Accounting

Standards
Presented By:
Laiba Tufail Malik
FA18-BAF-005
 IFRS 5
 IFRS 5 was issued in 2004 and was applicable from 1st January 2005.
later, changes were made in it as other standards were developed.
 When a company plans to sell an asset and / or stop some part of its
business, then it might affect its future cash flows, profitability and
overall financial situation.
 Therefore,the users of financial statements, mainly investors, should
be informed about these events.
 Objectives:

 It specifies the accounting treatment for assets held for sale.

 Itsets the presentation and disclosure requirements for discontinued
operations.
 Conditions:

 Assets must be available for immediate sale.

 Sale must be highly probable.
 Must be genuinely sold, not abandoned.
 IFRS 6
 IFRS 6 was issued in December 2004 and ap1icable from January 2006.
 IFRS 6 deals with exploration and evaluation of mineral resources
including the recognition of exploration and evaluation assets.
 Objectives:

Exploration and evaluation of mineral resources states:

The search for mineral resources, including minerals, oil, natural gas
and similar non-regenerative resources.
After the entity has obtained legal rights to explore in a specific area.
The determination of the technical feasibility and commercial viability
of extracting the mineral resource.