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.International Financial Reporting Standards (IFRS) are Standards,[1] Interpretations and the Framework[2][3] adopted by the International Accounting Standards Board (IASB).^ London: International Accounting Standards Committee, 1998.
  • International Accounting Standards Committee (IASC) 29 September 2009 17:58 UTC www.referenceforbusiness.com [Source type: FILTERED WITH BAYES]

^ Harmonisation of financial reporting around IFRS should increase the comparability of corporate financial performance and lead to considerably greater financial transparency and accountability.
  • Accounting and Finance to lead new research on the impact of International Financial Reporting Standards (IFRS) 9 January 2010 19:35 UTC www.lums.lancs.ac.uk [Source type: News]

^ Most of these opinions correlate with American Institute of Certified Public Accountants' (AICPA's) Accounting Principles Board and Financial Accounting Standards Boards (FASB) statements.
  • Harmonization of international accounting standards. | Professional Services > Accounting Professionals Center from AllBusiness.com 29 September 2009 17:58 UTC www.allbusiness.com [Source type: News]

.Many of the standards forming part of IFRS are known by the older name of International Accounting Standards (IAS).^ International accounting standards .
  • UK looks to international accounting standards - International Financial Law Review - The 2005 Guide to Structured Finance 29 September 2009 17:58 UTC www.iflr.com [Source type: FILTERED WITH BAYES]

^ Links to the summaries of IFRS and International Accounting Standards.
  • AICPA Announces Web Site on International Financial Reporting Standards 9 January 2010 19:35 UTC www.aicpa.org [Source type: FILTERED WITH BAYES]

^ Where can I find international accounting standards ?
  • Questions about International Accounting Standards - Ask.com 29 September 2009 17:58 UTC www.ask.com [Source type: General]

.IAS were issued between 1973 and 2001 by the Board of the International Accounting Standards Committee (IASC).^ London: International Accounting Standards Committee, 1998.
  • International Accounting Standards Committee (IASC) 29 September 2009 17:58 UTC www.referenceforbusiness.com [Source type: FILTERED WITH BAYES]

^ And the major difference is that the IAS’s were issued by the International Accounting Standards Committee (IASC) from 1973 to 2001, while the IFRS’s were issued by the International Accounting Standards Board (IASB) from 2001 onwards.
  • The Difference Between IFRS and IAS | Deuts.NET 29 September 2009 16:016 UTC deuts.net [Source type: General]

^ The accounting practices suggested by the International Accounting Standards Board are also described.
  • Abstracts: The survival of international differences under IFRS: towards a research agenda. International Financial Reporting Standards (IFRS): pros and cons for investors - Business 9 January 2010 19:35 UTC www.faqs.org [Source type: Academic]

.On 1 April 2001, the new IASB took over from the IASC the responsibility for setting International Accounting Standards.^ INTERNATIONAL ACCOUNTING STANDARD IAS 15 .
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

^ INTERNATIONAL ACCOUNTING STANDARD IAS 11 .
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

^ International accounting standards .
  • BTPLC Annual Report 2004 - Financial review 9 January 2010 19:35 UTC www.btplc.com [Source type: FILTERED WITH BAYES]
  • UK looks to international accounting standards - International Financial Law Review - The 2005 Guide to Structured Finance 29 September 2009 17:58 UTC www.iflr.com [Source type: FILTERED WITH BAYES]

.During its first meeting the new Board adopted existing IAS and SICs.^ The International Accounting Standards Board (IASB) adopted them in 2001 to replace the earlier International Accounting Standards (IAS) set by the International Accounting Standards Committee.

^ Please note that during this period existing patches will continue to be available on the Hyperion Download Center , however, new patches will be made available through MetaLink 3.
  • Support | Oracle and Hyperion 20 November 2009 7:19 UTC www.oracle.com [Source type: General]

^ When IASB was installed in 2001, it adopted the existing IAS and decided to name any future standards as International Financial Reporting Standards .
  • The Difference Between IFRS and IAS | Deuts.NET 29 September 2009 16:016 UTC deuts.net [Source type: General]

The IASB has continued to develop standards calling the new standards IFRS.

Contents

Structure of IFRS

.IFRS are considered a "principles based" set of standards in that they establish broad rules as well as dictating specific treatments.^ It has been suggested that standards should be based on principles, not rules.
  • Uniform Financial Reporting Standards 9 January 2010 19:35 UTC www.nysscpa.org [Source type: FILTERED WITH BAYES]

^ Principles-Based vs. Rules-Based Accounting .
  • Accounting Management Solutions, Inc. - Preparing for IFRS 29 September 2009 16:016 UTC www.amsolutions.net [Source type: FILTERED WITH BAYES]

^ Most world accounting standards mirror U.S. standards that are specific and rules-based versus principle-based.
  • International Financial Reporting Standards Draft Released | AccountingWEB.com 9 January 2010 19:35 UTC www.accountingweb.com [Source type: News]

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
.There is also a Framework for the Preparation and Presentation of Financial Statements which describes the principles underlying IFRS...^ Step 3 Study the IFRS introductory guidance principles on the presentation of financial statements.
  • How to Conform to International Accounting Standards | eHow.com 29 September 2009 17:58 UTC www.ehow.com [Source type: FILTERED WITH BAYES]

^ GAAP in preparing the company’s financial statements.
  • The Development of Financial Accounting and Reporting Standards 9 January 2010 19:35 UTC highered.mcgraw-hill.com [Source type: FILTERED WITH BAYES]

^ IAS 1: Presentation of financial statements .
  • International Financial Reporting Standards (IFRS),International Accounting Standards (IAS),IASB, IFRS, IAS 9 January 2010 19:35 UTC www.ifrsclass.com [Source type: Reference]
  • International Financial Reporting Standards (IFRS),International Accounting Standards (IAS),IASB, IFRS, IAS 9 January 2010 19:35 UTC www.ifrsdictionary.com [Source type: Academic]

IAS 8 Par. 11
"In making the judgement described in paragraph 10, management shall refer to, and consider the applicability of, the following sources in descending order:
(a) the requirements and guidance in Standards and Interpretations dealing with similar and related issues; and
.(b) the definitions, recognition criteria and measurement concepts for assets, liabilities, income and expenses in the Framework."^ In making that judgement, IAS 8.11 requires management to consider the definitions, recognition criteria and measurement concepts for assets, liabilities, income, and expenses in the Framework.
  • SUMMARIES OF INTERNATIONAL FINANCIAL REPORTING STANDARDS 9 January 2010 19:35 UTC mstawfik.7p.com [Source type: Academic]

^ In making that judgement, IAS 8.11 requires management to consider the definitions, recognition criteria, and measurement concepts for assets, liabilities, income, and expenses in the Framework.
  • IAS Plus: Framework for the Preparation of Financial Statements 20 November 2009 7:19 UTC www.iasplus.com [Source type: Reference]

^ In making that judgement, IAS 8.11 requires management to consider the definitions, recognition criteria and measurement concepts for assets, liabilities, income, and expenses in the Framework .
  • IAS Plus: Summaries of IFRSs and IASs 9 January 2010 19:35 UTC www.iasplus.com [Source type: FILTERED WITH BAYES]

Framework

Role of Framework

The IASB states:
.In the absence of a Standard or an Interpretation that specifically applies to a transaction, management must use its judgement in developing and applying an accounting policy that results in information that is relevant and reliable.^ While a theoretical understanding of a standard is necessary, practitioners must be able to apply the relevant standard.
  • Applying International Accounting Standards - Preface 29 September 2009 17:58 UTC www.johnwiley.com.au [Source type: FILTERED WITH BAYES]

^ In the absence of a Standard or an Interpretation that specifically applies to a transaction, management must use its judgement in developing and applying an accounting policy that results in information that is relevant and reliable.
  • IAS Plus: Framework for the Preparation of Financial Statements 20 November 2009 7:19 UTC www.iasplus.com [Source type: Reference]

^ The information that results from applying a new standard should be relevant to the investment evaluation process.
  • International Accounting Standards 29 September 2009 17:58 UTC www.cfainstitute.org [Source type: FILTERED WITH BAYES]

.In making that judgement, IAS 8.11 requires management to consider the definitions, recognition criteria, and measurement concepts for assets, liabilities, income, and expenses in the Framework.^ Recognition and measurement of financial assets and financial liabilities on or off the balance sheet?
  • International Financial Reporting Standards - Nairobi - financial training courses, in-house courses, legal and lease training courses 9 January 2010 19:35 UTC www.euromoneytraining.com [Source type: Academic]

^ In general, IAS 39 requires recognition and measurement of all financial assets and liabilities, including derivatives.
  • Accounting and Reporting for Financial Instruments: International Developments 9 January 2010 19:35 UTC www.nysscpa.org [Source type: FILTERED WITH BAYES]

^ In making that judgement, IAS 8.11 requires management to consider the definitions, recognition criteria, and measurement concepts for assets, liabilities, income, and expenses in the Framework.
  • IAS Plus: Framework for the Preparation of Financial Statements 20 November 2009 7:19 UTC www.iasplus.com [Source type: Reference]

.This elevation of the importance of the Framework was added in the 2003 revisions to IAS 8
.^ This elevation of the importance of the Framework was added in the 2003 revisions to IAS 8.
  • IAS Plus: Framework for the Preparation of Financial Statements 20 November 2009 7:19 UTC www.iasplus.com [Source type: Reference]

^ This hedging issue, called macro-hedging, was added to IAS 39 in a separate amendment issued after December 2003.
  • Accounting and Reporting for Financial Instruments: International Developments 9 January 2010 19:35 UTC www.nysscpa.org [Source type: FILTERED WITH BAYES]

^ The revised IAS 39 was issued on December 17 2003 and is effective for periods beginning on or after January 1 2005.
  • UK looks to international accounting standards - International Financial Law Review - The 2005 Guide to Structured Finance 29 September 2009 17:58 UTC www.iflr.com [Source type: FILTERED WITH BAYES]

[4]

Objective of financial statements

.A framework is the foundation of accounting standards.^ Accounting standards are underpinned by a conceptual framework .
  • Applying International Accounting Standards - Preface 29 September 2009 17:58 UTC www.johnwiley.com.au [Source type: FILTERED WITH BAYES]

^ The Eurasian Council of Certified Accountants and Auditors prepared the official translation and the International Accounting Standards Committee Foundation reviewed the document for accuracy.
  • USAID, TURKMENISTAN TAKE ANOTHER STEP TOWARDS MEETING INTERNATIONAL FINANCIAL REPORTING STANDARDS 9 January 2010 19:35 UTC centralasia.usaid.gov [Source type: FILTERED WITH BAYES]

^ In 1984, the Foundation established a Governmental Accounting Standards Board ( GASB ) to set standards of financial accounting and reporting for state and local governmental units.
  • FASB US GAAP Financial Accounting Standards Board 20 November 2009 7:19 UTC www.valuebasedmanagement.net [Source type: FILTERED WITH BAYES]

Underlying assumptions

The underlying assumptions used in IFRS are:
  • Accrual basis - the effect of transactions and other events are recognized when they occur, not as cash is gained or paid.
  • Going concern -an entity will continue for the foreseeable future.

