What is IFRS?
International Financial Reporting Standards, or “IFRS” in short, is the financial reporting standard that The IFRS Foundation sets out.
The purpose of these standards is evident. It is developed to promote transparency as well as the accountability of financial reports, which is really important for overall stakeholders in general and the financial market specifically.
What is International Accounting Standard?
International Accounting Standards (IAS) are a set of accounting standards that have been developed by the International Accounting Standards Board (IASB). These standards provide guidance on how companies should prepare and present their financial statements to ensure consistency and comparability across different countries and industries.
The IASB is an independent organization that was established in 2001 to develop and promote the use of high-quality, global accounting standards.
The IASB works in collaboration with national accounting standard-setters and other stakeholders to develop and improve accounting standards that are suitable for use in a variety of jurisdictions.
The IAS cover a wide range of accounting topics, including financial statement presentation, revenue recognition, inventory valuation, and consolidation of financial statements.
The standards are updated regularly to reflect changes in accounting practices and emerging issues in the global business environment.
The use of IAS is not mandatory, but many countries and companies have adopted them as their own accounting standards or have converged their national standards with IAS.
The use of IAS can provide several benefits, such as facilitating cross-border investments and improving transparency and comparability of financial information.
In addition to IAS, the IASB has also developed International Financial Reporting Standards (IFRS), which are a set of accounting standards that are used in over 140 countries, including the European Union. IFRS are based on IAS but are more comprehensive and cover a wider range of accounting topics.
When was IFRS introduced to the world?
In 2003, IFRS was introduced to be used for international financial reporting as the result of the effort of the International Accounting Standards Board (IASB), which was founded in 2001.
The following is the list of IFRS and IAS issued by the International Accounting Standard Board (IASB) in 2019. In 2019, there are 16 IFRS and 29 IAS. IAS will replace IFRS once it is finalized and issued by IASB.
List of Active International Financial Reporting Standards in 2022:
|1. FRS 1 First-time adoption of International Financial Reporting Standards|
|2. IFRS 2 Share-based payment|
|3. IFRS 3 Business combinations|
|4. IFRS 4 Insurance contracts|
|5. IFRS 5 Non-current assets held for sale and discontinued operations|
|6. IFRS 6 Exploration for and evaluation of mineral resources|
|7. IFRS 7 Financial instruments: disclosures|
|8. IFRS 8 Operating segments|
|9. IFRS 9 Financial instruments|
|10. IFRS 10 Consolidated financial statements|
|11. IFRS 11 Joint arrangements|
|12. IFRS 12 Disclosure of interests in other entities|
|13. IFRS 13 Fair value measurement|
|14. IFRS 14 Regulatory deferral accounts|
|15. IFRS 15 Revenues from contracts with customers|
|16. IFRS 16 Leases|
|17. IFRS 17 Insurance Contracts|
List of Active International Accounting Standards in 2022
|1. IAS 1 Presentation of financial statements|
|2. IAS 2 Inventories|
|3. IAS 7 Statement of cash flows|
|4. IAS 8 Accounting policies, changes in accounting estimates, and errors|
|5. IAS 10 Events after the reporting period|
|6. IAS 11 Construction contracts|
|7. IAS 12 Income taxes|
|8. IAS 16 Property, plant, and equipment|
|Replaced by IFRS 16|
|Replaced by IFRS 15|
|9. IAS 19 Employee benefits|
|10. IAS 20 Accounting for government grants and disclosure of government assistance|
|11. IAS 21 The effects of changes in foreign exchange rates|
|12. IAS 23 Borrowing costs|
|13. IAS 24 Related party disclosures|
|14. IAS 26 Accounting and reporting by retirement benefit plans|
|15. IAS 27 Consolidated and separate financial statements|
|16. IAS 28 Investments in associates and joint ventures|
|17. IAS 29 Financial reporting in hyperinflationary economies|
|Replace by IFRS 11|
|18. IAS 32 Financial instruments: presentation|
|19. IAS 33 Earnings per share|
|20. IAS 34 Interim financial reporting|
|21. IAS 36 Impairment of assets|
|22. IAS 37 Provisions, contingent liabilities, and contingent assets|
|23. IAS 38 Intangible assets|
|24. IAS 39 Financial instruments: recognition and measurement|
|25. IAS 40 Investment property|
|26. IAS 41 Agriculture|
List of Active IFRIC Interpretations in 2022
|1||IFRIC 1||Changes in Existing Decommissioning, Restoration, and Similar Liabilities|
|2||IFRIC 2||Members’ Shares in Co‑operative Entities and Similar Instruments|
|3||IFRIC 5||Rights to Interests arising from Decommissioning, Restoration, and Environmental Rehabilitation Funds|
|4||IFRIC 6||Liabilities arising from Participating in a Specific Market—Waste Electrical and Electronic Equipment|
|5||IFRIC 7||Applying the Restatement Approach under IAS 29 Financial Reporting in Hyperinflationary Economies|
|6||IFRIC 10||Interim Financial Reporting and Impairment|
|7||IFRIC 12||Service Concession Arrangements|
|8||IFRIC 14||IAS 19 – The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction|
|9||IFRIC 16||Hedges of a Net Investment in a Foreign Operation|
|10||IFRIC 17||Distributions of Non‑cash Assets to Owners|
|11||IFRIC 19||Extinguishing Financial Liabilities with Equity Instruments|
|12||IFRIC 20||Stripping Costs in the Production Phase of a Surface Mine|
|14||IFRIC 22||Foreign Currency Transactions and Advance Consideration|
|15||IFRIC 23||Uncertainty over Income Tax Treatments|
List of Active SIC Interpretations 2022
|1||SIC-7||Introduction of the Euro|
|2||SIC-10||Government Assistance – No Specific Relation to Operating Activities|
|3||SIC-25||Income Taxes—Changes in the Tax Status of an Entity or its Shareholders|
|4||SIC-29||Service Concession Arrangements: Disclosures|
|5||SIC 32||Intangible Assets – Web Site Costs|
List of PRACTICE STATEMENT in 2022
|1||PRACTICE STATEMENT 1||Management Commentary Practice Statement|
|2||PRACTICE STATEMENT 2||Materiality Practice Statement|
What is the Different Between IAS and IFRS?
IAS and IFRS are both sets of accounting standards that have been developed by the International Accounting Standards Board (IASB) to promote consistency and comparability in financial reporting. While IAS and IFRS share many similarities, there are some key differences between the two:
- Scope: IAS cover a narrower range of accounting topics than IFRS. IFRS are more comprehensive and cover a wider range of accounting issues, including financial instruments and employee benefits.
- Applicability: IAS were developed for use by listed companies in the European Union, while IFRS are designed for use by companies around the world. IFRS have been adopted by more than 140 countries, while IAS are used by a smaller number of countries.
- Updates: IAS have not been updated since 2001, while IFRS are updated regularly to reflect changes in accounting practices and emerging issues in the global business environment.
- Terminology: IFRS uses a different terminology than IAS. For example, IFRS uses the term “fair value” while IAS uses the term “net realizable value” to describe the same concept.
- Standard-setting process: The standard-setting process for IAS and IFRS is different. IAS were developed by the IASB’s predecessor, the International Accounting Standards Committee (IASC), while IFRS are developed by the IASB. The IASB has a more formal and transparent process for developing and revising standards than the IASC did.