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An Overview of International Financial Reporting Standards

CA. Amit Daga (Finance Controller CA. CS. CFA. CIFRS. M.COM. ) (9017 Points)

03 April 2009

Dear All, From today onwards everyday i will start putting one IFRS in the article and forum and expected participation from all of you. Because future is IFRS .We need to start from now Best Regards Amit Daga

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CA. Amit Daga (Finance Controller CA. CS. CFA. CIFRS. M.COM. ) (9017 Points)
Replied 03 April 2009

An Overview of International Financial Reporting Standards

Standards. International Accounting Standards (IASs) were issued by the IASC from 1973 to 2000. The IASB replaced the IASC in 2001. Since then, the IASB has amended some IASs and has proposed to amend others, has replaced some IASs with new International Financial Reporting Standards (IFRSs), and has adopted or proposed certain new IFRSs on topics for which there was no previous IAS. Through committees, both the IASC and the IASB also have issued Interpretations of Standards.
Compliance with Standards. Financial statements may not be described as complying with IFRSs unless they comply with all of the requirements of each applicable standard and each applicable interpretation. .
IASB Framework. While not a standard, the IASB Framework for the Preparation and Presentation of Financial Statements serves as a guide to resolving accounting issues that are not addressed directly in a standard. Moreover, in the absence of a standard or an interpretation that specifically applies to a transaction, IAS 8 requires that an entity must use its judgement in developing and applying an accounting policy that results in information that is relevant and reliable. In making that judgement, IAS 8.11 requires management to consider the definitions, recognition criteria and measurement concepts for assets, liabilities, income, and expenses in the Framework. The IASB adopted the Framework in April 2001. It had originally been adopted by the IASC in 1989. Currently, the IASB is working on a Project to Revise the Framework.
The term 'IFRSs'. The term International Financial Reporting Standards (IFRSs) has both a narrow and a broad meaning. Narrowly, IFRSs refers to the new numbered series of pronouncements that the IASB is issuing, as distinct from the International Accounting Standards (IASs) series issued by its predecessor. More broadly, IFRSs refers to the entire body of IASB pronouncements, including standards and interpretations approved by the IASB and IASs and SIC interpretations approved by the predecessor International Accounting Standards Committee. [On this website, consistent with IASB policy, we abbreviate International Financial Reporting Standards (plural) as IFRSs and International Accounting Standards (plural) as IASs.]

International Financial Reporting Standards

Preface to International Financial Reporting Standards
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 Assets
IFRS 7 Financial Instruments: Disclosures
IFRS 8 Operating Segments

Framework for the Preparation and Presentation of Financial Statements

Framework for the Preparation and Presentation of Financial Statements

International Accounting Standards

IAS 1 Presentation of Financial Statements
IAS 2 Inventories
IAS 3 Consolidated Financial Statements – Originally issued 1976, effective 1 Jan 1977. Superseded in 1989 by IAS 27 and IAS 28.
IAS 4 Depreciation Accounting – Withdrawn in 1999, replaced by IAS 16, 22, and 38, all of which were issued or revised in 1998.
IAS 5 Information to Be Disclosed in Financial Statements – Originally issued October 1976, effective 1 January 1997. Superseded by IAS 1 in 1997
IAS 6 Accounting Responses to Changing Prices – Superseded by IAS 15, which was withdrawn December 2003
IAS 7 Statement of Cash Flows
IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors
IAS 9 Accounting for Research and Development Activities – Superseded by IAS 38 effective 1.7.99
IAS 10 Events After the Reporting Period
IAS 11 Construction Contracts
IAS 12 Income Taxes
IAS 13 Presentation of Current Assets and Current Liabilities – Superseded by IAS 1.
IAS 14 Segment Reporting
IAS 15 Information Reflecting the Effects of Changing Prices – Withdrawn December 2003
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 22 Business Combinations – Superseded by IFRS 3 effective 31 March 2004
IAS 23 Borrowing Costs
IAS 24 Related Party Disclosures
IAS 25 Accounting for Investments – Superseded by IAS 39 and IAS 40 effective 2001
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 30 Disclosures in the Financial Statements of Banks and Similar Financial Institutions – Superseded by IFRS 7 effective 2007
IAS 31 Interests In Joint Ventures
IAS 32 Financial Instruments: Presentation – Disclosure provisions superseded by IFRS 7 effective 2007
IAS 33 Earnings Per Share
IAS 34 Interim Financial Reporting
IAS 35 Discontinuing Operations – Superseded by IFRS 5 effective 2005
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