Qualitative characteristics of financial statements

Qualitative characteristics of financial statements include:
  • Understandability
  • Reliability
  • Comparability
  • Relevance
  • Materiality
  • Prudence
  • Substance over form
  • Completeness

Elements of financial statements

.The financial position of an enterprise is primarily provided in the Statement of Financial Position.^ The statement of financial position 40 .
  • Pearson Education - International Financial Reporting 9 January 2010 19:35 UTC www.pearsoned.co.uk [Source type: Reference]

^ Group statement of financial position .
  • Pearson Education - International Financial Reporting 9 January 2010 19:35 UTC www.pearsoned.co.uk [Source type: Reference]

^ Format and content of statement of financial position .
  • IFRS Courses in Canada ~ IASeminars: specialists in IFRS & US GAAP training 29 September 2009 16:016 UTC www.iaseminars.com [Source type: Reference]

The elements include:
.1. Asset: An asset is a resource controlled by the enterprise as a result of past events, and from which future economic benefits are expected to flow to the enterprise.^ A liability is a present obligation of the entity arising from past events, the settlement of which is expected to result in an outflow from the entity of resources embodying economic benefits.
  • IAS Plus: Framework for the Preparation of Financial Statements 20 November 2009 7:19 UTC www.iasplus.com [Source type: Reference]

^ A liability is a present obligation of the enterprise arising from past events, the settlement of which is expected to result in an outflow from the enterprise of resources embodying economic benefits.
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

^ Future economic benefits .
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

.2. Liability: A liability is a present obligation of the enterprise arising from the past events, the settlement of which is expected to result in an outflow from the enterprise' resources, i.e., assets.^ An asset is a resource controlled by the entity as a result of past events and from which future economic benefits are expected to flow to the entity.
  • IAS Plus: Framework for the Preparation of Financial Statements 20 November 2009 7:19 UTC www.iasplus.com [Source type: Reference]

^ A liability is a present obligation of the entity arising from past events, the settlement of which is expected to result in an outflow from the entity of resources embodying economic benefits.
  • IAS Plus: Framework for the Preparation of Financial Statements 20 November 2009 7:19 UTC www.iasplus.com [Source type: Reference]

^ IAS 10, Events after the Balance Sheet Date requires that dividends declared after the balance sheet date should not be recognised as a liability at that balance sheet date as the liability does not represent a present obligation as defined by IAS 37, "Provisions, Contingent Liabilities and Contingent Assets" The impact on retained profit for 2004 is to exclude the final proposed dividend for 2004 of 9.8 million as this was declared in 2005.
  • Aegis Group plc - International Financial Reporting Standards (IFRS) 9 January 2010 19:35 UTC www.aegisgroupplc.com [Source type: FILTERED WITH BAYES]

.3. Equity: Equity is the residual interest in the assets of the enterprise after deducting all the liabilities.^ An equity instrument is any contract that evidences a residual interest in the assets of an enterprise after deducting all of its liabilities.
  • Accounting and Reporting for Financial Instruments: International Developments 9 January 2010 19:35 UTC www.nysscpa.org [Source type: FILTERED WITH BAYES]
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

^ Equity is the residual interest in the assets of the entity after deducting all its liabilities.
  • IAS Plus: Framework for the Preparation of Financial Statements 20 November 2009 7:19 UTC www.iasplus.com [Source type: Reference]

^ Mandatory exceptions to the general principles including: Use of estimates; Derecognition of financial assets and financial liabilities; Hedge accounting; and Non-controlling interests .
  • IFRS Courses in Canada ~ IASeminars: specialists in IFRS & US GAAP training 29 September 2009 16:016 UTC www.iaseminars.com [Source type: Reference]

Equity is also known as owner's equity.
.The financial performance of an enterprise is primarily provided in an income statement or profit and loss account.^ [F.17] The Framework states that information about performance is primarily provided in an income statement.
  • IAS Plus: Framework for the Preparation of Financial Statements 20 November 2009 7:19 UTC www.iasplus.com [Source type: Reference]

^ Profit and loss account .
  • Sportingbet Plc Annual Report 2006 - Explanation of Transition to International Financial Reporting Standards ('IFRS') 9 January 2010 19:35 UTC annualreport2006.sportingbetplc.com [Source type: FILTERED WITH BAYES]

^ To meet this objective, financial statements provide information about an enterprise's: .
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

The elements of an income statement or the elements that measure the financial performance are as follows:
.4. Revenues: increases in economic benefit during an accounting period in the form of inflows or enhancements of assets, or decrease of liabilities that result in increases in equity.^ Definitions of segment revenue, expense, result, assets, and liabilities .
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

^ A contingent asset should be disclosed where an inflow of economic benefits is probable.
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

^ Income is defined in the framework for the preparation and presentation of financial statements as increases in economic benefits during the accounting period in the form of inflows or enhancements of assets or decreases of liabilities that result in increases in equity, other than those relating to contributions from equity participants.
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

.However, it does not include the contributions made by the equity participants, i.e., proprietor, partners and shareholders.^ However, an adjustment to the carrying amount of goodwill should be made only to the extent that it does not increase the carrying amount of goodwill above its recoverable amount.
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

^ The consideration received by the venturer(s) in exchange for assets contributed to the JCE may also include cash or other consideration that does not depend on future cash flows of the JCE ("additional consideration").
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

.5. Expenses: decreases in economic benefits during an accounting period in the form of outflows, or depletions of assets or incurrences of liabilities that result in decreases in equity.^ Income is increases in economic benefits during the accounting period in the form of inflows or enhancements of assets or decreases of liabilities that result in increases in equity, other than those relating to contributions from equity participants.
  • IAS Plus: Framework for the Preparation of Financial Statements 20 November 2009 7:19 UTC www.iasplus.com [Source type: Reference]

^ Expenses are decreases in economic benefits during the accounting period in the form of outflows or depletions of assets or incurrences of liabilities that result in decreases in equity, other than those relating to distributions to equity participants.
  • IAS Plus: Framework for the Preparation of Financial Statements 20 November 2009 7:19 UTC www.iasplus.com [Source type: Reference]

^ Definitions of segment revenue, expense, result, assets, and liabilities .
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

Recognition of elements of financial statements

An item is recognized in the financial statements when:
  • it is probable future economic benefit will flow to or from an entity and
  • when the item has a cost or value that can be measured with reliability.
  • stability

Measurement of the Elements of Financial Statements

Par. .99. Measurement is the process of determining the monetary amounts at which the elements of the financial statements are to be recognised and carried in the balance sheet and income statement.^ The balance of 81 is recognised as an expense in the income statement.
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

^ Recognition and measurement of financial assets and financial liabilities on or off the balance sheet?
  • International Financial Reporting Standards - Nairobi - financial training courses, in-house courses, legal and lease training courses 9 January 2010 19:35 UTC www.euromoneytraining.com [Source type: Academic]

^ An impairment loss, represented by the excess of carrying amount over recoverable amount, is recognised in the income statement as an impairment loss.
  • Cochlear Annual Report 2006 : Financial Report : Notes to the financial statements : 31. Impact of adopting Australian equivalents to International Financial Reporting Standards 9 January 2010 19:35 UTC corporate.cochlear.com [Source type: Reference]

.This involves the selection of the particular basis of measurement.^ [F.101] The Framework does not include concepts or principles for selecting which measurement basis should be used for particular elements of financial statements or in particular circumstances.
  • IAS Plus: Framework for the Preparation of Financial Statements 20 November 2009 7:19 UTC www.iasplus.com [Source type: Reference]

pa
Par. .100. A number of different measurement bases are employed to different degrees and in varying combinations in financial statements.^ International Financial Reporting Standards (IFRS) is a principles-based set of international accounting standards indicating how transactions and other events should be reported in financial statements.
  • Financial Content - Financial Content Provider - Financial Data Provider 9 January 2010 19:35 UTC studio-5.financialcontent.com [Source type: News]

^ [F.99] The Framework acknowledges that a variety of measurement bases are used today to different degrees and in varying combinations in financial statements, including: [F.100] Historical cost Current cost Net realisable (settlement) value Present value (discounted) Historical cost is the measurement basis most commonly used today, but it is usually combined with other measurement bases.
  • IAS Plus: Framework for the Preparation of Financial Statements 20 November 2009 7:19 UTC www.iasplus.com [Source type: Reference]

^ HKFRS set out recognition, measurement, presentation and disclosure requirements dealing with transactions and events that are important in general purpose financial statements.
  • Financial reporting - Hong Kong Institute of Certified Public Accountants 9 January 2010 19:35 UTC www.hkicpa.org.hk [Source type: Academic]

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.^ Determining the fair values of identifiable assets and liabilities acquired .
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

^ The acquired identifiable assets, liabilities and contingent liabilities are recognised at their fair value at the date of acquisition.
  • Transition to International Financial Reporting Standards 9 January 2010 19:35 UTC www.iqep.com [Source type: FILTERED WITH BAYES]

^ Assets carried at fair value .
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

.Liabilities are recorded at the amount of proceeds received in exchange for the obligation, or in some circumstances (for example, income taxes), at the amounts of cash or cash equivalents expected to be paid to satisfy the liability in the normal course of business.^ Segment liabilities do not include income tax liabilities.
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

^ The gain or loss of the cash flow hedge is reported as a portion of equity until the cash flow transaction is complete, at which time the accumulated gain or loss either adjusts the carrying amount of the acquired asset or liability or is reported in the net income in the same period as the completed transaction, as applicable.
  • Accounting and Reporting for Financial Instruments: International Developments 9 January 2010 19:35 UTC www.nysscpa.org [Source type: FILTERED WITH BAYES]

^ The DIFC offers its member institutions incentives such as 100 per cent foreign ownership, zero tax on income and profits and no restrictions on foreign exchange.
  • EFG Bank joins Dubai International Financial Centre (DIFC) | DIFC | AMEinfo.com 9 January 2010 19:35 UTC www.ameinfo.com [Source type: News]

(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.^ The carrying amount of a cash-generating unit: .
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

^ Intangible assets Deferred tax: determination of the tax base on an acquisition with particular reference to identifiable intangible assets The determination of the tax base of any asset is based on the manner in which the entity expects to recover or settle the carrying amount of the asset.
  • Australian Implementation of International Financial Reporting Standards (IFRS) : Australian Institute of Company Directors (AICD) 9 January 2010 19:35 UTC www.companydirectors.com.au [Source type: FILTERED WITH BAYES]

^ The gain or loss of the cash flow hedge is reported as a portion of equity until the cash flow transaction is complete, at which time the accumulated gain or loss either adjusts the carrying amount of the acquired asset or liability or is reported in the net income in the same period as the completed transaction, as applicable.
  • Accounting and Reporting for Financial Instruments: International Developments 9 January 2010 19:35 UTC www.nysscpa.org [Source type: FILTERED WITH BAYES]

.Liabilities are carried at the undiscounted amount of cash or cash equivalents that would be required to settle the obligation currently.^ The carrying amount of a cash-generating unit: .
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

^ Cash and cash equivalents (definition, policy requirements) .
  • IFRS Courses in Canada ~ IASeminars: specialists in IFRS & US GAAP training 29 September 2009 16:016 UTC www.iaseminars.com [Source type: Reference]

^ Current liabilities include accrued expenses with a carrying amount of 100.
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

(c) Realisable (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.^ The gain or loss of the cash flow hedge is reported as a portion of equity until the cash flow transaction is complete, at which time the accumulated gain or loss either adjusts the carrying amount of the acquired asset or liability or is reported in the net income in the same period as the completed transaction, as applicable.
  • Accounting and Reporting for Financial Instruments: International Developments 9 January 2010 19:35 UTC www.nysscpa.org [Source type: FILTERED WITH BAYES]

^ Assets that are subject to amortisation or depreciation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.
  • Transition to International Financial Reporting Standards 9 January 2010 19:35 UTC www.imgtec.com [Source type: FILTERED WITH BAYES]

^ The information could be provided for no incremental cost because preparers currently must compute the year-by-year cash flows in order to aggregate them.
  • RE: Proposed International Accounting Standard 20 November 2009 7:19 UTC www.cfainstitute.org [Source type: FILTERED WITH BAYES]

