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Master of Commerce (M.Com-I) Semester II (2012-13)
Submitted by VARSHA CHAWLA
SMT. M.M.K. COLLEGE OF COMMERCE AND ECONOMICS BANDRA (W) MUMBAI-50
INTERNATIONAL FINANCIAL REPORTING STANDARDS
Master of Commerce (M.Com-I) Semester II (2012-13)
Submitted In Partial Fulfillment of the requirements For the Award of Degree of Master of Commerce (Part-I)
By VARSHA CHAWLA
SMT. M.M.K. COLLEGE OF COMMERCE AND ECONOMICS BANDRA (W) MUMBAI-50
SMT. M.M.K. COLLEGE OF COMMERCE AND ECONOMICS BANDRA (W) MUMBAI-50 CERTIFICATE (2012 – 2013) This is to certify that VARSHA CHAWLA of M.com (I) Semester II (2012-13) has successfully completed the project on INTERNATIONAL FINANCIAL REPORTING STANDARDS under the guidance of Mr. BANARJEE. Date:Place:-
(Prof. Mrs. Megha Somani) Course Co-ordinator
(Dr. Ashok Vanjani) Principal
(Prof. Mr. BANARJEE) Project Guide External Examiner
I, Miss. VARSHA CHAWLA the student of M.Com (I) Semester II (2012-13) hereby declare that I have completed the project on INTERNATIONAL FINANCIAL REPORTING STANDARDS successfully.
The information submitted is true and original to the best of my knowledge.
At the beginning, I would like to thank Almighty God for his shower of blessing. The desire of completing this dissertation was given a way by my guide Mr. BANARJEE. I am very much thankful to him for the guidance, support and for sparing his precious time from a busy and hectic schedule.
I am thankful to Dr. ASHOK VANJANI, Principal of Smt. M.M.K. College. My sincere thanks to Prof. MEGHA SOMANI who always motivated and provided a helping hand for conceiving higher education.
I would fail in my duty if I don‘t thank my parents who are pillars of my life. Finally, I would express my gratitude to all those persons who directly and indirectly helped me in completing dissertation.
have guided VARSHA CHAWLA for her project. BANARJEE. Yours faithfully.DECLARATION Date:- I the undersigned Mr. I hereby. she has completed the project on INTERNATIONAL FINANCIAL REPORTING STANDARDS successfully. Thank you. BANARJEE . declared that information provided in this project is true as per the best of my knowledge. Mr.
Introduction IFRS Framework: IASB & FASB Objective of Financial Statements Assumptions in IFRS Qualitative characteristics of Financial Statements Recognition of elements in Financial Statements Measurement of elements in Financial Statements Requirements of IFRS Adoption of IFRS List of IFRS Bibliography Particulars Introduction: .INDEX Sr. No. 11. 1. 10. 5. 8. 3. 2. 4. 6. 7. 9.
understandable. On April 1. The Joint Conceptual Framework project aims to update and refine the existing concepts to reflect the changes in markets. Framework: The Conceptual Framework for Financial Reporting states basic principles for IFRS. the new International Accounting Standards Board took over from the IASC the responsibility for setting International Accounting Standards. IAS were issued between 1973 and 2001 by the Board of the International Accounting Standards Committee (IASC). The IASB and FASB Frameworks are in the process of being updated and converged.International Financial Reporting Standards (IFRS) are designed as a common global language for business affairs so that company accounts are understandable and comparable across international boundaries. reliable and relevant as per the users internal or external. business practices and . During its first meeting the new Board adopted existing IAS and Standing Interpretations Committee standards (SICs). The IASB has continued to develop standards calling the new standards International Financial Reporting Standards (IFRS). IFRS began as an attempt to harmonize accounting across the European Union but the value of harmonization quickly made the concept attractive around the world. 2001. They are a consequence of growing international shareholding and trade and are particularly important for companies that have dealings in several countries. They are sometimes still called by the original name of International Accounting Standards (IAS). The rules to be followed by accountants are to maintain books of accounts which are comparable. They are progressively replacing the many different national accounting standards.
the International Accounting Standards Foundation (IASF) was incorporated as a tax-exempt organization in the US state of Delaware. 2001 as the successor to the International Accounting Standards Committee (IASC). The IASB structure has the following main features: the IFRS Foundation is an independent organization having two main bodies. as well as an IFRS Advisory Council and the IFRS Interpretations Committee (formerly the IFRIC). the Trustees and the IASB. England. 2001. The IASC Foundation Trustees appoint the IASB . On January 25. the International Financial Reporting Standards Foundation was also incorporated as a tax-exempt organization in Delaware. On 1 March 2001.the economic environment that have occurred in the two or more decades since the concepts were first developed. This was the culmination of a restructuring based on the recommendations of the report Recommendations on Shaping IASC for the Future. On February 6. accounting standard-setting body of the IFRS Foundation. the IASB assumed accounting standard-setting responsibilities from its predecessor body. and promoting the use and application of these standards. IASB: The International Accounting Standards Board (IASB) is the independent. The IFRS Foundation is the parent entity of the International Accounting Standards Board (IASB). It is responsible for developing International Financial Reporting Standards (the new name for International Accounting Standards issued after 2001). an independent accounting standard-setter based in London. The IASB was founded on April 1. the International Accounting Standards Committee (IASC). 2001.
exercise oversight and raise the funds needed. or final "IFRIC" Interpretation. exposure draft. former Coopers & Lybrand. former Volvo Group Patrick Finnegan. A unanimous vote is not necessary in order for the publication of a Standard. Its brief is to provide timely guidance on issues that arise in practice. The IASB has 14 Board members (12 are full time members and 2 are part time) each with one vote. New Zealand. At their January 2009 meeting the Trustees of the Foundation concluded the first part of the second Constitution Review. Minister of Finance Ian Mackintosh (Vice-chairman). formerly of the CFA Institute . USA. but the IASB has responsibility for setting International Financial Reporting Standards (international accounting standards). announcing the creation of a Monitoring Board and the expansion of the IASB to 16 members and giving more consideration to the geographical composition of the IASB. Netherlands. They are selected as a group of experts with a mix of experience of standard-setting. The IFRS Interpretations Committee has 14 members. UK. former Minister of Health. AMF (Financial Markets Authority of France) Jan Engström. The Board's 2008 Due Process manual stated that approval by nine of the members is required. UBS Investment Research Phillipe Danjou.members. Chief Accountant Australian Securities and Investments Commission Stephen Cooper. former Arthur Andersen. and academic work. The members (as of July 2011) are: Hans Hoogervorst (Chairman). Sweden. France. preparing and using accounts.