renuka kadge (CA Final Student) (148 Points)
Replied 03 April 2009

Originally posted by :C.A Amit Daga

Thank U very much

keep us updating ur doing great Job

An Overview of International Financial Reporting Standards

Standards. International Accounting Standards (IASs) were issued by the IASC from 1973 to 2000. The IASB replaced the IASC in 2001. Since then, the IASB has amended some IASs and has proposed to amend others, has replaced some IASs with new International Financial Reporting Standards (IFRSs), and has adopted or proposed certain new IFRSs on topics for which there was no previous IAS. Through committees, both the IASC and the IASB also have issued Interpretations of Standards.

Compliance with Standards. Financial statements may not be described as complying with IFRSs unless they comply with all of the requirements of each applicable standard and each applicable interpretation. .

IASB Framework. While not a standard, the IASB Framework for the Preparation and Presentation of Financial Statements serves as a guide to resolving accounting issues that are not addressed directly in a standard. Moreover, in the absence of a standard or an interpretation that specifically applies to a transaction, IAS 8 requires that an entity must use its judgement in developing and applying an accounting policy that results in information that is relevant and reliable. In making that judgement, IAS 8.11 requires management to consider the definitions, recognition criteria and measurement concepts for assets, liabilities, income, and expenses in the Framework. The IASB adopted the Framework in April 2001. It had originally been adopted by the IASC in 1989. Currently, the IASB is working on a Project to Revise the Framework.

The term 'IFRSs'. The term International Financial Reporting Standards (IFRSs) has both a narrow and a broad meaning. Narrowly, IFRSs refers to the new numbered series of pronouncements that the IASB is issuing, as distinct from the International Accounting Standards (IASs) series issued by its predecessor. More broadly, IFRSs refers to the entire body of IASB pronouncements, including standards and interpretations approved by the IASB and IASs and SIC interpretations approved by the predecessor International Accounting Standards Committee. [On this website, consistent with IASB policy, we abbreviate International Financial Reporting Standards (plural) as IFRSs and International Accounting Standards (plural) as IASs.]

International Financial Reporting Standards

Preface to International Financial Reporting Standards

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 Assets

IFRS 7 Financial Instruments: Disclosures

IFRS 8 Operating Segments

Framework for the Preparation and Presentation of Financial Statements

Framework for the Preparation and Presentation of Financial Statements

International Accounting Standards

IAS 1 Presentation of Financial Statements

IAS 2 Inventories

IAS 3 Consolidated Financial Statements – Originally issued 1976, effective 1 Jan 1977. Superseded in 1989 by IAS 27 and IAS 28.

IAS 4 Depreciation Accounting – Withdrawn in 1999, replaced by IAS 16, 22, and 38, all of which were issued or revised in 1998.

IAS 5 Information to Be Disclosed in Financial Statements – Originally issued October 1976, effective 1 January 1997. Superseded by IAS 1 in 1997

IAS 6 Accounting Responses to Changing Prices – Superseded by IAS 15, which was withdrawn December 2003

IAS 7 Statement of Cash Flows

IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors

IAS 9 Accounting for Research and Development Activities – Superseded by IAS 38 effective 1.7.99

IAS 10 Events After the Reporting Period

IAS 11 Construction Contracts

IAS 12 Income Taxes

IAS 13 Presentation of Current Assets and Current Liabilities – Superseded by IAS 1.