.Liabilities are carried at their settlement values; that is, the undiscounted amounts of cash or cash equivalents expected to be paid to satisfy the liabilities in the normal course of business.^ The gain or loss of the cash flow hedge is reported as a portion of equity until the cash flow transaction is complete, at which time the accumulated gain or loss either adjusts the carrying amount of the acquired asset or liability or is reported in the net income in the same period as the completed transaction, as applicable.
  • Accounting and Reporting for Financial Instruments: International Developments 9 January 2010 19:35 UTC www.nysscpa.org [Source type: FILTERED WITH BAYES]

^ The effects of transactions and other events are recognised when they occur, rather than when cash or its equivalent is received or paid, and they are reported in the financial statements of the periods to which they relate.
  • IAS Plus: Framework for the Preparation of Financial Statements 20 November 2009 7:19 UTC www.iasplus.com [Source type: Reference]

^ Under current GAAP, community loans are recorded at the amounts ultimately expected to be received in settlement of the loan (excluding interest), which is normally the amount that was lent to the entity, and takes no account of the time value of money.
  • 2.1 The transition to New Zealand equivalents to International Financial Reporting Standards — Office of the Auditor-General New Zealand 9 January 2010 19:35 UTC www.oag.govt.nz [Source type: FILTERED WITH BAYES]

(d) Present value. .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.^ Value in use is determined using discounted estimated future cash flows.
  • U3O8 Corp. to Early Adopt International Financial Reporting Standards in 2010 - Yahoo! Finance 9 January 2010 19:35 UTC finance.yahoo.com [Source type: FILTERED WITH BAYES]
  • U3O8 Corp. to Early Adopt International Financial Reporting Standards in 2010 - news from Boston.com 9 January 2010 19:35 UTC finance.boston.com [Source type: FILTERED WITH BAYES]
  • U3O8 Corp. to Early Adopt International Financial Reporting Standards in 2010 - news from CBS MoneyWatch.com 9 January 2010 19:35 UTC finance.bnet.com [Source type: FILTERED WITH BAYES]

^ In assessing value in use, estimated future cashflows are discounted to their present value using a discount rate appropriate to the specific asset or cash generating unit.
  • Transition to International Financial Reporting Standards 9 January 2010 19:35 UTC www.imgtec.com [Source type: FILTERED WITH BAYES]

^ Value in use is based on the present value of the future cash flows relating to the asset.
  • Transition to International Financial Reporting Standards 9 January 2010 19:35 UTC www.iqep.com [Source type: FILTERED WITH BAYES]

.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.^ Value in use is determined using discounted estimated future cash flows.
  • U3O8 Corp. to Early Adopt International Financial Reporting Standards in 2010 - Yahoo! Finance 9 January 2010 19:35 UTC finance.yahoo.com [Source type: FILTERED WITH BAYES]
  • U3O8 Corp. to Early Adopt International Financial Reporting Standards in 2010 - news from Boston.com 9 January 2010 19:35 UTC finance.boston.com [Source type: FILTERED WITH BAYES]
  • U3O8 Corp. to Early Adopt International Financial Reporting Standards in 2010 - news from CBS MoneyWatch.com 9 January 2010 19:35 UTC finance.bnet.com [Source type: FILTERED WITH BAYES]

^ Provisions are recognised when the Group has a legal or constructive obligation as a result of a past event; it is probable that an outflow of resources will be required to settle the obligation; and the amount can be reliably estimated.
  • Transition to International Financial Reporting Standards 9 January 2010 19:35 UTC www.iqep.com [Source type: FILTERED WITH BAYES]

^ Because the time value of money is considered by discounting the estimated future cash flows, these cash flows exclude cash inflows or outflows from financing activities.
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

Par. .101. The measurement basis most commonly adopted by entities in preparing their financial statements is historical cost.^ Historical cost financial statements .
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

^ Responsibility for Financial Statements The management of an entity has the primary responsibility for preparing and presenting the entity's financial statements.
  • IAS Plus: Framework for the Preparation of Financial Statements 20 November 2009 7:19 UTC www.iasplus.com [Source type: Reference]

^ Current cost financial statements .
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

.This is usually combined with other measurement bases.^ [F.99] The Framework acknowledges that a variety of measurement bases are used today to different degrees and in varying combinations in financial statements, including: [F.100] Historical cost Current cost Net realisable (settlement) value Present value (discounted) Historical cost is the measurement basis most commonly used today, but it is usually combined with other measurement bases.
  • IAS Plus: Framework for the Preparation of Financial Statements 20 November 2009 7:19 UTC www.iasplus.com [Source type: Reference]

.For example, inventories are usually carried at the lower of cost and net realisable value, marketable securities may be carried at market value and pension liabilities are carried at their present value.^ Inventories Stock is valued at the lower of cost and net realisable value.
  • Transition to International Financial Reporting Standards 9 January 2010 19:35 UTC www.imgtec.com [Source type: FILTERED WITH BAYES]

^ [F.99] The Framework acknowledges that a variety of measurement bases are used today to different degrees and in varying combinations in financial statements, including: [F.100] Historical cost Current cost Net realisable (settlement) value Present value (discounted) Historical cost is the measurement basis most commonly used today, but it is usually combined with other measurement bases.
  • IAS Plus: Framework for the Preparation of Financial Statements 20 November 2009 7:19 UTC www.iasplus.com [Source type: Reference]

^ As a rule of thumb, consultants estimate that, for the average pension fund, a 1 per cent decrease in interest rates leads to a 10 per cent increase in the present value of plan liabilities.
  • Recent Trends in Canadian Defined-Benefit ...-Summer 2005-Bank of Canada Review-Periodicals- Publications and Research- Bank of Canada 20 November 2009 7:19 UTC www.bank-banque-canada.ca [Source type: FILTERED WITH BAYES]

.Furthermore, 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.^ Strengths of historical cost accounting 273 .
  • Pearson Education - International Financial Reporting 9 January 2010 19:35 UTC www.pearsoned.co.uk [Source type: Reference]

^ Non-current assets held for sale .
  • IFRS Courses in Canada ~ IASeminars: specialists in IFRS & US GAAP training 29 September 2009 16:016 UTC www.iaseminars.com [Source type: Reference]
  • Pearson Education - International Financial Reporting 9 January 2010 19:35 UTC www.pearsoned.co.uk [Source type: Reference]

^ Non-current assets .
  • Transition to International Financial Reporting Standards 9 January 2010 19:35 UTC www.imgtec.com [Source type: FILTERED WITH BAYES]

Concepts of Capital and Capital Maintenance

Concepts of Capital

Par. .102. A financial concept of capital is adopted by most entities in preparing their financial statements.^ GAAP in preparing the company’s financial statements.
  • The Development of Financial Accounting and Reporting Standards 9 January 2010 19:35 UTC highered.mcgraw-hill.com [Source type: FILTERED WITH BAYES]

^ The concept has been readily understood by preparers and users of financial statements.
  • UK looks to international accounting standards - International Financial Law Review - The 2005 Guide to Structured Finance 29 September 2009 17:58 UTC www.iflr.com [Source type: FILTERED WITH BAYES]

^ Responsibility for Financial Statements The management of an entity has the primary responsibility for preparing and presenting the entity's financial statements.
  • IAS Plus: Framework for the Preparation of Financial Statements 20 November 2009 7:19 UTC www.iasplus.com [Source type: Reference]

.Under a financial concept of capital, such as invested money or invested purchasing power, capital is synonymous with the net assets or equity of the entity.^ Public benefit entities are entities whose primary objective is to provide goods or services for a community or a social benefit, and where any risk capital has been provided with a view to supporting that primary objective rather than for a financial return to equity shareholders.
  • Part 4: Planning for conversion to the New Zealand equivalents of International Financial Reporting Standards — Office of the Auditor-General New Zealand 9 January 2010 19:35 UTC www.oag.govt.nz [Source type: FILTERED WITH BAYES]

^ All Australian entities preparing financial reports under the Corporations Act 2001 must comply with the Australian equivalents to IFRS for financial years beginning on or after 1 January 2005.
  • International Financial Reporting Standards: overview 9 January 2010 19:35 UTC www.ato.gov.au [Source type: General]

^ One way shows financial information in terms of general purchasing power.
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

.Under a physical concept of capital, such as operating capability, capital is regarded as the productive capacity of the entity based on, for example, units of output per day.^ Under AIFRS, expenditure on development activities is capitalised if the product or process is technically and commercially feasible and the Consolidated Entity has sufficient resources to complete the development.
  • Cochlear Annual Report 2006 : Financial Report : Notes to the financial statements : 31. Impact of adopting Australian equivalents to International Financial Reporting Standards 9 January 2010 19:35 UTC corporate.cochlear.com [Source type: Reference]

^ Even if part or all of the output produced by an asset or a group of assets is used by other units of the reporting enterprise (for example, products at an intermediate stage of a production process), this asset or group of assets forms a separate cash-generating unit if the enterprise could sell this output on an active market.
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

^ A fixed price contract is a construction contract in which the contractor agrees to a fixed contract price, or a fixed rate per unit of output, which in some cases is subject to cost escalation clauses.
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

Par. .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.^ Financial statement users also find the following information relevant to their needs: .
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

^ The concept has been readily understood by preparers and users of financial statements.
  • UK looks to international accounting standards - International Financial Law Review - The 2005 Guide to Structured Finance 29 September 2009 17:58 UTC www.iflr.com [Source type: FILTERED WITH BAYES]

^ The financial statements should also disclose: .
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

.Thus, 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.^ The concept has been readily understood by preparers and users of financial statements.
  • UK looks to international accounting standards - International Financial Law Review - The 2005 Guide to Structured Finance 29 September 2009 17:58 UTC www.iflr.com [Source type: FILTERED WITH BAYES]

^ International Financial Reporting Standards (IFRS) is a principles-based set of international accounting standards indicating how transactions and other events should be reported in financial statements.
  • Financial Content - Financial Content Provider - Financial Data Provider 9 January 2010 19:35 UTC studio-5.financialcontent.com [Source type: News]

^ Do you deem the disclosure required comprehensive to enable users of financial statements to forecast future cash flows?
  • RE: Proposed International Accounting Standard 20 November 2009 7:19 UTC www.cfainstitute.org [Source type: FILTERED WITH BAYES]

.If, however, the main concern of users is with the operating capability of the entity, a physical concept of capital should be used.^ Please note that IAS 14 Segment reporting has been superceded by the issue of IFRS 8 Operating segments ; however, IAS 14 remains applicable until IFRS 8 is adopted by the reporting entity.
  • International financial reporting standards (IFRS and IAS) 9 January 2010 19:35 UTC www.cpaaustralia.com.au [Source type: News]

^ Users of the financial statements of a parent are usually concerned with, and need to be informed about, the financial position, results of operations and changes in financial position of the group as a whole.
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

^ An enterprise should report cash flows from operating activities using either: .
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

.The concept chosen indicates the goal to be attained in determining profit, even though there may be some measurement difficulties in making the concept operational.^ When resources flow from the enterprise, part or all of their amounts may be deductible in determining taxable profit of a period later than the period in which the liability is recognised.
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

^ An enterprise should assess at each balance sheet date whether there is any indication that an asset may be impaired.
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

^ In the local government sector, there are a number of sub-sectors that may comprise entities that are both profit-oriented and for public benefit.
  • 2.1 The transition to New Zealand equivalents to International Financial Reporting Standards — Office of the Auditor-General New Zealand 9 January 2010 19:35 UTC www.oag.govt.nz [Source type: FILTERED WITH BAYES]

[3]

Concepts of Capital Maintenance and the Determination of Profit

Par. 104. The concepts of capital in paragraph 102 give rise to the following concepts of capital maintenance:
(a) Financial capital maintenance. .Under this concept a profit is earned only if the financial (or money) amount of the net assets at the end of the period exceeds the financial (or money) amount of net assets at the beginning of the period, after excluding any distributions to, and contributions from, owners during the period.^ The adjustments to net assets are measurement adjustments only.
  • National Grid Transco - Annual Report and Accounts 2004/05 - International Financial Reporting Standards 29 September 2009 16:016 UTC www.investis.com [Source type: News]
  • National Grid Transco - Annual Report and Accounts 2004/05 - International Financial Reporting Standards 9 January 2010 19:35 UTC www.investis.com [Source type: News]