On July 1. David Tweedie. Amaro Luiz de Oliveira Gomes Prabhakar Kalavacherla (‗PK‘) (was an audit partner at KPMG LLP in the San Francisco office) Dr Elke König (Germany) Patricia McConnell. Warren McGregor. David Tweedie had served as the Board's Chairman since its creation in 2001. Gilbert Gélard. The Securities and Exchange Commission (SEC) designated the FASB as the organization responsible for setting accounting standards for public companies in the U. Smith. Mary Barth. USA. Garnett. FASB: The Financial Accounting Standards Board (FASB) is a private. It was created in 1973. . and Tatsumi Yamada. USA. Hans Hoogervorst succeeded David Tweedie as Chairman. China Acc.S. FASB Zhang Wei-Guo. replacing the Committee on Accounting Procedure (CAP) and the Accounting Principles Board (APB) of the American Institute of Certified Public Accountants (AICPA). not-for-profit organization whose primary purpose is to develop generally accepted accounting principles (GAAP) within the United States in the public's interest. former Professor in Shanghai. Standards Committee Former IASB members include James J. Leisenring. Robert P. formerly of Bear Stearns Takatsugu Ochi (Japan) Paul Pacter (US) Darrel Scott (South Africa) John T. China. former Deloitte. 2011.
The SEC has legal authority to establish financial accounting and reporting standards for publicly held companies under the Securities Exchange Act of 1934.The FASB's mission is "to establish and improve standards of financial accounting and reporting for the guidance and education of the public. Keep standards current to reflect changes in methods of doing business and in the economy. Commission policy has been to rely on the private sector for this function to the extent that the private sector demonstrates ability to fulfill the responsibility in the public interest. The FASB is not a governmental body. FASB has five goals: Improve the usefulness of financial reporting by focusing on the primary characteristics of relevance and reliability. financial accounting and reporting standards were established first by the Committee on Accounting Procedure of the American Institute of Certified Public Accountants (1936–1959) and then by the Accounting Principles Board. Promote international convergence of accounting standards concurrent with improving the quality of financial reporting. including issuers. The FASB is part of a structure that is independent of all other business and professional organizations. Throughout its history. and on the qualities of comparability and consistency. and users of financial information. auditors. also a part of the . Consider promptly any significant areas of deficiency in financial reporting that might be improved through standard setting." To achieve this. Before the present structure was created. however. Improve common understanding of the nature and purposes of information in financial reports.
The FASB is subject to oversight by the Financial Accounting Foundation (FAF). Russell G. National Association of State Auditors. This is to ensure the impartiality and independence of the FASB. Leslie F. All members are selected by the FAF. American Institute of Certified Public Accountants 3. The Board of Trustees of the FAF. The board consists of seven full-time members. Buck (2015) c. They are appointed for a five-year term and are eligible for one additional five-year term. Linsmeier (2016) e. Seidman. Thomas J. in turn. Financial Executives International 5. Securities Industry Association The FASB's structure is very different from its predecessors in many ways. Chairman (2013) b. Comptrollers and Treasurers 8. American Accounting Association 2. Institute of Management Accountants 7. Golden (2012) d. Daryl E. which selects the members of the FASB and the Governmental Accounting Standards Board and funds both organizations. Pronouncements of those predecessor bodies remain in force unless amended or superseded by the FASB. The current members are (with current term end dates indicated): a. is selected in part by a group of organizations including: 1. Government Finance Officers Association 6. Harold Schroeder (2015) .AICPA (1959–73). These members are required to sever all ties to previous firms and institutions that they may have served prior to joining the FASB. CFA Institute 4. R.
This document outlined plans to converge IFRS and US GAAP into one set of high quality and compatible .S.f. 2009. If that consensus can be reached. they issue an EITF Issue and FASB doesn't get involved. An EITF Issue is considered just as valid as a FASB pronouncement and is included in the GAAP." The Codification organizes the many pronouncements that constitute U. On Sept. industry. Siegel (2013) g.S. there are approximately 68 staff members. This group includes 15 people from both the private and public sectors coupled with representatives from the FASB and an SEC observer. 18. FASB and IASB met and issued a Memorandum of Understanding. On July 1. academe. the task force considers them and tries to reach a consensus on what course of action to take. "professionals drawn from public accounting. the FASB formed the Emerging Issues Task Force (EITF). Connecticut. searchable format. Marc A. This group was formed in order to provide timely responses to financial issues as they emerged. These staff members are. GAAP into a consistent. a project begun in 1973 to develop a sound theoretical basis for the development of accounting standards in the United States. and government. 2002. declaring it to be "the single source of authoritative nongovernmental U. Smith (2012) In additional to the full-time members. FASB is pursuing a convergence project with the International Accounting Standards Board (IASB) and International Financial Reporting Standards (IFRS). generally accepted accounting principles. plus support personnel. As issues emerge. in Norwalk. The Codification is not to be confused with the FASB's Conceptual Framework. the FASB announced the launch of its Accounting Standards Codification." In 1984. Lawrence W.
FASB has begun moving from the principle of historical cost to fair value.standards. As part of the project. One of the basic principles in accounting is "The Measuring Unit principle: The unit of measure in accounting shall be the base money unit of the most relevant currency. changes in its general purchasing power are not considered sufficiently important to require . This principle also assumes the unit of measure is stable. the FASB issues pronouncements publicly. a fact or a happening which cannot be expressed in terms of money is not recorded in the accounting books. FASB pronouncements: In order to establish accounting principles. every recorded event or transaction is measured in terms of money. it is not acceptable to record such non-quantifiable items as employee skill levels or the quality of customer service. Thus. Using this principle. each addressing general or specific accounting issues. These pronouncements are: Statements of Financial Accounting Standards Statements of Financial Accounting Concepts FASB Interpretations FASB Technical Bulletins EITF Abstracts FASB 11 Concepts Money measurement: The money measurement concept underlines the fact that in accounting. that is.
products. team. also referred to as economic cost is the value of the best alternative that was not chosen in order to pursue the current endeavor —i. Going concern: This accounting principle assumes that a company will continue to exist long enough to carry out its objectives and commitments and will not liquidate in the foreseeable future. cooperative. It is the amount denoted on invoices as the price and recorded in bookkeeping records as an expense or asset cost basis. partnership. the accountant is required to disclose this assessment. or other group with whom it is possible to conduct business. what could have been accomplished with the resources expended in the undertaking. Opportunity cost. department. services.e. The going concern assumption is a fundamental principle in the preparation of financial statements. an entity is ordinarily viewed as continuing in business for the foreseeable future with neither the intention nor the necessity of liquidation..adjustments to the basic financial statements. The going concern principle allows the company to defer some of its prepaid expenses until future accounting periods. If the company's financial situation is such that the accountant believes the company will not be able to continue on. . Cost: In accounting. The inflation which occurs over the passage of time is not considered. labor." Entity: An entity is a person. It represents opportunities forgone. equipment and other items purchased for use by a business or other accounting entity. Under the going concern assumption. corporation. costs are the monetary value of expenditures for supplies. ceasing trading or seeking protection from creditors pursuant to laws or regulations.
with one side of the transaction being called a debit and the other a credit. while another entity may follow April to March as the accounting period. It is the period for which books are balanced and the financial statements are prepared. The International Financial Reporting Standards even allows a period of 52 weeks as an accounting period instead of a proper year. For example one entity may follow the regular calendar year. The name derives from the fact that financial information used to be recorded using pen and ink in paper books – hence "bookkeeping" (whereas now it is recorded mainly in computer systems) and that these books were called journals and ledgers (hence nominal ledger. cost used without qualification often means opportunity cost. i. January to December as the accounting year. Dual aspect: A double-entry bookkeeping system is a set of rules for recording financial information in a financial accounting system in which every transaction or event changes at least two different nominal ledger accounts. etc.) – and that each transaction was entered twice (hence "double-entry"). . However the beginning of the accounting period differs according to the jurisdiction. Accounting period: Accounting period in bookkeeping is the period with reference to which accounting books of any entity are prepared. the accounting period consists of 12 months. Conservation Realization: It is a physical form of a measurement standard.In theoretical economics.e. Generally.
