IFRS/IAS

Particulars

IFRS 1

International Financial Reporting Standards for first adoption of IFRS

IFRS 2

International Financial Reporting Standards relating to share based payments

IFRS 3

International Financial Reporting Standards regarding business combination

IFRS 4

International Financial Reporting Standards for insurance contract

IFRS 5

International Financial Reporting Standards relating to non-current assets held for sale and discontinue operation

IFRS 6

International Financial Reporting Standards regarding exploration and evaluation of mineral resources

IFRS 7

International Financial Reporting Standards for disclosure of financial instruments

IFRS 8

International Financial Reporting Standards regarding operating segments

IFRS 9

International Financial Reporting Standards relating to financial instruments

IFRS 10

International Financial Reporting Standards for consolidated financial statements

IFRS 11

International Financial Reporting Standards relating to joint arrangements

IFRS 12

International Financial Reporting Standards for interest disclosure in other entities

IFRS 13

International Financial Reporting Standards regarding fair value measurement

IFRS 14

International Financial Reporting Standards for regulatory deferral accounts

IFRS 15

International Financial Reporting Standards relating to revenue from customer contracts

IFRS 16

International Financial Reporting Standards for leases

IFRS 17

International Financial Reporting Standards regarding insurance contracts

IAS 1

International Accounting Standard for Financial Statements Presentations

IAS 2

International Accounting Standard related to inventories

IAS 7

International Accounting Standard regarding Cash flow statements

IAS 8

International Accounting Standard for Accounting policies, changes in accounting estimates and errors

IAS 10

International Accounting Standard relating to Accounting for events after the reporting period

IAS 11

International Accounting Standard for construction contracts

IAS 12

International Accounting Standard regarding Income taxes

IAS 16

International Accounting Standard relating to property, plant and equipment

IAS 17

International Accounting Standard for leases

IAS 18

International Accounting Standard relating to revenue

IAS 19

International Accounting Standard includes employee benefits

IAS 20

International Accounting Standard for accounting for government grants and disclosure of government assistance

IAS 21

International Accounting Standard related to effect of change in foreign exchange rates

IAS 23

International Accounting Standard regarding borrowing cost

IAS 24

International Accounting Standard for related party disclosure

IAS 26

International Accounting Standard relating to accounting and reporting by retirement benefit plans

IAS 27

International Accounting Standard for separate financial statements

IAS 28

International Accounting Standard regarding investments in associates and joint ventures.

IAS 29

International Accounting Standard relating to financial reporting in hyperinflationary economies

IAS 32

International Accounting Standard for presentation of financial instruments

IAS 33

International Accounting Standard relating to earnings per share

IAS 34

International Accounting Standard includes interim financial reporting

IAS 36

International Accounting Standard for impairment of assets

IAS 37International Accounting Standard includes Provisions, contingent assets and liabilities
IAS 38International Accounting Standard regarding intangible assets
IAS 39International Accounting Standard for recognition and measurement of financial instruments
IAS 40International Accounting Standard relating to investment property
IAS 41International Accounting Standard for agriculture

 

 

Reduce GST Compliance

Reduce GST Compliance

E-Way Bill through Tally

E-Way Bill through Tally

GST Suvidha Kendra

Want to open GST Suvidha Kendra