^ The amount of preference dividends that is deducted from the net profit for the period is: .
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

^ IFRS 8 applies to annual financial statement periods beginning on or after 1 January 2009, with early adoption permitted.
  • International financial reporting standards (IFRS and IAS) 9 January 2010 19:35 UTC www.cpaaustralia.com.au [Source type: News]

Financial capital maintenance can be measured in either Nominal monetary units or units of constant purchasing power.
(b) Physical capital maintenance. .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, after excluding any distributions to, and contributions from, owners during the period.^ If control over the future economic benefits from an intangible asset is achieved through legal rights that have been granted for a finite period, the useful life of the intangible asset should not exceed the period of the legal rights unless: .
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

^ Defined contribution plans are post-employment benefit plans under which an enterprise pays fixed contributions into a separate entity (a fund) and will have no legal or constructive obligation to pay further contributions if the fund does not hold sufficient assets to pay all employee benefits relating to employee service in the current and prior periods.
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

^ Under IFRS operating profit before exceptional items is reduced by #8.4m in the period to 27 February 2005 compared to the previous UK GAAP presentation.
  • IFRS (Luminar) 29 September 2009 16:016 UTC www.advfn.com [Source type: Reference]

Par. 105. The concept of capital maintenance is concerned with how an entity defines the capital that it seeks to maintain. .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; it is a prerequisite for distinguishing between an entity’s return on capital and its return of capital; only inflows of assets in excess of amounts needed to maintain capital may be regarded as profit and therefore as a return on capital.^ Public benefit entities are entities whose primary objective is to provide goods or services for a community or a social benefit, and where any risk capital has been provided with a view to supporting that primary objective rather than for a financial return to equity shareholders.
  • Part 4: Planning for conversion to the New Zealand equivalents of International Financial Reporting Standards — Office of the Auditor-General New Zealand 9 January 2010 19:35 UTC www.oag.govt.nz [Source type: FILTERED WITH BAYES]

^ Any difference between the amount recorded as share capital issued plus any additional consideration in the form of cash or other assets and the amount recorded for the share capital acquired should be adjusted against equity.
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

^ An unconditional government grant related to a biological asset measured at its fair value less estimated point-of-sale costs should be recognised as income when, and only when, the government grant becomes receivable.
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

.Hence, profit is the residual amount that remains after expenses (including capital maintenance adjustments, where appropriate) have been deducted from income.^ Adjustments to depreciation and amortisation, impairment charges, and other amounts, determined under paragraphs 5 and 6 of this interpretation, should be included in net profit or loss in the respective classification of income or expense presented on the face of the income statement.
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

^ Some enterprises adopt a different format for the income statement which results in different amounts being disclosed instead of the cost of inventories recognised as an expense during the period.
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

^ The amount of net profit attributable to preference shareholders, including preference dividends for the period, is deducted from the net profit for the period (or added to the net loss for the period) in order to calculate the net profit or loss for the period attributable to ordinary shareholders.
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

.If expenses exceed income the residual amount is a loss.^ Some enterprises adopt a different format for the income statement which results in different amounts being disclosed instead of the cost of inventories recognised as an expense during the period.
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

^ Current and deferred tax should be recognised as income or an expense and included in the net profit or loss for the period, except to the extent that the tax arises from: .
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

^ This means the originator is exposed to the majority of loss risk and residual income therefore falling foul of both SIC 12 and IAS 39.
  • UK looks to international accounting standards - International Financial Law Review - The 2005 Guide to Structured Finance 29 September 2009 17:58 UTC www.iflr.com [Source type: FILTERED WITH BAYES]

Par. .106. The physical capital maintenance concept requires the adoption of the current cost basis of measurement.^ If, however, replacement cost is higher than both net realisable value and present value, the higher of net realisable value and present value is usually used as the measurement basis.
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

^ When the fair value of a security falls to a level lower than its cost basis at the measurement date, this should trigger a test to determine if the impairment is other than temporary.
  • Top Accounting and Reporting Challenges 2009 - Somerset CPAs - Indianapolis, Indiana 9 January 2010 19:35 UTC www.somersetcpas.com [Source type: FILTERED WITH BAYES]

^ The percentage of completion method is applied on a cumulative basis in each accounting period to the current estimates of contract revenue and contract costs.
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

.The financial capital maintenance concept, however, does not require the use of a particular basis of measurement.^ IFRS 7 for investment funds - International Financial Reporting Standards In recent years the techniques used by entities for measuring and managing their exposure to risks arising from financial instruments have evolved, and new risk management concepts and approaches have gained acceptance.
  • KPMG China [ Audit and accounting - International Financial Reporting Standards ] 9 January 2010 19:35 UTC www.kpmg.com.cn [Source type: News]

^ If, however, replacement cost is higher than both net realisable value and present value, the higher of net realisable value and present value is usually used as the measurement basis.
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

^ Uncertainty justifies estimating the useful life of an intangible asset on a prudent basis, but it does not justify choosing a life that is unrealistically short.
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

.Selection of the basis under this concept is dependent on the type of financial capital that the entity is seeking to maintain.^ All Australian entities preparing financial reports under the Corporations Act 2001 must comply with the Australian equivalents to IFRS for financial years beginning on or after 1 January 2005.
  • International Financial Reporting Standards: overview 9 January 2010 19:35 UTC www.ato.gov.au [Source type: General]

^ Equity compensation benefits are employee benefits under which either: employees are entitled to receive equity financial instruments issued by the enterprise (or its parent); or the amount of the enterprise's obligation to employees depends on the future price of equity financial instruments issued by the enterprise.
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

^ In 2004, when legislation extending the financial reforms was under consideration, the Treasury was both the sponsoring department of the proposed legislation and advisor to the parliamentary select committee considering the legislation.
  • Globalization: governmental accounting and International Financial Reporting Standards -- Robb and Newberry 5 (4): 725 -- Socio-Economic Review 9 January 2010 19:35 UTC ser.oxfordjournals.org [Source type: FILTERED WITH BAYES]

Par. .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.^ Information reflecting the effects of changing prices .
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

^ The reliable determination of deferred tax assets and liabilities on a discounted basis requires detailed scheduling of the timing of the reversal of each temporary difference.
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

^ To allow accounting changes to be reflected as of an interim date within the financial year would allow two differing accounting policies to be applied to a particular class of transactions within a single financial year.
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

.In general terms, 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.^ Disclosure Checklist The Disclosure Checklist reflects IFRSs in issue at 1 June 2009 that are required to be applied by an entity with an annual period beginning on or after 1 January 2009.
  • KPMG China [ Audit and accounting - International Financial Reporting Standards ] 9 January 2010 19:35 UTC www.kpmg.com.cn [Source type: News]

^ As used here, the term also covers some territorial entities that are not states but for which statistical data are maintained on a separate and independent basis.
  • IMF Global Financial Stability Report -- Navigating the Financial Challenges Ahead -- October 2009 -- Contents 9 January 2010 19:35 UTC www.imf.org [Source type: Academic]

^ Entities were given the option to apply the new standards from reporting periods beginning on or after 1 January 2005.
  • 2.1 The transition to New Zealand equivalents to International Financial Reporting Standards — Office of the Auditor-General New Zealand 9 January 2010 19:35 UTC www.oag.govt.nz [Source type: FILTERED WITH BAYES]

.Any amount over and above that required to maintain the capital at the beginning of the period is profit.^ Disclosure Checklist The Disclosure Checklist reflects IFRSs in issue at 1 June 2009 that are required to be applied by an entity with an annual period beginning on or after 1 January 2009.
  • KPMG China [ Audit and accounting - International Financial Reporting Standards ] 9 January 2010 19:35 UTC www.kpmg.com.cn [Source type: News]

^ IFRS: An Overview August 2009 This publication provides an executive summary of the key requirements of IFRSs in issue at 1 August 2009 that are applicable for financial periods beginning on or after 1 January 2009.
  • KPMG China [ Audit and accounting - International Financial Reporting Standards ] 9 January 2010 19:35 UTC www.kpmg.com.hk [Source type: News]

^ The amount of net profit attributable to preference shareholders, including preference dividends for the period, is deducted from the net profit for the period (or added to the net loss for the period) in order to calculate the net profit or loss for the period attributable to ordinary shareholders.
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

Par. .108. Under the concept of financial capital maintenance where capital is defined in terms of nominal monetary units, profit represents the increase in nominal money capital over the period.^ Monetary items are not restated because they are already expressed in terms of the monetary unit current at the balance sheet date.
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

^ Therefore, if the discount rate includes the effect of price increases due to general inflation, future cash flows are estimated in nominal terms.
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

^ ED-96 uses the concept of an “issuer” as defined in section 4 of the Financial Reporting Act 1993.
  • Part 4: Planning for conversion to the New Zealand equivalents of International Financial Reporting Standards — Office of the Auditor-General New Zealand 9 January 2010 19:35 UTC www.oag.govt.nz [Source type: FILTERED WITH BAYES]

.Thus, increases in the prices of assets held over the period, conventionally referred to as holding gains, are, conceptually, profits.^ Subsidiary conditions may also be attached restricting the type or location of the assets or the periods during which they are to be acquired or held.
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

^ Rewards may be represented by the expectation of profitable operation over the asset's economic life and of gain from appreciation in value or realisation of a residual value.
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

^ Dimension Data Holdings plc reports 140% increase in operating profit .
  • Dimension Data :: Adoption of International Financial Reporting Standards 9 January 2010 19:35 UTC www.dimensiondata.com [Source type: FILTERED WITH BAYES]

.They may not be recognised as such, however, until the assets are disposed of in an exchange transaction.^ Such revenues are recognised when they occur.
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

^ However, under the EC regulation, EU member states may permit companies to defer adoption of IFRS until 2007 if their shares currently trade on a U.S. stock exchange and they use U.S. GAAP (see “ Players and Roles ”).