Materiality: Materiality is a concept or convention within auditing and accounting relating to the importance/significance of an amount. It enables the management to draw important conclusions regarding the working of the concern over a longer period. it will be presumed that old methods have been used this time also. If different accounting procedures and processes are used for preparing financial statements of different years then the results will not be comparable because these will be based on different postulates. There should always be a scope for improvement but the changes should be notified in the statements. transaction.Matching: In finance. Matching is the basic operation for clearing. in conformity with an identified financial reporting framework such as . the matching process associates the two sides of a trade coming from two counterparties that negotiated an over-the-counter operation. Both sides have opposite directions: if A is buying a financial instrument from B. The concept of consistency does not mean that no change should be made in accounting procedures. It will enable the readers to analyze information according to new procedures. In the absence of any information regarding the change. Consistency: The convention of consistency means that same accounting principles should be used for preparing financial statements for different periods. The objective of an audit of financial statements is to enable the auditor to express an opinion whether the financial statements are prepared. Matching trades is a necessary practice that reduces risk for settlement or delivery. it is because B sold it. The impact of changes of procedures should be clearly stated. or discrepancy. It allows a comparison in the performance of different periods. in all material respects.
and expenses in the Framework.‖ Objective of financial statements: A financial statement should reflect true and fair view of the business affairs of the organization. IAS 8. liabilities. IFRS authorize three basic accounting models: I. This elevation of the importance of the Framework was added in the 2003 revisions to IAS 8. recognition criteria. and measurement concepts for assets. Current Cost Accounting.Generally Accepted Accounting Principles (GAAP).11 requires management to consider the definitions. they need to reflect true view of the financial position of the organization. management must use its judgement in developing and applying an accounting policy that results in information that is relevant and reliable. And it is very helpful to check the financial position of the business for a specific period. . Role of framework: Deloitte states: ―In the absence of a Standard or an Interpretation that specifically applies to a transaction. As statements are used by various constituents of the society / regulators. income. In making that judgement. The assessment of what is material is a matter of professional judgment. under Physical Capital Maintenance at all levels of inflation and deflation under the Historical Cost paradigm as well as the Capital Maintenance in Units of Constant Purchasing Power paradigm.
e. The following are the three underlying assumptions in IFRS: 1.. Constant Item Purchasing Power Accounting– CIPPA – in terms of a Daily Consumer Price Index or daily rate at all levels of inflation and under the Capital Maintenance in Units of Constant Purchasing Power paradigm and Constant Purchasing Power Accounting – CPPA – (see IAS 29) during hyperinflation under the Historical Cost paradigm. i. i. Financial capital maintenance in nominal monetary units. Financial capital maintenance in units of constant purchasing power. accountants consider changes in the purchasing power of the functional currency up to but excluding 26% per annum for three years in a row (which would be 100% cumulative inflation over three years or hyperinflation as defined in IAS 29) as immaterial or not sufficiently important for them to choose Capital Maintenance in units of constant purchasing power in terms of a Daily Consumer Price Index or daily rate Constant Item Purchasing Power Accounting at all levels of inflation and deflation as authorized in IFRS in the original Framework(1989). i.e.II... Stable measuring unit assumption: Financial capital maintenance in nominal monetary units or traditional Historical cost accounting only under the traditional Historical Cost paradigm. globally implemented Historical cost accounting during low inflation and deflation only under the traditional Historical Cost paradigm III. 2. Par 104 (a) Accountants implementing the stable measuring unit assumption (traditional Historical Cost Accounting) during . Going concern: An entity will continue for the foreseeable future under the Historical Cost paradigm as well as under the Capital Maintenance in Units of Constant Purchasing Power paradigm.e.
fees. Units of constant purchasing power: capital maintenance in units of constant purchasing power at all levels of inflation and deflation in terms of a Daily Consumer Price Index or daily rate (Constant Item Purchasing Power Accounting) only under the Capital Maintenance in Units of Constant Purchasing Power paradigm. It is the implementation of the stable measuring unit assumption.remedies for an indefinite period of time the erosion caused by Historical Cost Accounting of the real values of constant real value non-monetary items never maintained constant as a result of the implementation of the stable measuring unit assumption at all levels of inflation and deflation under HCA. bank charges. Examples include borrowing costs.e. comprehensive income. i. interest paid. Capital maintenance in units of constant purchasing power under Constant Item Purchasing Power Accounting in terms of a Daily Consumer Price Index or daily rate of all constant real value non-monetary items in all entities that at least break even in real value at all levels of inflation and deflation . the total rejection of the stable measuring unit assumption at all levels of inflation and deflation.. royalties. short term employee benefits. traditional HCA which erodes the real value of constant real value non-monetary items never maintained constant in a double entry basic accounting model.ceteris paribus . Constant real value non-monetary items are non-monetary items with constant real values over time whose values within an entity are not generally determined in a market on a daily basis. . It is not inflation doing the eroding.annual inflation of 25% for 3 years in a row would erode 100% of the real value of all constant real value non-monetary items not maintained constant under the Historical Cost paradigm. 3. interest received. Inflation and deflation have no effect on the real value of non-monetary items.e. i.
home loans. retained earnings. car loans. Examples of items with an underlying monetary nature which are substitutes of money held include the capital amount of: bank loans. The constant item gain or loss is calculated when current period constant items are not measured in units of constant purchasing power. all other non-monetary payables. notes payable. credit card loans. revaluation surpluses. all taxes payable. trade creditors. Treasury Bills. Historic and current period monetary items are required to be inflation-adjusted on a daily basis in terms of a daily index or rate under the Capital Maintenance in Units of Constant Purchasing Power paradigm. dividends receivable. provisions. retained losses. issued share capital. all accounted profits and losses. all other items in shareholders´ equity. dividends payable. trade debtors. capital reserves. share discount accounts. etc. salaries. all taxes receivable. The net monetary loss or gain as defined in IAS 29 is required to be calculated and accounted when they are not inflation-adjusted on a daily basis during the current financial period. bank savings. share premium accounts.pensions. deferred tax liabilities. all other income statement items. all other non-monetary receivables. when these items are not in the form of money held. etc. Examples of units of money held are bank notes and coins of the fiat currency created within an economy by means of fractional reserve banking. consumer loans. student loans. wages. commercial and government bonds. all capital and money market investments. . deferred tax assets. Monetary items are units of money held and items with an underlying monetary nature which are substitutes for units of money held. All constant real value non-monetary items are always and everywhere measured in units of constant purchasing power at all levels of inflation and deflation under CIPPA in terms of a Daily CPI or daily rate under the Capital Maintenance in Units of Constant Purchasing Power paradigm. notes receivable. rentals.
