Dear All,
International Financial Reporting Standards (IFRS) are principles-based Standards, Interpretations and the Framework adopted by the International Accounting Standards Board (IASB). IFRS are considered a "principles based" set of standards in that they establish broad rules as well as dictating specific treatments for specific items of financial statements.
International Financial Reporting Standards comprise:
§ International Financial Reporting Standards (IFRS)—standards issued after 2001
§ International Accounting Standards (IAS)—standards issued before 2001
§ Interpretations originated from the International Financial Reporting Interpretations Committee (IFRIC)—issued after 2001
§ Standing Interpretations Committee (SIC)—issued before 2001
§ Framework for the Preparation and Presentation of Financial Statements (1989)
IFRS financial statements consist of (IAS1.8)
§ a Statement of Comprehensive Income or two separate statements comprising an Income Statement and a Statement of Comprehensive Income, which reconciles Profit or Loss on the Income statement to total comprehensive income
§ notes, including a summary of the significant accounting policies
An entity preparing IFRS accounts for the first time must apply IFRS in full for the current and comparative period although there are transitional exemptions. It is generally expected that IFRS adoption worldwide will be beneficial to investors and other users of financial statements, by reducing the costs of comparing alternative investments and increasing the quality of information. India has announced that IFRS will be mandatory in India for financial statements for the periods beginning on or after 1 April 2011 in a phased manner. This will be done by revising existing accounting standards to make them compatible with IFRS.
For further information, please refer
CA Rahul Joglekar
Partner
Gokhale & Sathe
Chartered Accountants
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