^ The cost of an acquisition is allocated to the identifiable assets and liabilities recognised under paragraph 26 by reference to their fair values at the date of the exchange transaction.
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

.When the concept of financial capital maintenance is defined in terms of constant purchasing power units, profit represents the increase in invested purchasing power over the period.^ ED-96 uses the concept of an “issuer” as defined in section 4 of the Financial Reporting Act 1993.
  • Part 4: Planning for conversion to the New Zealand equivalents of International Financial Reporting Standards — Office of the Auditor-General New Zealand 9 January 2010 19:35 UTC www.oag.govt.nz [Source type: FILTERED WITH BAYES]

^ Term used to refer to companies tapping the stock market for the first time as part of a capital increase or reallocation.
  • Banking and Stock Glossary 29 September 2009 17:58 UTC www.db.com [Source type: FILTERED WITH BAYES]

^ The auditor adds credibility to the financial statements, increasing the confidence of capital market participants who rely on the information.
  • The Development of Financial Accounting and Reporting Standards 9 January 2010 19:35 UTC highered.mcgraw-hill.com [Source type: FILTERED WITH BAYES]

.Thus, 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.^ For the purpose of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (Cash Generating Units).
  • Transition to International Financial Reporting Standards 9 January 2010 19:35 UTC www.iqep.com [Source type: FILTERED WITH BAYES]

^ In macroeconomic terms, inflation is a lasting rise in the general level of prices.
  • Banking and Stock Glossary 29 September 2009 17:58 UTC www.db.com [Source type: FILTERED WITH BAYES]

^ It is the plan sponsor's fiduciary responsibility to select a mix of assets that, combined with the desired level of plan contributions, will generate sufficient returns to ensure that liabilities are funded.
  • Recent Trends in Canadian Defined-Benefit ...-Summer 2005-Bank of Canada Review-Periodicals- Publications and Research- Bank of Canada 20 November 2009 7:19 UTC www.bank-banque-canada.ca [Source type: FILTERED WITH BAYES]

.The rest of the increase is treated as a capital maintenance adjustment and, hence, as part of equity.^ Term used to refer to companies tapping the stock market for the first time as part of a capital increase or reallocation.
  • Banking and Stock Glossary 29 September 2009 17:58 UTC www.db.com [Source type: FILTERED WITH BAYES]

^ The amount of the adjustment arising on the restatement or elimination of accumulated depreciation forms part of the increase or decrease in carrying amount which is dealt with in accordance with paragraphs 37 and 38.
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

Par. .109. Under the concept of physical capital maintenance when capital is defined in terms of the physical productive capacity, profit represents the increase in that capital over the period.^ Term used to refer to companies tapping the stock market for the first time as part of a capital increase or reallocation.
  • Banking and Stock Glossary 29 September 2009 17:58 UTC www.db.com [Source type: FILTERED WITH BAYES]

^ Turkmen Farmers Learn How to Increase Poultry Production Profits .
  • USAID, TURKMENISTAN TAKE ANOTHER STEP TOWARDS MEETING INTERNATIONAL FINANCIAL REPORTING STANDARDS 9 January 2010 19:35 UTC centralasia.usaid.gov [Source type: FILTERED WITH BAYES]

.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; hence, they are treated as capital maintenance adjustments that are part of equity and not as profit.^ Perfectly designed for a harmonious balance between form and function, these products deliver the highest levels of safety, comfort and style - all at affordable prices.
  • Financial Content - Financial Content Provider - Financial Data Provider 9 January 2010 19:35 UTC studio-5.financialcontent.com [Source type: General]

^ In addition, general topic sessions affecting all entity types will be presented by IFRS accounting issues.
  • BDO Canada: IFRS 9 January 2010 19:35 UTC www.bc.bdo.ca [Source type: News]

^ All unaffected obligations on the activity statement should be paid by the due date unless the client can clearly demonstrate that those other liabilities are also affected by IFRS. .
  • International Financial Reporting Standards: guidelines for reporting taxation obligations 9 January 2010 19:35 UTC ato.gov.au [Source type: FILTERED WITH BAYES]

Par. .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.^ The concept has been readily understood by preparers and users of financial statements.
  • UK looks to international accounting standards - International Financial Law Review - The 2005 Guide to Structured Finance 29 September 2009 17:58 UTC www.iflr.com [Source type: FILTERED WITH BAYES]

^ GAAP in preparing the company’s financial statements.
  • The Development of Financial Accounting and Reporting Standards 9 January 2010 19:35 UTC highered.mcgraw-hill.com [Source type: FILTERED WITH BAYES]

^ IFRS are issued by the International Accounting Standards Board in an effort to increase global comparability of financial statements and results.
  • Financial Content - Financial Content Provider - Financial Data Provider 9 January 2010 19:35 UTC studio-5.financialcontent.com [Source type: News]

.Different accounting models exhibit different degrees of relevance and reliability and, as in other areas, management must seek a balance between relevance and reliability.^ Discrepancies among reports based on different standards must be accounted for and explained, reporting must satisfy multiple sets of local and country GAAP, and statutory reporting must remain consistent with accurate management reporting.
  • Managing the Transition to International Financial Reporting Standards sponsored by Oracle Corporation 9 January 2010 19:35 UTC cramsession.bitpipe.com [Source type: FILTERED WITH BAYES]

^ Other areas where NZ IFRS is resulting in changes to preliminary NZ IFRS opening balance sheets include: .
  • 2.1 The transition to New Zealand equivalents to International Financial Reporting Standards — Office of the Auditor-General New Zealand 9 January 2010 19:35 UTC www.oag.govt.nz [Source type: FILTERED WITH BAYES]

^ Business-style accrual accounting undermines the fundamental constitutional principle of democratic control A Westminster parliamentary model of democracy relies on a separation and balancing of power between the parliament (the legislature), the executive government and the judiciary.
  • Globalization: governmental accounting and International Financial Reporting Standards -- Robb and Newberry 5 (4): 725 -- Socio-Economic Review 9 January 2010 19:35 UTC ser.oxfordjournals.org [Source type: FILTERED WITH BAYES]

.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.^ GAAP in preparing the company’s financial statements.
  • The Development of Financial Accounting and Reporting Standards 9 January 2010 19:35 UTC highered.mcgraw-hill.com [Source type: FILTERED WITH BAYES]

^ Presentation of financial statements .
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

^ Financial statement presentation .
  • IFRS Courses in Canada ~ IASeminars: specialists in IFRS & US GAAP training 29 September 2009 16:016 UTC www.iaseminars.com [Source type: Reference]

.At the present time, it is not the intention of the Board of IASC to prescribe a particular model other than in exceptional circumstances, such as for those entities reporting in the currency of a hyperinflationary economy.^ A parent that reports in the currency of a hyperinflationary economy may have subsidiaries that also report in the currencies of hyperinflationary economies.
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

^ Financial reporting in hyperinflationary economies .
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

^ Foreign currency is a currency other than the reporting currency of an enterprise.
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

This intention will, however, be reviewed in the light of world developments.[3]

Requirements of IFRS

IFRS financial statements consist of (IAS1.8)
.Comparative information is provided for the previous reporting period (IAS 1.36).^ The main objective of reporting is to provide information, primarily for investors, to meet the basic criteria of comprehensibility, relevance to decision-making, comparability and reliability.
  • Banking and Stock Glossary 29 September 2009 17:58 UTC www.db.com [Source type: FILTERED WITH BAYES]

^ Following the update in the 2008 budget, government bodies will be required to adopt International Financial Reporting Standards (IFRS) for their 2009/10 accounts and will also be required to restate 2008/09 accounts using IFRS to provide comparative information.
  • IFRS Conversion - PwC UK 29 September 2009 16:016 UTC www.pwc.co.uk [Source type: News]

^ Paragraphs 116 and 117 of IAS 36, impairment of assets, set out certain disclosure requirements for reporting impairment losses by segment.
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

.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 (IFRS1.7).^ This standard permits companies adopting IFRS for the first time to take certain exemptions from the full requirements of IFRS during the transition period.
  • Transition to International Financial Reporting Standards 9 January 2010 19:35 UTC www.iqep.com [Source type: FILTERED WITH BAYES]
  • Transition to International Financial Reporting Standards 9 January 2010 19:35 UTC www.imgtec.com [Source type: FILTERED WITH BAYES]

^ When do the German Accounting Standards apply for the first time?
  • Frequently Asked Questions (FAQ) about GASC 29 September 2009 17:58 UTC www.standardsetter.de [Source type: FILTERED WITH BAYES]

^ IASs are first applied in full as the primary accounting basis; and .
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

.On 6 September 2007, the IASB issued a revised IAS 1 Presentation of Financial Statements.^ IASB issues a revised version of IFRS 1.
  • AICPA | www.IFRS.com : Updates : IASB 29 September 2009 17:58 UTC www.ifrs.com [Source type: FILTERED WITH BAYES]

^ IAS 1, presentation of financial statements, requires certain disclosures if: .
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

^ Reference: IAS 1, presentation of financial statements (revised 1997).
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

The main changes from the previous version are to require that an entity must:
.
  • present all non-owner changes in equity (that is, 'comprehensive income' ) either in one statement of comprehensive income or in two statements (a separate income statement and a statement of comprehensive income).^ Information to be presented either on the face of the income statement or in the notes .
    • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

    ^ The statement of changes in equity 48 .
    • Pearson Education - International Financial Reporting 9 January 2010 19:35 UTC www.pearsoned.co.uk [Source type: Reference]

    ^ This statement is critical to our constructing and understanding comprehensive income, especially in light of the sanctioned ability to defer certain gains and losses.
    • First Time Application of International Financial Reporting Standards 9 January 2010 19:35 UTC www.cfainstitute.org [Source type: FILTERED WITH BAYES]

    Components of comprehensive income may not be presented in the statement of changes in equity.
  • 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 an accounting
  • 'balance sheet' will become 'statement of financial position'
  • 'income statement' will become 'statement of comprehensive income'
  • 'cash flow statement' will become 'statement of cash flows'.
.The revised IAS 1 is effective for annual periods beginning on or after 1 January 2009. Early adoption is permitted.^ IAS 14 (revised) is effective for accounting periods beginning on or after 1 July 1998.
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

^ IAS 34 is effective for accounting periods beginning on or after 1 January 1999.
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

^ The Standard is effective for accounting periods beginning on or after 1 January 1999.
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

IASB current projects

[6]. .Much of its work is directed at convergence with US GAAP.^ In this context, the London-based IASCF is committed to work with its US counterpart on achieving technical convergence of accounting standards.
  • REPORT Report on International Financial Reporting Standards (IFRS) and the Governance of the International Accounting Standards Board (IASB) - A6-0032/2008 9 January 2010 19:35 UTC www.europarl.europa.eu [Source type: FILTERED WITH BAYES]

^ It is not clear at this time how the Codification will fit into the FASB’s plans to converge US GAAP with IFRS in 2011.
  • Top Accounting and Reporting Challenges 2009 - Somerset CPAs - Indianapolis, Indiana 9 January 2010 19:35 UTC www.somersetcpas.com [Source type: FILTERED WITH BAYES]

Adoption of IFRS

.IFRS are used in many parts of the world, including the European Union, Hong Kong, Australia, Malaysia, Pakistan, GCC countries, Russia, South Africa, Singapore and Turkey.^ By 2011, Canada will move to the same accounting standards as are used by publicly accountable enterprises in the EU and many other countries around the world.
  • KPMG in Canada | International Financial Reporting Standards 9 January 2010 19:35 UTC www.kpmg.ca [Source type: News]

^ Imagination Technologies Group plc (‘the Group’) will be reporting its financial results in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union from 1 April 2005.
  • Transition to International Financial Reporting Standards 9 January 2010 19:35 UTC www.imgtec.com [Source type: FILTERED WITH BAYES]

^ This solution is promoted by key reformers from both countries, and through various global bodies, including IFAC, the World Bank and the International Monetary Fund (IMF).
  • Globalization: governmental accounting and International Financial Reporting Standards -- Robb and Newberry 5 (4): 725 -- Socio-Economic Review 9 January 2010 19:35 UTC ser.oxfordjournals.org [Source type: FILTERED WITH BAYES]

.As of 27 August 2008, more than 113 countries around the world, including all of Europe, currently require or permit IFRS reporting.^ IFRS has been heavily adopted around the world.
  • IFRS Blog: IFRS for Private Entities 29 September 2009 16:016 UTC blog.ifrs.com [Source type: General]

^ International Financial Reporting Standard regime requires more detailed disclosures on risk management, insider related transactions and changes in accounting policies than obtained under the local Statements of Accounting Standards (SAS).