high inflation and deflation and (b) in terms of a relatively stable foreign currency parallel rate (normally the US Dollar daily parallel rate) or a Brazilian-style Unidade Real de Valor daily index . equipment. foreign exchange. during low inflation. Current period variable real value non-monetary items are required to be measured on a daily basis in terms of IFRS excluding the stable measuring unit assumption and the cost model in the valuation of property. intellectual property.g. then they as well as historic variable real value non-monetary items are required to be updated daily in terms of a daily rate as indicated above.Inflation-adjusting the total money supply (excluding bank notes and coins of the fiat functional currency created by means of fractional reserve banking within an economy) in terms of a daily index or rate under complete coordination would result in zero cost of inflation (not zero inflation) in only the entire money supply (as qualified) in an economy. Variable real value non-monetary items are non-monetary items with variable real values over time. goodwill. When they are not valued on a daily basis. plant. etc. Examples include quoted and unquoted shares. Under the Capital Maintenance in Units of Constant Purchasing Power paradigm daily measurement is required of all items in terms of (a) A Daily Consumer Price Index or monetized daily indexed unit of account. e. raw material. inventory. finished goods. They are constant real value nonmonetary items once they are accounted. property. equipment and investment property after recognition under the Capital Maintenance in Units of Constant Purchasing Power paradigm. plant. All accounted losses and profits are constant real value non-monetary items. the Unidad de Fomento in Chile. Current period impairment losses in variable real value non-monetary items are required to be treated in terms of IFRS.
Under the units of constant purchasing power model equity is the constant real value of shareholders´ equity. i.e. Equity: Equity is the residual interest in the assets of the enterprise after deducting all the liabilities under the Historical Cost Accounting model. Liability: A liability is a present obligation of the enterprise arising from the past events. iii. ii. Asset: An asset is a resource controlled by the enterprise as a result of past events from which future economic benefits are expected to flow to the enterprise. Qualitative characteristics of financial statements: Qualitative characteristics of financial statements include: Relevance (Materiality) Faithful representation Enhancing qualitative characteristics include: Comparability Verifiability Timeliness Understandability Elements of financial statements (IAS 1 article 10) The financial position of an enterprise is primarily provided in the Statement of Financial Position.e. the settlement of which is expected to result in an outflow from the enterprise' resources.during hyperinflation. Hyperinflation is defined in IAS 29 as cumulative inflation being equal to or approaching 100 per cent over three years. 26 per cent annual inflation for three years in a row.. assets. Equity is also known as owner's equity. The elements include: i. . i.
or depletions of assets or incurrences of liabilities that result in decreases in equity.e. Revenues and expenses are measured in nominal monetary units under the Historical Cost Accounting model and in units of constant purchasing power (inflation-adjusted) under the Units of Constant Purchasing Power model. it does not include the contributions made by the equity participants. it is assumed that the monetary unit of account (the functional . The elements of an income statement or the elements that measure the financial performance are as follows: Revenues: increases in economic benefit during an accounting period in the form of inflows or enhancements of assets. The resource can be reliably measured – otherwise the stable measuring unit assumption is applied under the Historical Cost Accounting model: i. It is probable future economic benefit will flow to or from an entity. i. proprietor. Expenses: decreases in economic benefits during an accounting period in the form of outflows. or decrease of liabilities that result in increases in equity.. partners and shareholders.The financial performance of an enterprise is primarily provided in the Statement of Comprehensive Income (income statement or profit and loss account). However. Statement of Changes in Equity Statement of Cash Flows Notes to the Financial Statements Recognition of elements of financial statements: An item is recognized in the financial statements when: a.e. b.
. the stable measuring unit assumption is applied to items such as issued share capital.e. all items in the Statement of Comprehensive Income (except salaries. i. Accounts Receivables.currency) is perfectly stable (zero inflation or deflation). Par. i. retained earnings. which are inflation-adjusted annually). and items are stated at their original nominal Historical Cost from any prior date: 1 month. all other items in shareholders´ equity. This involves the selection of the particular basis of measurement. Under the Units of Constant Purchasing Power model. c. wages. Measurement of the elements of financial statements: Par. 1 year. etc. all items in the Statement of Comprehensive Income. etc. 100: A number of different measurement bases are employed to different degrees and in varying combinations in financial statements. etc.e. Accounts Payables. capital reserves. or in some circumstances (for example. it is simply assumed that there is no inflation or deflation ever. all non-monetary receivables. rentals. all items in shareholders´ equity. They include the following: (a) Historical cost: Assets are recorded at the amount of cash or cash equivalents paid or the fair value of the consideration given to acquire them at the time of their acquisition. Liabilities are recorded at the amount of proceeds received in exchange for the obligation. 99: Measurement is the process of determining the monetary amounts at which the elements of the financial statements are to be recognized and carried in the balance sheet and income statement. all non-monetary payables. all constant real value non-monetary items are inflation-adjusted during low inflation and deflation. 10 or 100 or 200 or more years before. provisions. income .
Par. Concepts of capital and capital maintenance: A major difference between US GAAP and IFRS is the fact that three fundamentally different concepts of capital and capital maintenance are authorized in IFRS while US GAAP only authorize two capital and capital maintenance concepts during low inflation and deflation: (1) physical capital maintenance and (2) financial capital maintenance in nominal monetary units . some entities use the current cost basis as a response to the inability of the historical cost accounting model to deal with the effects of changing prices of non-monetary assets. Assets are carried at the present discounted value of the future net cash inflows that the item is expected to generate in the normal course of business. Liabilities are carried at the undiscounted amount of cash or cash equivalents that would be required to settle the obligation currently.taxes). Furthermore. at the amounts of cash or cash equivalents expected to be paid to satisfy the liability in the normal course of business. (b) Current cost: Assets are carried at the amount of cash or cash equivalents that would have to be paid if the same or an equivalent asset was acquired currently. Liabilities are carried at the present discounted value of the future net cash outflows that are expected to be required to settle the liabilities in the normal course of business.101: The measurement basis most commonly adopted by entities in preparing their financial statements is historical cost. For example. This is usually combined with other measurement bases. inventories are usually carried at the lower of cost and net realizable value. (c) Realizable (settlement) value: Assets are carried at the amount of cash or cash equivalents that could currently be obtained by selling the asset in an orderly disposal. marketable securities may be carried at market value and pension liabilities are carried at their present value.
