AFA CLASS DOC

KEY QUESTIONS

1 What is Advance Financial Accouting

It is a systematic process:
of identifying, measuring , recording , classifying
summarizing , interpreting , communicating

Types of Accounting
Financial Accouting

Advance Financial Accouting

Cost Accouting
Management Accounting

IFRS
International

>> GAAP ( Generally Accepted Accouting Principles )

>> Public Companies in US are required to prepare reconciliation of IFRS and GAAP

History
1854 > first ever Professional Body was formed ( ICAS)
1880 > ICAEW was formed
1887 > AICPA was formed
1961 > ICAP was formed
1966> ICMAP was formed
29 June 1973 > IASC was formed
IFAC > October 7, 1977 was formed
Int Accouting Standard Committee > June 1973 was formed
First Accouting Standard Issued > Jan 1975
IASB > '1st April 2001
IAS & IFRS

2 How Advance Financial Accounting is linked with IFRS

3 History of Adv Financial Accouting and IFRS
4 Who Developed IFRS
IRS Foundation >> Single Set of High Quality Standards which are understable , enforcable and globally a

The International Financial Reporting Standards Foundation, or IFRS Foundation, is a nonprofit accountin
of the International Financial Reporting Standards (IFRS Standards) through the Internatio
 The International Financial Reporting Standards Foundation, or IFRS Foundation, is a nonprofit accountin
of the International Financial Reporting Standards (IFRS Standards) through the Internatio
The IFRS Foundation states that its mission is to develop IFRS Standards that bring transparency, accoun
work serves the public interest by fostering trust, growth and long-term
The foundation was formerly named the International Accounting Standards Committee (IASC) until a r
IFRS Foundation Monitoring Boar

IFRS >>> Different Boards ( IASB is one of those boards ) >>> IFRS are developed by IASB
Three tier strcuture
T1 Public Accountabilty
T2 Governace
T3 Independent Standards Setting

The current members of the Monitoring Board are representatives of the Board and the Growth and Em
Commissions (IOSCO), the European Commission (EC), Financial Services Agency of Japan (JFSA), US Se
(CVM), Financial Services Commission of Korea (FSC), and Ministry of Finance of the People's Repub
participates in the Monitoring Board as a

IFRS Foundation Trsutees ( INDIVIDUALS)

The Trustees are responsible for the governance and oversight of the IFRS Foundation and the Internatio
The Trustees are not involved in any technical matters relating to IFRS Standards. This responsibility rest
Trustees are appointed for a renewable term of three years. Amendments to the term of the Trustee Ch
Each Trustee is expected to have an understanding of, and be sensitive to, international issues relevant t
The current Chair of the IFRS Foundation Trustees, Erkki Liikanen, began his term on 1 October 2018.

IASB , IFRS Interpretation Comittee

> Individual members

IFRS Interpretation Comittee

Process to issuence of IFRS

1 Agenda
A > Comprehensive Review and Considerations
B Five year project work plan
2 Research Program
Discussion paper
3 Exposure Draft
Final IFRS
4 Implementation
post implementation review

Public interest and large size companies ( IFRS)

Higher risk category
Strict Financial Reporting Requirements

A. listed ( listed on stock exchanges ) > IFRS + 4th Schedule

B. Public interest Companies > IFRS + 5th Schedule
* Public Sector Commpany ( OGDCL) > 50% share owned by government
* Public Utlity> any company which is providing utlitiy to general public e.g WAPD
* Holding Assets in Fudiciary capacity> Banks etc
C. Large size companies > capital more than Rs 200million ,Anual Turnover more
than 1billion , Employee 750
D. Foreign Company >> Revenue more than Rs 1 billion is also large size company