^ IFRS: An Overview August 2009 This publication provides an executive summary of the key requirements of IFRSs in issue at 1 August 2009 that are applicable for financial periods beginning on or after 1 January 2009.
  • KPMG China [ Audit and accounting - International Financial Reporting Standards ] 9 January 2010 19:35 UTC www.kpmg.com.hk [Source type: News]

.Approximately 85 of those countries require IFRS reporting for all domestic, listed companies.^ Illustrative financial statements – IFRS and UK GAAP 2009 Example sets of financial statements for the year ended 31 December 2008, illustrating the required disclosure and presentation for UK groups and UK companies reporting under IFRS or UK GAAP. .
  • IFRS Publications - PwC UK 29 September 2009 16:016 UTC www.pwc.co.uk [Source type: News]

^ If an enterprise publishes a complete set of financial statements in its interim financial report, the form and content of those statements should conform to the requirements of IAS 1 for a complete set of financial statements.
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

^ Despite this, it is possible that the national listing authorities in member states might choose to require such companies to use IFRS under their listing rules.
  • UK looks to international accounting standards - International Financial Law Review - The 2005 Guide to Structured Finance 29 September 2009 17:58 UTC www.iflr.com [Source type: FILTERED WITH BAYES]

[7]

Australia

.The Australian Accounting Standards Board (AASB) has issued 'Australian equivalents to IFRS' (A-IFRS), numbering IFRS standards as AASB 1-8 and IAS standards as AASB 101 - 141. Australian equivalents to SIC and IFRIC Interpretations have also been issued, along with a number of 'domestic' standards and interpretations.^ INTERNATIONAL ACCOUNTING STANDARD IAS 15 .
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

^ INTERNATIONAL ACCOUNTING STANDARD IAS 11 .
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

^ IFRS as generic term consist of International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), interpretations of International Financial Reporting Interpretations Committee (IFRIC) and interpretations of the Standing Interpretations Committee (SIC).
  • Frequently Asked Questions (FAQ) about GASC 29 September 2009 17:58 UTC www.standardsetter.de [Source type: FILTERED WITH BAYES]

These pronouncements replaced previous Australian generally accepted accounting principles with effect from annual reporting periods beginning on or after 1 January 2005 (i.e. 30 June 2006 was the first report prepared under IFRS-equivalent standards for June year ends). .To this end, Australia, along with Europe and a few other countries, was one of the initial adopters of IFRS for domestic purposes (in the developed world).^ By 2011, Canada will move to the same accounting standards as are used by publicly accountable enterprises in the EU and many other countries around the world.
  • KPMG in Canada | International Financial Reporting Standards 9 January 2010 19:35 UTC www.kpmg.ca [Source type: News]

^ This article urges those in other countries to consider constitutional and political implications before proceeding with this development.
  • Globalization: governmental accounting and International Financial Reporting Standards -- Robb and Newberry 5 (4): 725 -- Socio-Economic Review 9 January 2010 19:35 UTC ser.oxfordjournals.org [Source type: FILTERED WITH BAYES]

^ Neo-liberal reformers in both New Zealand and Australia have been labelled more ‘fanatical’ than reformers in other countries ( Pusey, 1991 , p.
  • Globalization: governmental accounting and International Financial Reporting Standards -- Robb and Newberry 5 (4): 725 -- Socio-Economic Review 9 January 2010 19:35 UTC ser.oxfordjournals.org [Source type: FILTERED WITH BAYES]

.It must be acknowledged, however, that IFRS and primarily IAS have been part and parcel of accounting standard package in the developing world for many years since the relevant accounting bodies were more open to adoption of international standards for many reasons including that of capability.^ INTERNATIONAL ACCOUNTING STANDARD IAS 15 .
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

^ INTERNATIONAL ACCOUNTING STANDARD IAS 11 .
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

^ INTERNATIONAL ACCOUNTING STANDARD IAS 23 (REVISED 1993) .
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

.The AASB has made certain amendments to the IASB pronouncements in making A-IFRS, however these generally have the effect of eliminating an option under IFRS, introducing additional disclosures or implementing requirements for not-for-profit entities, rather than departing from IFRS for Australian entities.^ CSA staff have provided guidance on the annual and interim disclosures in which companies should provide discussion and analysis of the expected effects of new accounting policies relating to the changeover to IFRS. For most companies, these disclosures will begin in FY 2008.
  • KPMG in Canada | International Financial Reporting Standards 9 January 2010 19:35 UTC www.kpmg.ca [Source type: News]

^ Disclosure Checklist The Disclosure Checklist reflects IFRSs in issue at 1 June 2009 that are required to be applied by an entity with an annual period beginning on or after 1 January 2009.
  • KPMG China [ Audit and accounting - International Financial Reporting Standards ] 9 January 2010 19:35 UTC www.kpmg.com.cn [Source type: News]

^ International Financial Reporting Standard regime requires more detailed disclosures on risk management, insider related transactions and changes in accounting policies than obtained under the local Statements of Accounting Standards (SAS).

Accordingly, for-profit entities that prepare financial statements in accordance with A-IFRS are able to make an unreserved statement of compliance with IFRS.
The AASB continues to mirror changes made by the IASB as local pronouncements. .In addition, over recent years, the AASB has issued so-called 'Amending Standards' to reverse some of the initial changes made to the IFRS text for local terminology differences, to reinstate options and eliminate some Australian-specific disclosure.^ Special additional issues, called IFRS Briefing Sheets , will be published to report new exposure drafts and standards issued by the IASB, and for any other relevant developments affecting current and future IFRS reporters.
  • = KPMG Singapore: Newsletter = 29 September 2009 17:58 UTC www.kpmg.com.sg [Source type: Academic]

^ The IASB has ambitious plans to facilitate the convergence of local and country standards with IFRS. Unexpected issues are certain to arise during this worldwide implementation, and unforeseen circumstances will require that the standards be adjusted and refined.
  • Managing the Transition to International Financial Reporting Standards sponsored by Oracle Corporation 9 January 2010 19:35 UTC cramsession.bitpipe.com [Source type: FILTERED WITH BAYES]

^ There can be country and company specific differences in application of IFRS. While convergence without adoption will not eliminate all differences, we need to weigh having some remaining differences against the costs and risks associated with a change in standards.
  • IFRS Blog: IFRS: Convergence or Adoption 29 September 2009 16:016 UTC blog.ifrs.com [Source type: FILTERED WITH BAYES]

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 will be required for Canadian publicly accountable profit-oriented enterprises for financial periods beginning on or after 1 January 2011. This includes public companies and other “profit-oriented enterprises that are responsible to large or diverse groups of shareholders.”[8]

European Union

All listed EU companies have been required to use IFRS since 2005.
.In order to be approved for use in the EU, standards must be endorsed by the Accounting Regulatory Committee (ARC), which includes representatives of member state governments and is advised by a group of accounting experts known as the European Financial Reporting Advisory Group.^ This Standard deals with accounting and reporting by the plan to all participants as a group.
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

^ International Financial Reporting Standard regime requires more detailed disclosures on risk management, insider related transactions and changes in accounting policies than obtained under the local Statements of Accounting Standards (SAS).

^ In November 2007, the SEC eliminated the longstanding requirement to reconcile financial statements to U.S. Generally Accepted Accounting Principles (U.S. GAAP) for those foreign private issuers that use IFRS, as published by the International Accounting Standards Board (IASB).
  • International Financial Reporting Standards - a knol by Greg 9 January 2010 19:35 UTC knol.google.com [Source type: FILTERED WITH BAYES]

.As a result IFRS as applied in the EU may differ from that used elsewhere.^ Techniques for the measurement of the cost of inventories, such as the standard cost method or the retail method, may be used for convenience if the results approximate cost.
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

^ The adoption of IFRS will result in some changes to U3O8 Corp's accounting policies that are applied in the recognition, measurement and disclosure of balances and transactions in its financial statements.
  • U3O8 Corp. to Early Adopt International Financial Reporting Standards in 2010 - news from Boston.com 9 January 2010 19:35 UTC finance.boston.com [Source type: FILTERED WITH BAYES]

^ The gain or loss may be estimated by applying the change in a general price index to the weighted average for the period of the difference between monetary assets and monetary liabilities.
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

.Parts of the standard IAS 39: Financial Instruments: Recognition and Measurement were not originally approved by the ARC. IAS 39 was subsequently amended, removing the option to record financial liabilities at fair value, and the ARC approved the amended version.^ IAS 39 Financial Instruments: Recognition and Measurement Chapter 26.
  • eBooks - International Financial Reporting Standards 9 January 2010 19:35 UTC www.ebook.edu.vn [Source type: Academic]

^ Subsequent measurement of financial assets182 .
  • Pearson Education - International Financial Reporting 9 January 2010 19:35 UTC www.pearsoned.co.uk [Source type: Reference]

^ The amendments replace references to IAS 25, accounting for investments, by references to IAS 39, financial instruments: recognition and measurement.
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

.The IASB is working with the EU to find an acceptable way to remove a remaining anomaly in respect of hedge accounting.^ The EU decision to oblige publicly traded EU companies to use international accounting standards significantly changed the context for the IASCF/IASB .
  • REPORT Report on International Financial Reporting Standards (IFRS) and the Governance of the International Accounting Standards Board (IASB) - A6-0032/2008 9 January 2010 19:35 UTC www.europarl.europa.eu [Source type: FILTERED WITH BAYES]

^ The IASB works together with national standard-setting bodies (DRSC in Germany, FASB in the U.S.A.) to promote the harmonization of national rules with international accounting standards.
  • Banking and Stock Glossary 29 September 2009 17:58 UTC www.db.com [Source type: FILTERED WITH BAYES]

^ Expected future developments (update on the IASB-FASB convergence project, status of global accounting convergence, Exposure Drafts, other IASB projects and work agenda).
  • IFRS Courses in Canada ~ IASeminars: specialists in IFRS & US GAAP training 29 September 2009 16:016 UTC www.iaseminars.com [Source type: Reference]

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. This IFRS is being considered for adoption for all companies other than banks and DFIs.
^ IAS 34 is effective for accounting periods beginning on or after 1 January 1999.
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

^ IAS 40 became operative for annual financial statements covering periods beginning on or after 1 January 2001.
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

^ The Standard is effective for accounting periods beginning on or after 1 January 1999.
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]


.IFRS-9: Under consideration of the relevant Committee of the Institute (ICAP).^ In 2004, when legislation extending the financial reforms was under consideration, the Treasury was both the sponsoring department of the proposed legislation and advisor to the parliamentary select committee considering the legislation.
  • Globalization: governmental accounting and International Financial Reporting Standards -- Robb and Newberry 5 (4): 725 -- Socio-Economic Review 9 January 2010 19:35 UTC ser.oxfordjournals.org [Source type: FILTERED WITH BAYES]

This IFRS will be effective for the annual periods beginning on or after 1 January 2013.

Russia

.The government of Russia has been implementing a program to harmonize its national accounting standards with IFRS since 1998. Since then twenty new accounting standards were issued by the Ministry of Finance of the Russian Federation aiming to align accounting practices with IFRS. Despite these efforts essential differences between national accounting standards and IFRS remain.^ Accounting standards and actuarial practices .
  • Recent Trends in Canadian Defined-Benefit ...-Summer 2005-Bank of Canada Review-Periodicals- Publications and Research- Bank of Canada 20 November 2009 7:19 UTC www.bank-banque-canada.ca [Source type: FILTERED WITH BAYES]

^ Accounting differences between IFRS and U.S. GAAP will vary.
  • International Financial Reporting Standards - a knol by Greg 9 January 2010 19:35 UTC knol.google.com [Source type: FILTERED WITH BAYES]

^ As with any tax accounting issue, the effort for an IFRS conversion will require close collaboration between finance and tax departments.
  • International Financial Reporting Standards - a knol by Greg 9 January 2010 19:35 UTC knol.google.com [Source type: FILTERED WITH BAYES]

Since 2004 all commercial banks have been obliged to prepare financial statements in accordance with both national accounting standards and IFRS. Full transition to IFRS is delayed and is expected to take place from 2011.

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.
.The IFRS for SMEs may be applied by 'limited interest companies', as defined in the South African Corporate Laws Amendment Act of 2006 (that is, they are not 'widely held'), if they do not have public accountability (that is, not listed and not a financial institution).^ IFRS: An Overview August 2009 This publication provides an executive summary of the key requirements of IFRSs in issue at 1 August 2009 that are applicable for financial periods beginning on or after 1 January 2009.
  • KPMG China [ Audit and accounting - International Financial Reporting Standards ] 9 January 2010 19:35 UTC www.kpmg.com.hk [Source type: News]

^ With this recognition, there is therefore considerable and widespread interest in their management and performance, the quality of their financial statements because they are envisaged to help foster public confidence as well as in evaluating their performance.