units of output per day. 103: The selection of the appropriate concept of capital by an entity should be based on the needs of the users of its financial statements. a physical concept of capital should be used. Concepts of capital: Par. capital is regarded as the productive capacity of the entity based on. The concept chosen indicates the goal to be attained in determining profit. If. Par. namely. however. Par 104 (a) in 1989. financial capital maintenance in units of constant purchasing power as authorized in IFRS in the Framework. a financial concept of capital should be adopted if the users of financial statements are primarily concerned with the maintenance of nominal invested capital or the purchasing power of invested capital. Under a financial concept of capital. for example. even though there may be some measurement difficulties in making the concept operational. Thus. 102: A financial concept of capital is adopted by most entities in preparing their financial statements. the main concern of users is with the operating capability of the entity.(traditional Historical Cost Accounting) as stated in Par 45 to 48 in the FASB Conceptual Statement Nº 5. US GAAP does not recognize the third concept of capital and capital maintenance during low inflation and deflation. Under this concept a profit is earned only if the financial (or money) amount of the net assets at the end of the period . such as invested money or invested purchasing power. 104: The concepts of capital in paragraph 102 give rise to the following two concepts of capital maintenance: (a) Financial capital maintenance. Under a physical concept of capital. such as operating capability. capital is synonymous with the net assets or equity of the entity. Concepts of capital maintenance and the determination of profit: Par.
after excluding any distributions to. (C) Constant purchasing power financial capital. (B) Nominal financial capital. (2) Financial capital maintenance in nominal monetary units (Historical cost accounting): authorized by IFRS but not prescribed—optional during low inflation and deflation. See Par 104 (a) Historical cost accounting. See Par 106. See paragraph 104. Financial capital maintenance in nominal monetary units per se during inflation and deflation is a fallacy: it is impossible to maintain the real value of financial . owners during the period. The concepts of capital in paragraph 102 give rise to the following three concepts of capital maintenance during low inflation and deflation: (1) Physical capital maintenance: optional during low inflation and deflation. (b) Physical capital maintenance. owners during the period.exceeds the financial (or money) amount of net assets at the beginning of the period. and contributions from. Under this concept a profit is earned only if the physical productive capacity (or operating capability) of the entity (or the resources or funds needed to achieve that capacity) at the end of the period exceeds the physical productive capacity at the beginning of the period. Current Cost Accounting model prescribed by IFRS. Financial capital maintenance can be measured in either nominal monetary units or units of constant purchasing power. after excluding any distributions to. and contributions from. The concepts of capital in paragraph 102 give rise to the following three concepts of capital during low inflation and deflation: (A) Physical capital. See paragraph 102&103. See paragraph 104.
only inflows of assets in excess of amounts needed to maintain capital may be regarded as profit and therefore as a return on capital. See Par 104(a). It provides the linkage between the concepts of capital and the concepts of profit because it provides the point of reference by which profit is measured. where . Par. Hence. profit is the residual amount that remains after expenses (including capital maintenance adjustments. (3) Financial capital maintenance in units of constant purchasing power (Constant Item Purchasing Power Accounting): authorized by IFRS but not prescribed—optional during low inflation and deflation. Only financial capital maintenance in units of constant purchasing power (CIPPA) per se can automatically maintain the real value of financial capital constant at all levels of inflation and deflation in all entities that at least break even in real value—ceteris paribus—for an indefinite period of time.e. The calculation and accounting of net monetary losses and gains during low inflation and deflation have thus been authorized in IFRS since 1989. This would happen whether these entities own re-valuable fixed assets or not and without the requirement of more capital or additional retained profits to simply maintain the existing constant real value of existing shareholders´ equity constant. 105: The concept of capital maintenance is concerned with how an entity defines the capital that it seeks to maintain. Financial capital maintenance in units of constant purchasing power requires the calculation and accounting of net monetary losses and gains from holding monetary items during low inflation and deflation. it is a prerequisite for distinguishing between an entity's return on capital and its return of capital.capital constant with measurement in nominal monetary units per se during inflation and deflation. the restatement of Historical Cost or Current Cost period-end financial statements in terms of the period-end monthly published Consumer Price Index. IAS 29 is prescribed during hyperinflation: i.
only that part of the increase in the prices of assets that exceeds the increase in the general level of prices is regarded as profit.appropriate) have been deducted from income. The rest of the increase is treated as a capital maintenance adjustment and. Thus. conceptually. does not require the use of a particular basis of measurement. an entity has maintained its capital if it has as much capital at the end of the period as it had at the beginning of the period. until the assets are disposed of in an exchange transaction. profit represents the increase in invested purchasing power over the period. If expenses exceed income the residual amount is a loss.107: The principal difference between the two concepts of capital maintenance is the treatment of the effects of changes in the prices of assets and liabilities of the entity. The financial capital maintenance concept. increases in the prices of assets held over the period. Par. Thus. hence. profit represents the . however. They may not be recognized as such. as part of equity. however. Par. 106: The physical capital maintenance concept requires the adoption of the current cost basis of measurement. Any amount over and above that required to maintain the capital at the beginning of the period is profit. 108: Under the concept of financial capital maintenance where capital is defined in terms of nominal monetary units. When the concept of financial capital maintenance is defined in terms of constant purchasing power units. Par. Par. Selection of the basis under this concept is dependent on the type of financial capital that the entity is seeking to maintain. 109: Under the concept of physical capital maintenance when capital is defined in terms of the physical productive capacity. In general terms. profits. profit represents the increase in nominal money capital over the period. conventionally referred to as holding gains are.
management must seek a balance between relevance and reliability. which reconciles Profit or Loss on the Income statement to total comprehensive income a Statement of Changes in Equity (SOCE) a Cash Flow Statement or Statement of Cash Flows notes. hence. including a summary of the significant accounting policies Comparative information is required for the prior reporting period (IAS 1. 110: The selection of the measurement bases and concept of capital maintenance will determine the accounting model used in the preparation of the financial statements. as in other areas.increase in that capital over the period. This intention will. This Framework is applicable to a range of accounting models and provides guidance on preparing and presenting the financial statements constructed under the chosen model. An entity preparing IFRS accounts for the first time must apply IFRS in full for . be reviewed in the light of world developments. At the present time.8): a Statement of Financial Position a Statement of Comprehensive Income separate statements comprising an Income Statement and separately a Statement of Comprehensive Income.36). Par. such as for those entities reporting in the currency of a hyperinflationary economy. they are treated as capital maintenance adjustments that are part of equity and not as profit. it is not the intention of the Board of IASC to prescribe a particular model other than in exceptional circumstances. however. All price changes affecting the assets and liabilities of the entity are viewed as changes in the measurement of the physical productive capacity of the entity. Requirements of IFRS: IFRS financial statements consist of (IAS1. Different accounting models exhibit different degrees of relevance and reliability and.
including all of Europe. Singapore and Turkey. listed companies. India. The main changes from the previous version are to require that an entity must: a. Present all non-owner changes in equity (that is. Russia. Components of comprehensive income may not be presented in the Statement of changes in equity. South Africa. more than 113 countries around the world. c. the IASB issued a revised IAS 1 Presentation of Financial Statements. Adoption of IFRS: IFRS are used in many parts of the world.the current and comparative period although there are transitional exemptions (IFRS1. . including the European Union.7). Early adoption is permitted. Australia. GCC countries. Hong Kong. Pakistan. On 6 September 2007. Malaysia. Make necessary disclosure by the way of a note. Present a statement of financial position (balance sheet) as at the beginning of the earliest comparative period in a complete set of financial statements when the entity applies the new standard. Securities and Exchange Commission. The revised IAS 1 is effective for annual periods beginning on or after 1 January 2009. 'comprehensive income‘) either in one Statement of comprehensive income or in two statements (a separate income statement and a statement of comprehensive income).S. Present a statement of cash flow. b. according to the U. d. As of August 2008. currently require or permit IFRS reporting and 85 require IFRS reporting for all domestic.