IAS 14 Segment Reporting

IAS 15 Information Reflecting the Effects of Changing Prices – Withdrawn December 2003

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 22 Business Combinations – Superseded by IFRS 3 effective 31 March 2004

IAS 23 Borrowing Costs

IAS 24 Related Party Disclosures

IAS 25 Accounting for Investments – Superseded by IAS 39 and IAS 40 effective 2001

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 30 Disclosures in the Financial Statements of Banks and Similar Financial Institutions – Superseded by IFRS 7 effective 2007

IAS 31 Interests In Joint Ventures

IAS 32 Financial Instruments: Presentation – Disclosure provisions superseded by IFRS 7 effective 2007

IAS 33 Earnings Per Share

IAS 34 Interim Financial Reporting

IAS 35 Discontinuing Operations – Superseded by IFRS 5 effective 2005

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

renuka kadge (CA Final Student) (148 Points)
Replied 03 April 2009

Thank U very much sir

keep us updating ur doing great Job

CA. Amit Daga (Finance Controller CA. CS. CFA. CIFRS. M.COM. ) (9017 Points)
Replied 03 April 2009

Thanks Renuka.. But yar thanks se nahi chalega.. Please participate ask a question.. share your thoughts.. and try to understand Knowledge of IFRS is very much imp for eveyr one

CA Madhumita Binani (Executive Accounts (SERVICE)) (389 Points)
Replied 03 April 2009

Gr8 job indeed....!!!! even i wud lyk 2 contribute to it as & wen i go thru it....

right now i had been studying IFR 8 Operating Segments and wud lyk to include a ppt which i got from some site.....

find attached...

Regards Madhu

Attached File : 24 ifrs8.ppt downloaded: 200 times

CA. Amit Daga (Finance Controller CA. CS. CFA. CIFRS. M.COM. ) (9017 Points)
Replied 03 April 2009

Thanks Madhu for sharing the file

Ashish Aggarwal (service) (152 Points)
Replied 03 April 2009

HI amit please find attached file on IFRS.

Can you post some queries on practical issues on IFRS which can keep the ball rolling

Attached File : 10 ias 32 39 basic - slidesf.ppt downloaded: 223 times

1 Like

CA. Amit Daga (Finance Controller CA. CS. CFA. CIFRS. M.COM. ) (9017 Points)
Replied 03 April 2009

Good one yar but before practical issues.. i want people will participate because i dont like one way communication

CA Madhumita Binani (Executive Accounts (SERVICE)) (389 Points)
Replied 03 April 2009

dat was a very good ppt ashish.. very clear and understandable..

CA Madhumita Binani (Executive Accounts (SERVICE)) (389 Points)
Replied 03 April 2009

ashish seems u have studied the standard well....

So can u help me on embedded derivative with any material or illustration..

actually i started studying IAS 39 but somehow got stuck in embedded derivative... tis not clear to me...

if u can just help,,,,,,,,,,

Regards Madhu

CA. Amit Daga (Finance Controller CA. CS. CFA. CIFRS. M.COM. ) (9017 Points)
Replied 03 April 2009

Hey Madhu,

When you are transaction with any one in third Currency than that derivative is knows as embeded Derivative i.e India and Australia is dealing in USD. For india local currency is Ruppes and for australia Local currency is australian Dollar and USD is not a currency of both the countries thats why this derivate is knows as Embedded derivative

Best Regards

Amit Daga

CA. Amit Daga (Finance Controller CA. CS. CFA. CIFRS. M.COM. ) (9017 Points)
Replied 03 April 2009

Dear Madhu Thanks for raising a query . I want this kind of particpation from any one. Amit

Ashish Aggarwal (service) (152 Points)
Replied 03 April 2009

As per AS-30 and IAS 39 an embedded derivative is a component of a hybrid (combined) instrument that also includes a non-derivative host contract—with the effect that some of the cash flows of the combined instrument vary in a way similar to a stand-alone derivative.

Eg say there is loan of Rs. 1 crore given to a company @ 5% p.a. which is below the market yield. There is a clause in loan agreement that company shall issue 0.5% of loan to equity shares @ 35% of market price apart from interest and loan repayment at the option of bank.

This option may qualify as embedded derivative in host contract.

As per me FCCB with conversion option may qualify as Embedded contract.

Any comments will be appreciated