^ Accounting practice continues to vary among telecoms companies and further change is now taking place with the introduction of IFRS. This publication considers what policies may be followed within organizations adopting IFRS and what constitutes 'best practice' within the telecoms industry.
  • KPMG China [ Audit and accounting - International Financial Reporting Standards ] 9 January 2010 19:35 UTC www.kpmg.com.cn [Source type: News]

Alternatively, the company may choose to apply full South African Statements of GAAP or IFRS.
.South African Statements of GAAP are entirely consistent with IFRS, except for the exclusion of IFRS 1, First-time adoption of International Financial Reporting Standards.^ Where can one obtain International Financial Reporting Standards?
  • Frequently Asked Questions (FAQ) about GASC 29 September 2009 17:58 UTC www.standardsetter.de [Source type: FILTERED WITH BAYES]

^ GAAP in preparing the company’s financial statements.
  • The Development of Financial Accounting and Reporting Standards 9 January 2010 19:35 UTC highered.mcgraw-hill.com [Source type: FILTERED WITH BAYES]

^ U3O8 Corp's first financial statements prepared in accordance with IFRS .
  • U3O8 Corp. to Early Adopt International Financial Reporting Standards in 2010 - news from Boston.com 9 January 2010 19:35 UTC finance.boston.com [Source type: FILTERED WITH BAYES]

Turkey

.Turkish Accounting Standards Board translated IFRS into Turkish in 2006. Since 2006 Turkish companies listed in Istanbul Stock Exchange are required to prepare IFRS reports.^ International Accounting Standard requires or permits it; or .
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

^ EU law (IAS Regulation EC 1606/2002) requires that the next annual consolidated financial statements of the company, for the year ending 31 March 2006, be prepared in accordance with International Financial Reporting Standards (IFRSs) adopted for use in the EU (“adopted IFRSs”).
  • Transition to International Financial Reporting Standards 9 January 2010 19:35 UTC www.imgtec.com [Source type: FILTERED WITH BAYES]

^ Companies reporting in IFRS issued by the International Accounting Standards Board will be required to provide their interactive data reports starting with fiscal years ending on or after June 15, 2011.
  • Top Accounting and Reporting Challenges 2009 - Somerset CPAs - Indianapolis, Indiana 9 January 2010 19:35 UTC www.somersetcpas.com [Source type: FILTERED WITH BAYES]

Hong Kong

.Starting in 2005, Hong Kong Financial Reporting Standards (HKFRS) are identical to International Financial Reporting Standards.^ Pending edits for knols in this collection: International Financial Reporting Standards .
  • International Financial Reporting Standards - a knol by Greg 9 January 2010 19:35 UTC knol.google.com [Source type: FILTERED WITH BAYES]

^ Submissions for the collection: International Financial Reporting Standards .
  • International Financial Reporting Standards - a knol by Greg 9 January 2010 19:35 UTC knol.google.com [Source type: FILTERED WITH BAYES]

^ Impact of adopting Australian equivalents to International Financial Reporting Standards .
  • Cochlear Annual Report 2006 : Financial Report : Notes to the financial statements : 31. Impact of adopting Australian equivalents to International Financial Reporting Standards 9 January 2010 19:35 UTC corporate.cochlear.com [Source type: Reference]

While Hong Kong had adopted many of the earlier IAS as Hong Kong standards, some had not been adopted, including IAS 32 and IAS 39. And all of the December 2003 improvements and new and revised IFRS issued in 2004 and 2005 will take effect in Hong Kong beginning in 2005.
.Implementing Hong Kong Financial Reporting Standards: The challenge for 2005 (August 2005) sets out a summary of each standard and interpretation, the key changes it makes to accounting in Hong Kong, the most significant implications of its adoption, and related anticipated future developments.^ The setting of accounting and reporting standards often has been characterized as a political process.
  • The Development of Financial Accounting and Reporting Standards 9 January 2010 19:35 UTC highered.mcgraw-hill.com [Source type: FILTERED WITH BAYES]

^ Some changes in accounting policies relate specifically to segment reporting.
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

^ The FASB currently sets accounting standards.
  • The Development of Financial Accounting and Reporting Standards 9 January 2010 19:35 UTC highered.mcgraw-hill.com [Source type: FILTERED WITH BAYES]

There is one Hong Kong standard and several Hong Kong interpretations that do not have counterparts in IFRS. Also there are several minor wording differences between HKFRS and IFRS.[9]

Singapore

.In Singapore the Accounting Standards Committee (ASC) is in charge of standard setting.^ The FASB currently sets accounting standards.
  • The Development of Financial Accounting and Reporting Standards 9 January 2010 19:35 UTC highered.mcgraw-hill.com [Source type: FILTERED WITH BAYES]

^ Most of our companies operate globally – companies need one set of accounting standards to follow in all markets.
  • IFRS Blog: IFRS: Convergence or Adoption 29 September 2009 16:016 UTC blog.ifrs.com [Source type: FILTERED WITH BAYES]

^ The International Accounting Standards Committee encourages publicly traded enterprises to provide interim financial reports that conform to the recognition, measurement, and disclosure principles set out in this Standard.
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

.Singapore closely models its Financial Reporting Standards (FRS) according to the IFRS, with appropriate changes made to suit the Singapore context.^ A 2-day financial training course on international financial reporting standards (IFRS).
  • IFRS-International Financial Reporting Standards Workshop Training Course - Ethan Hathaway 9 January 2010 19:35 UTC www.ethanhathaway.com [Source type: General]

^ The annual reports under the International Financial Reporting Standards (IFRS) .
  • International Financial Reporting 9 January 2010 19:35 UTC bookboon.com [Source type: Academic]

^ IFRS: The quest for a global language KPMG June 2007 UK A range of senior industry, accounting and regulatory figures give their views on the implementation to date of International Financial Reporting Standards, and the challenges that lie ahead.
  • KPMG in Canada | International Financial Reporting Standards 29 September 2009 16:016 UTC www.kpmg.ca [Source type: FILTERED WITH BAYES]

.Before a standard is enacted, consultations with the IASB are made to ensure consistency of core principles.^ IASB should take its decision on the basis of the outcome of the consultations and, given the apparent impact of this, limit the scope of the fair-value principle; .
  • REPORT Report on International Financial Reporting Standards (IFRS) and the Governance of the International Accounting Standards Board (IASB) - A6-0032/2008 9 January 2010 19:35 UTC www.europarl.europa.eu [Source type: FILTERED WITH BAYES]

^ Stresses that consistency in adoption and application is essential to the success of the IFRS, but recalls that these are principle-based standards and that, therefore, consistency should not be pursued to the detriment of professional judgement; .
  • REPORT Report on International Financial Reporting Standards (IFRS) and the Governance of the International Accounting Standards Board (IASB) - A6-0032/2008 9 January 2010 19:35 UTC www.europarl.europa.eu [Source type: FILTERED WITH BAYES]

^ Work with regulators, supervisors and the private sector on an ongoing basis to ensure consistent application and enforcement of high-quality accounting standards.
  • Top Accounting and Reporting Challenges 2009 - Somerset CPAs - Indianapolis, Indiana 9 January 2010 19:35 UTC www.somersetcpas.com [Source type: FILTERED WITH BAYES]

[10]
International Financial Reporting Standards
.International Financial Reporting Standards (IFRS) are Standards, Interpretations and the Framework adopted by the International Accounting Standards Board (IASB).^ In virtually all circumstances, a fair presentation is achieved by compliance in all material respects with applicable International Accounting Standards.
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

^ IFRS: The quest for a global language KPMG June 2007 UK A range of senior industry, accounting and regulatory figures give their views on the implementation to date of International Financial Reporting Standards, and the challenges that lie ahead.
  • KPMG in Canada | International Financial Reporting Standards 29 September 2009 16:016 UTC www.kpmg.ca [Source type: FILTERED WITH BAYES]

^ Economic and Financial Affairs Council of 10 July 2007 on the question of the governance and financing of the IASB and of 11 July 2006 concerning accounting standards and the funding of the IASB, .
  • REPORT Report on International Financial Reporting Standards (IFRS) and the Governance of the International Accounting Standards Board (IASB) - A6-0032/2008 9 January 2010 19:35 UTC www.europarl.europa.eu [Source type: FILTERED WITH BAYES]

.Many of the standards forming part of IFRS are known by the older name of International Accounting Standards (IAS).^ INTERNATIONAL ACCOUNTING STANDARD IAS 15 .
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

^ INTERNATIONAL ACCOUNTING STANDARD IAS 11 .
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

^ INTERNATIONAL ACCOUNTING STANDARD IAS 23 (REVISED 1993) .
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

.IAS were issued between 1973 and 2001 by the Board of the International Accounting Standards Committee (IASC).^ INTERNATIONAL ACCOUNTING STANDARD IAS 15 .
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

^ INTERNATIONAL ACCOUNTING STANDARD IAS 11 .
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

^ INTERNATIONAL ACCOUNTING STANDARD IAS 23 (REVISED 1993) .
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

.On 1 April 2001, the new IASB took over from the IASC the responsibility for setting International Accounting Standards.^ INTERNATIONAL ACCOUNTING STANDARD IAS 15 .
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

^ INTERNATIONAL ACCOUNTING STANDARD IAS 11 .
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

^ International accounting standards .
  • BTPLC Annual Report 2004 - Financial review 9 January 2010 19:35 UTC www.btplc.com [Source type: FILTERED WITH BAYES]
  • UK looks to international accounting standards - International Financial Law Review - The 2005 Guide to Structured Finance 29 September 2009 17:58 UTC www.iflr.com [Source type: FILTERED WITH BAYES]

.During its first meeting the new Board adopted existing IAS and SICs.^ The International Accounting Standards Board (IASB) adopted them in 2001 to replace the earlier International Accounting Standards (IAS) set by the International Accounting Standards Committee.

^ Please note that during this period existing patches will continue to be available on the Hyperion Download Center , however, new patches will be made available through MetaLink 3.
  • Support | Oracle and Hyperion 20 November 2009 7:19 UTC www.oracle.com [Source type: General]

^ When IASB was installed in 2001, it adopted the existing IAS and decided to name any future standards as International Financial Reporting Standards .
  • The Difference Between IFRS and IAS | Deuts.NET 29 September 2009 16:016 UTC deuts.net [Source type: General]

The IASB has continued to develop standards calling the new standards IFRS.
Structure of IFRS
.IFRS are considered a "principles based" set of standards in that they establish broad rules as well as dictating specific treatments.^ It has been suggested that standards should be based on principles, not rules.
  • Uniform Financial Reporting Standards 9 January 2010 19:35 UTC www.nysscpa.org [Source type: FILTERED WITH BAYES]

^ Principles-Based vs. Rules-Based Accounting .
  • Accounting Management Solutions, Inc. - Preparing for IFRS 29 September 2009 16:016 UTC www.amsolutions.net [Source type: FILTERED WITH BAYES]

^ Most world accounting standards mirror U.S. standards that are specific and rules-based versus principle-based.
  • International Financial Reporting Standards Draft Released | AccountingWEB.com 9 January 2010 19:35 UTC www.accountingweb.com [Source type: News]

International Financial Reporting Standards comprise:
  1. International Financial Reporting Standards (IFRS) - standards issued after 2001
  2. International Accounting Standards (IAS) - standards issued before 2001
  3. Interpretations originated from the International Financial Reporting Interpretations Committee (IFRIC) - issued after 2001
  4. Standing Interpretations Committee (SIC) - issued before 2001
.There is also a Framework for the Preparation and Presentation of Financial Statements which describes the principles underlying IFRS...^ Presentation of financial statements .
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

