International Financial Reporting Standards, What is IFRS, List of IFRS, Objective of International Financial Reporting Standards, Ebizfiling

International Financial Reporting Standards: What is IFRS? And List of IFRS

“What is IFRS?”, Objective of International Financial Reporting Standards and List of IFRS

Introduction

There have been significant developments in the financial reporting industry in India. The compliance and reporting requirements shift along with the expansion of international trade. It is becoming more and more challenging to present an entity’s financial statements in line with the reporting rules of every nation where it operates. This article will include information on “What is IFRS?”, the objective of International Financial Reporting Standards, and the List of IFRS.

What is IFRS (International Financial Reporting Standards)?

In order to promote openness in the presentation of financial information, the International Accounting Standards Board (IASB) has created the International Financial Reporting Standards (IFRS), which are accounting standards. The International Accounting Standards Board (IASB) was established in 2001.

 

It replaced the International Accounting Standards Committee (IASC), which had been tasked with creating global accounting standards before. London is home to the IASB. Additionally, it has made available the “Conceptual Framework for Financial Reporting,” published in September 2010, which offers a conceptual framework and the cornerstone for IFRS’s accounting standards.

 Objective of International Financial Reporting Standards

  • Aid in creating accurate financial records

The information reported in the books of accounts is likely to be accurate, dependable, uniform, and suitable within the parameters of its regulations if International Financial Reporting Standards are adhered to. Investors can make wise financial judgements thanks to the high quality of financial records.

  • Establish a Common Law

To bring everyone on the same page, one of its main goals is to ensure that common law is introduced and adopted by the greatest number of jurisdictions and nations. It makes sure that everyone abides by the same rules and uses a common format for reporting company activities.

  • Ensure transparency, comparability, and flexibility

The financial records of complying organizations across different countries can be easily compared because of the consistency in reporting accounting practices. Before making an investment, investors can use these comparisons to discover risks and opportunities. It encourages international investment and trade as a result.

  • Aid evaluation

It aids stakeholders in deciphering a company’s financial status and performance. These standards, for instance, are used by businesses and governments to provide trustworthy financial statements. It assists in accurately and consistently categorizing and reporting financial data. These financial records aid in decision-making and improve understanding.

Information on financial statement under IFRS

The following would ideally make up a comprehensive set of financial statements prepared in accordance with IFRS:

  • A balance sheet, which is just a statement of financial condition as of the conclusion of the period.
  • A statement of profit and loss for the year as well as a statement of other comprehensive income, which would contain any revenue or expenses that were not taken into account in the profit and loss account in order to adhere to other applicable requirements.

The above two statements can either be shown together or separately.

  • A reconciliation between the amounts indicated at the start and end of the year is included in a statement of changes in equity.
  • A cash flow statement for the time period.
  • Notes to the financial statements, which include an overview of the key accounting principles used and other supporting details.

In the following cases, a statement of the financial condition from an earlier period may occasionally be included in the financial statements:

  • When an entity restates an item in its financial accounts retroactively; when an entity applies an accounting policy retrospectively; or
  • when a company changes the classification of an item in its financial accounts.

List of IFRS

IFRS Standard Number  

IFRS Standard Title

1

First-time Adoption of International Financial Reporting Standards

2

Share-based Payment

3

Business Combinations

4

Insurance Contracts

5

Non-current Assets Held for Sale and Discontinue Operations

6

Exploration and Evaluation of Mineral Resources

7

Financial Instruments: Disclosures

8

Operating Segments

9

Financial Instruments

10

Consolidated Financial Statements

11

Joint Arrangements

12

Disclosure of Interests in Other Entities

13

Fair Value Measurement

14

Regulatory Deferral Accounts

15

Revenue from Contracts with Customers

16

Leases

17

Insurance Contracts

Conclusion

International Financial Reporting Standards (IFRS) standards define how transactions and other accounting events must be represented in financial statements. They are made up of a collection of accounting rules. They are made to maintain the financial industry’s reputation and openness, allowing investors and business operators to make wise financial decisions.

About Ebizfiling -

EbizFiling is a concept that emerged with the progressive and intellectual mindset of like-minded people. It aims at delivering the end-to-end incorporation, compliance, advisory, and management consultancy services to clients in India and abroad in all the best possible ways.
 
To know more about our services and for a free consultation, get in touch with our team on  info@ebizfiling.com or call 9643203209.
 
Ebizfiling

Author: zarana-mehta

Zarana Mehta is an MBA in Finance from Gujarat Technology University. Though having a masters degree in Business Administration, her upbeat and optimistic approach for changes led her to pursue her passion i.e. Creative writing. She is currently working as Content Writer at Ebizfiling.

Follow Author

Leave a Reply

Your email address will not be published.

Reviews

  • Ebizfiling, Ebizfiling.com

    Jaydipkumar Babriya

    18 Apr 2022

    Excellent service with a high level of professionalism. They not only applied for trademark, got it registered but also provided guidance and advisory thereof. That's amazing experience!! Really deserve 5 out of 5!!

  • Ebizfiling, Ebizfiling.com

    Kunal Undirwade

    04 Apr 2022

    I registered my company from Ebizfilling. I have had a great experience with them. Their services and work are very beautiful and understandable to everyone. At first I thought that these people would work or not and I was skeptical about how they would work properly. But here I was very much assisted by Divya Gehlot and Madam Sejal. I am very happy with the service / help provided by them and I wish them success in their endeavors. Also my best wishes to the entire Ebizfilling team

  • Client review, Ebizfiling

    Nitika Shah

    01 May 2018

    Completely satisfied with their services. Great going Ebizfiling!

Hi, Welcome to EbizFiling!

Hello there!!! Let us know if you have any Questions.

Thank you for your message.

whatsapp Call Now Button