as investors will be more willing to provide financing. along with a number of 'domestic' standards and interpretations.It is generally expected that IFRS adoption worldwide will be beneficial to investors and other users of financial statements. Australia. It must be acknowledged. However. Ball has expressed some skepticism of the overall cost of the international standard. numbering IFRS standards as AASB 1–8 and IAS standards as AASB 101–141. however. 30 June 2006 was the first report prepared under IFRS-equivalent standards for June year ends). Companies are also expected to benefit. To this end. These pronouncements replaced previous Australian generally accepted accounting principles with effect from annual reporting periods beginning on or after 1 January 2005 (i. He also expressed concerns about the fair value emphasis of IFRS and the influence of accountants from non-common-law regions. Australian equivalents to SIC and IFRIC Interpretations have also been issued. that IFRS and primarily IAS have been part and parcel of accounting standard package in the developing world for many . by reducing the costs of comparing alternative investments and increasing the quality of information. Australia: The Australian Accounting Standards Board (AASB) has issued 'Australian equivalents to IFRS' (A-IFRS). was one of the initial adopters of IFRS for domestic purposes (in the developed world). Companies that are involved in foreign activities and investing benefit from the switch due to the increased comparability of a set accounting standard. along with Europe and a few other countries.e. Companies that have high levels of international activities are among the group that would benefit from a switch to IFRS. Ray J. and the regional differences in accounting could become obscured behind a label. where losses have been recognized in a less timely manner. he argues that the enforcement of the standards could be lax.
years since the relevant accounting bodies were more open to adoption of international standards for many reasons including that of capability. introducing additional disclosures or implementing requirements for not-for-profit entities. This includes public companies and other "profit-oriented enterprises that are responsible to large or diverse groups of shareholders. The AASB continues to mirror changes made by the IASB as local pronouncements. the AASB has issued so-called 'Amending Standards' to reverse some of the initial changes made to the IFRS text for local terminology differences. which includes representatives of member state governments and is advised by a group of accounting experts . There are some calls for Australia to simply adopt IFRS without 'Australianising' them and this has resulted in the AASB itself looking at alternative ways of adopting IFRS in Australia Canada: The use of IFRS became a requirement for Canadian publicly accountable profit-oriented enterprises for financial periods beginning on or after 1 January 2011. however these generally have the effect of eliminating an option under IFRS. standards must be endorsed by the Accounting Regulatory Committee (ARC). rather than departing from IFRS for Australian entities. Accordingly. The AASB has made certain amendments to the IASB pronouncements in making A-IFRS. In addition." European Union All listed EU companies have been required to use IFRS since 2005. In order to be approved for use in the EU. for-profit entities that prepare financial statements in accordance with A-IFRS are able to make an unreserved statement of compliance with IFRS. over recent years. to reinstate options and eliminate some Australian-specific disclosure.
Parts of the standard IAS 39: Financial Instruments: Recognition and Measurement were not originally approved by the ARC. Phase wise applicability details for different companies in India: Phase 1: Opening balance sheet as at 1 April 2011* i. IAS 39 was subsequently amended. removing the option to record financial liabilities at fair value.known as the European Financial Reporting Advisory Group. As a result IFRS as applied in the EU may differ from that used elsewhere. The ICAI has also stated that IFRS will be applied to companies above INR 1000 crore (INR 10 billion) from April 2011. and the ARC approved the amended version. The World Bank Centre for Financial Reporting Reform is working with countries in the ECA region to facilitate the adoption of IFRS and IFRS for SMEs. This will be done by revising existing accounting standards to make them compatible with IFRS. Companies which are part of BSE Sensex – BSE 30 a. Companies which are part of NSE Index – Nifty 50 ii. India: The Institute of Chartered Accountants of India (ICAI) has announced that IFRS will be mandatory in India for financial statements for the periods beginning on or after 1 April 2012. Reserve Bank of India has stated that financial statements of banks need to be IFRS-compliant for periods beginning on or after 1 April 2011. Companies whose shares or other securities are listed on a stock exchange outside India . The IASB is working with the EU to find an acceptable way to remove a remaining anomaly in respect of hedge accounting.
the Ministry of Corporate Affairs issued the road map for transition to IFRS. whether listed or not. In the first phase. lack of preparedness of Indian companies has led to the decision to defer the adoption of IFRS for a year. having net worth of more than INR 1000 crore (INR 10 billion) Phase 2: Opening balance sheet as at 1 April 2012* Companies not covered in phase 1 and having net worth exceeding INR 500 crore (INR 5 billion) Phase 3: Opening balance sheet as at 1 April 2014* Listed companies not covered in the earlier phases * If the financial year of a company commences at a date other than 1 April. but it will undermine India's position. and companies whose securities are listed on stock exchanges outside India and all other companies having net worth of INR 1000 crore will prepare and present financial statements using Indian Accounting Standards converged with IFRS. 2011. 2010. then it shall prepare its opening balance sheet at the commencement of immediately following financial year. Presumably. the transition date was fixed at April 1. those companies will convert their first balance sheet as at April 1. This . Companies. The press note does not clarify whether the full set of financial statements for the year 2011–12 will be prepared by applying accounting standards convergent with IFRS. 2010. According to the press note issued by the government. This implies that the transition date will be April 1. It is clear that India has deferred transition to IFRS by a year. The deferment of the transition may make companies happy. 2011.b. According to the earlier plan. companies included in Nifty 50 or BSE Sensex. applying accounting standards convergent with IFRS if the accounting year ends on March 31. On January 22.
having net worth of more than INR 500 crore will convert their opening balance sheet as at April 1. 2014. Listed companies having net worth of INR 500 crore or less will convert their opening balance sheet as at April 1. could not prepare itself for the transition to IFRS over last four years. Moreover.is unfortunate that India. 2013. this will happen only if a significant number of large companies engage Indian accounting firms to provide them support in their transition to IFRS. Therefore. Public sector companies should take the lead and the Institute of Chartered Accountants of India (ICAI) should develop a clear strategy to diffuse the learning. which will comply with Indian accounting standards convergent with IFRS in the first phase. it does not include the value of intangible assets. This is not the ideal unit to measure the size of a company. most large companies. Market capitalization is a better . Transition in phases Companies. as most assets and liabilities are measured at historical cost. If. choose one of the international firms. Un-listed companies having net worth of Rs. which might be modified from time to time. Indian accounting firms and smaller companies will not benefit from the learning in the first phase of the transition to IFRS. the net worth does not reflect the current value of those assets and liabilities. Transition to IFRS in phases is a smart move. Net worth in the balance sheet is determined by accounting principles and methods. which boasts for its IT and accounting skills. But that might be the ground reality. However. Therefore. it is for the benefit of the country that each company makes judicious choice of the accounting firm as its partner without limiting its choice to international accounting firms. Size of companies the government has decided to measure the size of companies in terms of net worth. 500 crore or less will continue to apply existing accounting standards. It is likely that international firms will protect their learning to retain their competitive advantage. The transition cost for smaller companies will be much lower because large companies will bear the initial cost of learning and smaller companies will not be required to reinvent the wheel. whether listed or not.