^ Presentation of financial statements 35 .
  • Pearson Education - International Financial Reporting 9 January 2010 19:35 UTC www.pearsoned.co.uk [Source type: Reference]

^ GAAP in preparing the company’s financial statements.
  • The Development of Financial Accounting and Reporting Standards 9 January 2010 19:35 UTC highered.mcgraw-hill.com [Source type: FILTERED WITH BAYES]

IAS 8 Par. 11
."In making the judgement described in paragraph 10, management shall refer to, and consider the applicability of, the following sources in descending order: (a) the requirements and guidance in Standards and Interpretations dealing with similar and related issues; and (b) the definitions, recognition criteria and measurement concepts for assets, liabilities, income and expenses in the Framework."^ International Accounting Standards dealing with similar and related issues; .
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

^ Rather, it requires that an enterprise follow recognition and measurement principles established in other Standards.
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

^ Recognition and measurement: plan assets .
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

Requirements of IFRS IFRS financial statements consist of (IAS1.8)
  1. a Statement of Financial Position
  2. a comprehensive income statement
  3. either a statement of changes in equity (SOCE) or a statement of recognised income or expense ("SORIE")
  4. a cash flow statement or statement of cash flows
  5. notes, including a summary of the significant accounting policies
.Comparative information is provided for the previous reporting period (IAS 1.36).^ The main objective of reporting is to provide information, primarily for investors, to meet the basic criteria of comprehensibility, relevance to decision-making, comparability and reliability.
  • Banking and Stock Glossary 29 September 2009 17:58 UTC www.db.com [Source type: FILTERED WITH BAYES]

^ Following the update in the 2008 budget, government bodies will be required to adopt International Financial Reporting Standards (IFRS) for their 2009/10 accounts and will also be required to restate 2008/09 accounts using IFRS to provide comparative information.
  • IFRS Conversion - PwC UK 29 September 2009 16:016 UTC www.pwc.co.uk [Source type: News]

^ Paragraphs 116 and 117 of IAS 36, impairment of assets, set out certain disclosure requirements for reporting impairment losses by segment.
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

.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 (IFRS1.7).^ This standard permits companies adopting IFRS for the first time to take certain exemptions from the full requirements of IFRS during the transition period.
  • Transition to International Financial Reporting Standards 9 January 2010 19:35 UTC www.iqep.com [Source type: FILTERED WITH BAYES]
  • Transition to International Financial Reporting Standards 9 January 2010 19:35 UTC www.imgtec.com [Source type: FILTERED WITH BAYES]

^ When do the German Accounting Standards apply for the first time?
  • Frequently Asked Questions (FAQ) about GASC 29 September 2009 17:58 UTC www.standardsetter.de [Source type: FILTERED WITH BAYES]

^ IASs are first applied in full as the primary accounting basis; and .
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

.On 6 September 2007, the IASB issued a revised IAS 1 Presentation of Financial Statements.^ IASB issues a revised version of IFRS 1.
  • AICPA | www.IFRS.com : Updates : IASB 29 September 2009 17:58 UTC www.ifrs.com [Source type: FILTERED WITH BAYES]

^ IAS 1, presentation of financial statements, requires certain disclosures if: .
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

^ Reference: IAS 1, presentation of financial statements (revised 1997).
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

The main changes from the previous version are to require that an entity must:
.
  1. present all non-owner changes in equity (that is, 'comprehensive income' ) either in one statement of comprehensive income or in two statements (a separate income statement and a statement of comprehensive income).^ Information to be presented either on the face of the income statement or in the notes .
    • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

    ^ The statement of changes in equity 48 .
    • Pearson Education - International Financial Reporting 9 January 2010 19:35 UTC www.pearsoned.co.uk [Source type: Reference]

    ^ Course topics include: Presentation of the balance sheet/statement of financial position, income statement/statement of comprehensive income, cash flow statement/statement of cash flows and statement of changes in equity (revised IAS 1 Presentation of Financial Statements - statement of comprehensive income) .
    • IFRS Courses in Canada ~ IASeminars: specialists in IFRS & US GAAP training 29 September 2009 16:016 UTC www.iaseminars.com [Source type: Reference]

    Components of comprehensive income may not be presented in the statement of changes in equity.
  2. 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 an accounting
  3. 'balance sheet' will become 'statement of financial position'
  4. 'income statement' will become 'statement of comprehensive income'
  5. 'cash flow statement' will become 'statement of cash flows'.
.The revised IAS 1 is effective for annual periods beginning on or after 1 January 2009. Early adoption is permitted.^ IAS 14 (revised) is effective for accounting periods beginning on or after 1 July 1998.
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

^ IAS 34 is effective for accounting periods beginning on or after 1 January 1999.
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

^ The Standard is effective for accounting periods beginning on or after 1 January 1999.
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

.Adoption of IFRS IFRS are used in many parts of the world, including the European Union, Hong Kong, Australia, Malaysia, Pakistan, GCC countries, Russia, South Africa, Singapore and Turkey.^ Notes the merits of International Financial Reporting Standards (IFRS), which do not just concern technical accounting aspects but also bring benefits to capital markets and to the European Union as a world leader; .
  • REPORT Report on International Financial Reporting Standards (IFRS) and the Governance of the International Accounting Standards Board (IASB) - A6-0032/2008 9 January 2010 19:35 UTC www.europarl.europa.eu [Source type: FILTERED WITH BAYES]

^ Commission to the European Securities Committee (ESC) and to the Parliament on convergence between IFRS and third countries' national Generally Accepted Accounting Principles (GAAPs), .
  • REPORT Report on International Financial Reporting Standards (IFRS) and the Governance of the International Accounting Standards Board (IASB) - A6-0032/2008 9 January 2010 19:35 UTC www.europarl.europa.eu [Source type: FILTERED WITH BAYES]

^ Imagination Technologies Group plc (‘the Group’) will be reporting its financial results in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union from 1 April 2005.
  • Transition to International Financial Reporting Standards 9 January 2010 19:35 UTC www.imgtec.com [Source type: FILTERED WITH BAYES]

.As of 27 August 2008, more than 113 countries around the world, including all of Europe, currently require or permit IFRS reporting.^ IFRS has been heavily adopted around the world.
  • IFRS Blog: IFRS for Private Entities 29 September 2009 16:016 UTC blog.ifrs.com [Source type: General]

^ International Financial Reporting Standard regime requires more detailed disclosures on risk management, insider related transactions and changes in accounting policies than obtained under the local Statements of Accounting Standards (SAS).

^ IFRS: An Overview August 2009 This publication provides an executive summary of the key requirements of IFRSs in issue at 1 August 2009 that are applicable for financial periods beginning on or after 1 January 2009.
  • KPMG China [ Audit and accounting - International Financial Reporting Standards ] 9 January 2010 19:35 UTC www.kpmg.com.hk [Source type: News]

.Approximately 85 of those countries require IFRS reporting for all domestic, listed companies.^ Illustrative financial statements – IFRS and UK GAAP 2009 Example sets of financial statements for the year ended 31 December 2008, illustrating the required disclosure and presentation for UK groups and UK companies reporting under IFRS or UK GAAP. .
  • IFRS Publications - PwC UK 29 September 2009 16:016 UTC www.pwc.co.uk [Source type: News]

^ If an enterprise publishes a complete set of financial statements in its interim financial report, the form and content of those statements should conform to the requirements of IAS 1 for a complete set of financial statements.
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

^ Despite this, it is possible that the national listing authorities in member states might choose to require such companies to use IFRS under their listing rules.
  • UK looks to international accounting standards - International Financial Law Review - The 2005 Guide to Structured Finance 29 September 2009 17:58 UTC www.iflr.com [Source type: FILTERED WITH BAYES]

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 2011. This will be done by revising existing accounting standards to make them compatible with IFRS.
.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...^ Adjustments to the carrying amounts of identifiable assets or liabilities or goodwill or negative goodwill should be disclosed and explained in the financial statements of the period in which the adjustment is made.
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

^ For a business combination which is an acquisition, the following additional disclosures should be made in the financial statements for the period during which the acquisition has taken place: .
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

^ This International Accounting Standard was approved by the IASC Board in February 1998 and became effective for financial statements covering periods beginning on or after 1 January 1999.
  • EUR-Lex - 32003R1725 - EN 20 November 2009 7:19 UTC eur-lex.europa.eu [Source type: Reference]

Japan

The Accounting Standards Board of Japan has agreed to resolve all inconsistencies between the current JP-GAAP and IFRS wholly by 2011. [11]

List of IFRS statements with full text links

The following IFRS statements are currently issued:
.

List of Interpretations with full text links

  • Preface to International Financial Reporting Interpretations (Updated to January 2006)([41] Full Text)
  • IFRIC 1 Changes in Existing Decommissioning, Restoration and Similar Liabilities (Updated to January 2006)([42] Full Text)
  • IFRIC 7 Approach under IAS 29 Financial Reporting in Hyperinflationary Economies (Issued February 2006)([43] Full Text)
  • IFRIC 8 Scope of IFRS 2 (Issued February 2006)([44] Full Text) - has been eliminated with Amendments issued to IFRS 2
  • IFRIC 9 Reassessment of Embedded Derivatives (Issued April 2006)([45] Full Text)
  • IFRIC 10 Interim Financial Reporting and Impairment (Issued November 2006)([46] Full Text)
  • IFRIC 11 IFRS 2-Group and Treasury Share Transactions (Issued November 2006)([47] Full Text) - has been eliminated with Amendments issued to IFRS 2
  • IFRIC 12 Service Concession Arrangements (Issued November 2006)([48] Full Text)
  • IFRIC 13 Customer Loyalty Programmes (Issued in June 2007)([49] Full Text)
  • IFRIC 14 IAS 19 – The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction (issued in July 2007)([50] Full Text)
  • IFRIC 15 Agreements for the Construction of Real Estate (issued in July 2008)
  • IFRIC 16 Hedges of a Net Investment in a Foreign Operation (issued in July 2008)
  • IFRIC 17 Distributions of Non-cash Assets (issued in November 2008)
  • IFRIC 18 Transfers of Assets from Customers (issued in January 2009)
  • SIC 7 Introduction of the Euro (Updated to January 2006)([51] Full Text)
  • SIC 10 Government Assistance-No Specific Relation to Operating Activities (Updated to January 2006)([52] Full Text)
  • SIC 12 Consolidation-Special Purpose Entities (Updated to January 2006)([53] Full Text)
  • SIC 13 Jointly Controlled Entities-Non-Monetary Contributions by Venturers (Updated to January 2006)([54] Full Text)
  • SIC 15 Operating Leases-Incentives (Updated to January 2006)([55] Full Text)
  • SIC 21 Income Taxes-Recovery of Revalued Non-Depreciable Assets (Updated to January 2006)([56] Full Text)
  • SIC 25 Income Taxes-Changes in the Tax Status of an Entity or its Shareholders (Updated to January 2006)([57] Full Text)
  • SIC 27 Evaluating the Substance of Transactions Involving the Legal Form of a Lease (Updated to January 2006)([58] Full Text)
  • SIC 29 Disclosure-Service Concession Arrangements (Updated to January 2006)([59] Full Text)
  • SIC 31 Revenue-Barter Transactions Involving Advertising Services (Updated to January 2006)([60] Full Text)
  • SIC 32 Intangible Assets-Web Site Costs (Updated to January 2006)([61] Full Text)
  • SIC 33 Consolidation and equity method - Potential voting rights and allocation of ownership interests([62] Full Text)

Further reading

.
  • International Accounting Standards Board (2007): International Financial Reporting Standards 2007 (including International Accounting Standards (IAS(tm)) and Interpretations as at 1 January 2007), LexisNexis, ISBN 1-4224-1813-8

See also

References

External links


Citable sentences

Up to date as of December 25, 2010

Here are sentences from other pages on International Financial Reporting Standards, which are similar to those in the above article.








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