E. Comaopies which fall in category of Section 42 ( Non Profit Organizations ) and

Section 45 ( Comapaies Limited by Ganatuee) of Companies Act 2017

LIST OF IAS
IAS 1
IAS 2
IAS 3
Superseded in 1989 by IAS 27 and IAS 28
IAS 4
Withdrawn in 1999
IAS 5
Superseded by IAS 1 effective 1 July 1998
IAS 6
Superseded by IAS 15, which was withdrawn December 2003
IAS 7
IAS 8
IAS 9
Superseded by IAS 38 effective 1 July 1999
IAS 10
IAS 11
Will be superseded by IFRS 15 as of 1 January 2017
IAS 12
IAS 13
Superseded by IAS 1 effective 1 July 1998
IAS 14
Superseded by IFRS 8 effective 1 January 2009
IAS 15
Withdrawn December 2003
IAS 16
IAS 17
IAS 18
Will be superseded by IFRS 15 as of 1 January 2017
IAS 19
Superseded by IAS 19 (2011) effective 1 January 2013
IAS 19
IAS 20
IAS 21
IAS 22
Superseded by IFRS 3 effective 31 March 2004
IAS 23
IAS 24
IAS 25
Superseded by IAS 39 and IAS 40 effective 2001
IAS 26
IAS 27
IAS 27
Superseded by IFRS 10, IFRS 12 and IAS 27 (2011) effective 1 January 2013
IAS 28
IAS 28
Superseded by IAS 28 (2011) and IFRS 12 effective 1 January 2013
IAS 29
IAS 30
Superseded by IFRS 7 effective 1 January 2007
IAS 31
Superseded by IFRS 11 and IFRS 12 effective 1 January 2013
IAS 32
IAS 33
IAS 34
IAS 35
Superseded by IFRS 5 effective 1 January 2005
IAS 36
IAS 37
IAS 38
IAS 39
Superseded by IFRS 9 where IFRS 9 is applied
IAS 40
IAS 41

LIST OF IFRS

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 Resources
IFRS 7 — Financial Instruments: Disclosures
IFRS 8 — Operating Segments
IFRS 9 — Financial Instruments
IFRS 10 — Consolidated Financial Statements
IFRS 11 — Joint Arrangements
IFRS 12 — Disclosure of Interests in Other Entities
IFRS 13 — Fair Value Measurement
IFRS 14 — Regulatory Deferral Accounts
IFRS 15 — Revenue from Contracts with Customers
IFRS 16 — Leases
IFRS 17 — Insurance Contracts
 AFA CLASS DOC

> Deals with prepration of Financial Statements.( General PurposPurpose is to present Financial Information to Stakeholders lik
The FS that are intended to meet the need of users, who are not in position to require entity to
prepare specific reports to their particular needs.
Financial Accouting done by Big Companies.

Financial Accouting Standards

US

formed by 10 countries : Aus, Jap, German, Holand, France, UK, IRELAND, CAN, US, MEXICO

rstable , enforcable and globally acceptable

oundation, is a nonprofit accounting organisation. Its main objectives include the development and promotion
Standards) through the International Accounting Standards Board (IASB), which it oversees.[1]
oundation, is a nonprofit accounting organisation. Its main objectives include the development and promotion
Standards) through the International Accounting Standards Board (IASB), which it oversees.[1]
ds that bring transparency, accountability and efficiency to financial markets around the world, and that their
stering trust, growth and long-term financial stability in the global economy.
ndards Committee (IASC) until a renaming on 1 July 2010. It is governed by a board of 22 trustees[2] and the
IFRS Foundation Monitoring Board.[3]

developed by IASB

>>Satke for Governments and Government Institutions IFRS Foundation Monitary Board 2009
>> IFRS Foundation Trsutees Trsutees Lsit >> https://www.ifrs.org/group
>> IASB , IFRS Interpretation Comitte

the Board and the Growth and Emerging Markets Committee of the International Organization of Securities
vices Agency of Japan (JFSA), US Securities and Exchange Commission (SEC), Brazilian Securities Commission
y of Finance of the People's Republic of China (China MOF). The Basel Committee on Banking Supervision
pates in the Monitoring Board as an observer.

https://www.ifrs.org/groups/trustees-of-the-ifrs-foundation/#members
FRS Foundation and the International Accounting Standards Board (Board).
Standards. This responsibility rests solely with the Board. The Trustees are accountable to the Monitoring Board, a body of publicly accoun
ents to the term of the Trustee Chair and Vice-Chair were made in October 2018—for full details please see Constitution.
e to, international issues relevant to the success of an international organisation responsible for the development of high quality global acc
n his term on 1 October 2018.