IFRS is currently required for all consolidated and standalone financial statements. of high quality and can be compared to those of the European Union. Japan: The minister for Financial Services in Japan announced in late June 2011 that mandatory application of the IFRS should not take place from fiscal yearending March 2015. The government should provide that choice. however. might prefer to use Indian accounting standards convergent with IFRS earlier than required under the road map presented by the government. Financial statements for banks in Montenegro are. IFRS for SMEs is not currently applied in Montenegro. which are large in terms of fundamental value or which intend to attract foreign capital. and because of this Montenegro applies the Serbian translation from 2010. Montenegro: Montenegro gained independence from Serbia in 2006. no Montenegrin translation of IFRS exists. Montenegro does not have a national GAAP.measure of the size of a company. GAAP beyond the fiscal year ending March 31. Foreign companies listed on Montenegro's two stock exchanges (Montenegro Stock Exchange and NEX Stock Exchange) are also required to apply IFRS in their financial statements. Some companies.S. . Its accounting standard setter is the Institute of Accountants and Auditors of Montenegro (IAAM). five to seven years should be required for preparation if mandatory application is decided. In 2005. 2016. enforcement is not effective except in the banking sector. IAAM adopted a revised version of the 2002 "Law on Accounting and Auditing" which authorized the use of IFRS for all entities. Currently. and to permit the use of U. generally. But it is difficult to estimate market capitalization or fundamental value of unlisted companies. This might be the reason that the government has decided to use 'net worth' to measure size of companies.
consultations with the IASB are made to ensure consistency of core principles. Singapore closely models its Financial Reporting Standards (FRS) according to the IFRS. This IFRS is being considered for adoption for all companies other than banks and DFIs. This IFRS will be effective for the annual periods beginning on or after 1 January 2013. with appropriate changes made to suit the Singapore context. Russia: The government of Russia has been implementing a program to harmonize its national accounting standards with IFRS since 1998. IFRS-9: Under consideration of the relevant Committee of the Institutes (ICAP & ICMAP). Singapore: In Singapore the Accounting Standards Committee (ASC) is in charge of standard setting. Despite these efforts essential differences between Russian accounting standards and IFRS remain. Before a standard is enacted. Since then twenty new accounting standards were issued by the Ministry of Finance of the Russian Federation aiming to align accounting practices with IFRS. Full transition to IFRS is delayed.Pakistan: All listed companies must follow all issued IAS/IFRS except the following: IAS 39 and IAS 40: Implementation of these standards has been held in abeyance by State Bank of Pakistan for Banks and DFIs IFRS-1: Effective for the annual periods beginning on or after January 1. . 2004. Since 2004 all commercial banks have been obliged to prepare financial statements in accordance with both Russian accounting standards and IFRS.
although there may be a delay between issuance of an IFRS and the equivalent SA Statement of GAAP (can affect voluntary early adoption). Alternatively. the company may choose to apply full South African Statements of GAAP or IFRS. 2013. credit card companies and insurance intermediaries: A. The IFRS for SMEs may be applied by 'limited interest companies'. if they do not have public accountability (that is. not listed and not a financial institution).South Africa: All companies listed on the Johannesburg Stock Exchange have been required to comply with the requirements of International Financial Reporting Standards since 1 January 2005. Taiwan: Adoption scope and timetable: (1) Phase I companies: listed companies and financial institutions supervised by the FSC. 2012. or have a market capitalization of greater than NT$10 billion. or have registered an overseas securities issuance with the FSC. Early optional adoption: Firms that have already issued securities overseas. They will be required to prepare financial statements in accordance with Taiwan-IFRS starting from January 1. they are not 'widely held'). B. will be permitted to prepare additional consolidated financial statements1 in accordance with Taiwan-IFRS starting from January 1. as defined in the South African Corporate Laws Amendment Act of 2006 (that is. If a company without subsidiaries is not required . except for credit cooperatives. South African Statements of GAAP are entirely consistent with IFRS.
credit cooperatives and credit card companies: A. They will be permitted to apply Taiwan-IFRS starting from January. Phase I companies: (A) They will be required to disclose the adoption plan. Year Work Plan 2008 Establishment of IFRS Taskforce 2009~2011 Acquisition of authorization to translate IFRS . and the impact of adoption. in 2011 interim and annual financial statements commencing on the decision date. b. They should also disclose the related information from 2 years prior to adoption. 2019 B. and in 2012 interim and annual financial statements. (3) Pre-disclosure about the IFRS adoption plan. and the impact of adoption. and the impact of adoption to prepare properly for IFRS adoption. 1. and in 2011 interim and annual financial statements. (B) Early optional adoption: a. Phase II companies will be required to disclose the related information from 2 years prior to adoption. 2013. Companies adopting IFRS early will be required to disclose the adoption plan.to prepare consolidated financial statements. in 2010 annual financial statements. and the impact of adoption. B. They will be required to prepare financial statements in accordance with Taiwan-IFRS starting from January 1. as stated above. (2) Phase II companies: unlisted public companies. in 2011 annual financial statements. 2011. If a company opts for early adoption of Taiwan-IFRS after January 1. domestic companies should propose an IFRS adoption plan and establish a specific taskforce. it will be required to disclose the adoption plan. it will be permitted to prepare additional individual financial statements on the above conditions. as follows: A.
and resolution thereof Completion of amendments to the related regulations and supervisory mechanisms Enhancement of the related publicity and training activities 2013 Application of IFRS required for Phase I companies. improvement of their international image. and resolution thereof Proposal for modification of the related regulations and supervisory mechanisms Enhancement of related publicity and training activities 2012 IFRS application permitted for Phase I companies Study on possible IFRS implementation problems. and of the impact 2015 Applications of IFRS required for Phase II companies Expected benefits (1) More efficient formulation of domestic accounting standards. Translation. . and of the impact 2014 Follow-up analysis of the status of IFRS adoption. and permitted for Phase II companies Follow-up analysis of the status of IFRS adoption. review. and enhancement of the global rankings and international competitiveness of our local capital markets. and issuance of IFRS Analysis of possible IFRS implementation problems.
Since 2005 Turkish companies listed in Istanbul Stock Exchange are required to prepare IFRS reports.(2) Better comparability between the financial statements of local and foreign companies. the standard-setting body of the IFRS Foundation. and . Interpretations originated from the International Financial Reporting Interpretations Committee (IFRICs). It includes accounting standards either developed or adopted by the International Accounting Standards Board (IASB). Turkey: Turkish Accounting Standards Board translated IFRS into Turkish in 2005. use of a single set of accounting standards will reduce the cost of account conversions and improve corporate efficiency. (3) No need for restatement of financial statements when local companies wish to issue overseas securities. resulting in reduction in the cost of raising capital overseas. as set out by the IFRS Foundation. The IFRS include: International Financial Reporting Standards (IFRSs)—developed by the IASB. (4) For local companies with investments overseas. International Accounting Standards (IASs)—adopted by the IASB. List of International Financial Reporting Standards: This is a list of the International Financial Reporting Standards (IFRSs) and official interpretations.
The list contains all standards and interpretations regardless whether they have been suspended. List of Reporting Standards and International Accounting Standards Originally issued Fully withdrawn Superseded by N° Title Effective Disclosure of Accounting Policies (1975) IAS 1 Presentation of Financial Statements (1997) Valuation and Presentation of Inventories in the IAS 2 Context of the Historical Cost System (1975) Inventories (1993) Consolidated Financial Statements January 1. 1998 IAS 1 . 1977 July 1. 1990 IAS 27 and IAS 28 1975 January 1. Standing Interpretations Committee (SICs). 1976 1975 January 1. 1999 IAS 36 Information to Be IAS 5 Disclosed in Financial Statements 1976 January 1. 1977 January 1. 1975 IAS 3 1976 IAS 4 Depreciation Accounting 1976 July 1. 1977 January 1.
Changes in Accounting Estimates and Errors (2003) 1978 January 1.N° Title Originally issued Effective Fully withdrawn January 1. 1979 IAS 8 Errors and Changes in Accounting Policies (1993) Accounting Policies. July 1. 1978 IAS 15 IAS 7 CashFlow Statements (1992) Statement of Cash Flows (2007) Unusual and Prior Period Items and Changes in Accounting Policies (1978) Net Profit or Loss for the Period. 1979 IAS 9 Accounting for Research and Development 1978 January 1. 1999 IAS 38 . 1983 Superseded by IAS 6 Accounting Responses to Changing Prices Statement of Changes in Financial Position (1977) 1977 January 1. Fundamental 1977 January 1.
1981 January 1. 2009 IFRS 8 . 1998 IAS 1 IAS 14 1981 January 1. 1983 January 1. 1981 July 1. 1980 January 1.N° Title Originally issued Effective Fully withdrawn Superseded by Activities Contingencies and Events Occurring After the Balance Sheet Date (1978) IAS 10 Events After the Balance Sheet Date (1999) Events after the Reporting Period (2007) Accounting for Construction Contracts IAS 11 (1979) Construction Contracts (1993) Accounting for Taxes on IAS 12 Income (1979) Income Taxes (1996) Presentation of Current IAS 13 Assets and Current Liabilities Reporting Financial Information by Segment 1979 1979 1979 1978 1980 January 1. 1980 January 1.
1984 1982 January 1. 1984 1982 January 1. Plant and Equipment (1993) Accounting for Leases IAS 17 (1982) Leases (1997) Revenue Recognition IAS 18 (1982) Revenue (1993) Accounting for Retirement Benefits in Financial IAS 19 Statements of Employers (1983) Retirement Benefit Costs 1983 January 1. Plant and Equipment IAS 16 (1982) Property. 1983 January 1.N° Title Originally issued Effective Fully withdrawn Superseded by (1981) Segment reporting (1997) Information Reflecting the Effects of Changing Prices Accounting for Property. 1985 1982 January 1. 2005 IAS 15 1981 N/A . 1983 January 1.
N° Title Originally issued Effective Fully withdrawn Superseded by (1993) Employee Benefits (1998) Accounting for IAS 20 Government Grants and Disclosure of Government Assistance Accounting for the Effects of Changes in Foreign Exchange Rates (1983) IAS 21 The Effects of Changes in Foreign Exchange Rates (1993) Accounting for Business Combinations (1983) IAS 22 Business Combinations (1993) Capitalisation of IAS 23 Borrowing Costs (1984) Borrowing Costs (1993) January 1. 2004 IFRS 3 1983 January 1. 1986 1984 January 1. 1985 April 1. 1986 1983 January 1. 1984 IAS 24 Related Party Disclosures 1984 . 1985 1983 January 1.
1988 1989 January 1. 2001 Superseded by IAS 39 and IAS 40 IAS 25 Accounting for Investments Accounting and Reporting 1986 January 1. 1987 IAS 26 by Retirement Benefit Plans Consolidated Financial Statements and Accounting for Investments in Subsidiaries (1989) IAS 27 Consolidated and Separate Financial Statements (2003) Separate Financial Statements (2011) Accounting for Investments in Associates (1989) 1987 January 1. 1990 IAS 28 Investments in Associates 1989 (2003) Investments in Associates and Joint Ventures (2011) January 1.N° Title Originally issued Effective Fully withdrawn January 1. 1990 .
1991 January 1. 1992 January 1. 2013 IFRS 11 and IFRS 12 January 1. 1999 January 1. 1990 January 1. 2007 IFRS 7 January 1. 1996 IAS 33 Earnings Per Share 1997 January 1. 1999 IAS 34 Interim Financial Reporting 1998 .N° Title Originally issued Effective Fully withdrawn Superseded by Financial Reporting in IAS 29 Hyperinflationary Economies Disclosures in the IAS 30 Financial Statements of Banks and Similar Financial Institutions Financial Reporting of Interests in Joint Ventures IAS 31 (1990) Interests in Joint Ventures (2003) Financial Instruments: Disclosure and IAS 32 Presentation (1995) Financial Instruments: Presentation (2005) 1995 1990 1990 1989 January 1.
2005 Superseded by IAS 35 Discontinuing Operations 1998 July 1. 2005 . 1999 July 1. 2001 January 1.N° Title Originally issued Effective Fully withdrawn January 1. 2001 IAS 40 Investment Property 2000 January 1. 1999 IFRS 5 IAS 36 Impairment of Assets Provisions. 2004 IFRS 2 Share-based Payment 2004 January 1. Contingent 1998 July 1. 1999 IAS 37 Liabilities and Contingent 1998 Assets IAS 38 Intangible Assets Financial Instruments: IAS 39 Recognition and Measurement 1998 1998 July 1. 1999 January 1. 2003 IAS 41 Agriculture 2000 First-time Adoption of IFRS 1 International Financial Reporting Standards 2003 January 1.
2006 IFRS 7 2005 January 1. 2009 January 1. 2005 IFRS 4 Insurance Contracts 2004 Non-current Assets Held IFRS 5 for Sale and Discontinued 2004 Operations Exploration for and IFRS 6 Evaluation of Mineral Resources Financial Instruments: Disclosures 2004 January 1. 2004 January 1. 2015 January 1. 2013 IFRS 8 Operating Segments 2006 IFRS 9 Financial Instruments 2009 IFRS 10 IFRS 11 Consolidated Financial Statements 2011 Joint Arrangements 2011 . 2013 January 1. 2005 January 1.N° Title Originally issued Effective Fully withdrawn Superseded by IFRS 3 Business Combinations 2004 April 1. 2007 January 1.
Financial Reporting and Analysis. .CFA 2012. 2013 January 1. 2013.Ainapure Financial Accounting.N° Title Originally issued Effective Fully withdrawn Superseded by IFRS 12 IFRS 13 Disclosure of Interests in Other Entities 2011 January 1.Vipul Financial Accounting for Accounting and Finance. 2013 Fair Value Measurement 2011 Bibliography: Advanced Financial Accounting.Schweser Financial Reporting and Analysis.