>> Consideration with Accoutancy Bodies , Advisory Firms, MNC identify Gaps

Draft Standard

Medium size companies ( IFRS for SMEs) Small size companies ( Accouting and Financial Reporting Stan
Medium level risk Low level risk

A. Public Companies ( other than large size companies ) Private Company ( Capital less
than 10 million, revneue less than
B. Foregin Company with revenue less than Rs1 billion. 100 million and employees les
 100 million and employees les
C. Fall under Section 42,45 but not fall in First Category than 250)
D. Private Company ( if Private company got capital more than
Rs 10 million and less than 200 million )

LIST OF IAS
Presentation of Financial Statements 2007*
Inventories 2005*
Consolidated Financial Statements
1976
Depreciation Accounting

Information to Be Disclosed in Financial Statements

1976
Accounting Responses to Changing Prices

Statement of Cash Flows 1992

Accounting Policies, Changes in Accounting Estimates and Errors 2003
Accounting for Research and Development Activities

Events After the Reporting Period 2003

Construction Contracts
1993
Income Taxes 1996*
Presentation of Current Assets and Current Liabilities

Segment Reporting
1997
Information Reflecting the Effects of Changing Prices
2003
Property, Plant and Equipment 2003*
Leases 2003*
Revenue
1993*
Employee Benefits (1998)
1998
Employee Benefits (2011) 2011*
Accounting for Government Grants and Disclosure of Governmen 1983
The Effects of Changes in Foreign Exchange Rates 2003*
Business Combinations
1998*
Borrowing Costs 2007*
Related Party Disclosures 2009*
Accounting for Investments

Accounting and Reporting by Retirement Benefit Plans 1987

Separate Financial Statements (2011) 2011
Consolidated and Separate Financial Statements
2003
Investments in Associates and Joint Ventures (2011) 2011
Investments in Associates
2003
Financial Reporting in Hyperinflationary Economies 1989
Disclosures in the Financial Statements of Banks and Similar Financial Institutions
1990
Interests In Joint Ventures
2003*
Financial Instruments: Presentation 2003*
Earnings Per Share 2003*
Interim Financial Reporting 1998
Discontinuing Operations
1998
Impairment of Assets 2004*
Provisions, Contingent Liabilities and Contingent Assets 1998
Intangible Assets 2004*
Financial Instruments: Recognition and Measurement
2003*
Investment Property 2003*
Agriculture 2001

LIST OF IFRS
ISSUED DATE EFFECTIVE DATE
24-Nov-08 1-Jul-09
19-Feb-04 1-Jan-05
 10-Jan-08 1-Jul-09
31-Mar-04 1-Jan-05
31-Mar-04 1-Jan-05
9-Dec-04 1-Jan-06
18-Aug-05 1-Jan-07
30-Nov-06 1-Jan-09
24-Jul-14 1-Jan-18
12-May-11 1-Jan-13
12-May-11 1-Jan-13
12-May-11 1-Jan-13
12-May-11 1-Jan-13
30-Jan-14 1-Jan-16
28-May-14 1-Jan-18
13-Jan-16 1-Jan-19
18-May-17 1-Jan-23
ormation to Stakeholders like Gov Institutitions, Suppliers , Customers.
 Oversee old IFRS Foundation
https://www.ifrs.org/groups/trustees-of-the-ifrs-foundation/#members

rd, a body of publicly accountable market authorities.

ent of high quality global accounting standards for use in the world's capital markets and by other users.

and Financial Reporting Standards issued by ICAP