List of International Financial Reporting Standards in 2024

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What is IFRS (International Financial Reporting Standard)? 

IFRS which stands for International Financial Reporting Standards describes the standard policies in the field of accounting. This defines a certain way of gathering information and presenting a financial report.

IFRS is an accounting standard developed by the International Accounting Standards Board or IASB. IFRS provides common rules in the field of finance and accounting so that business statements are understandable across the international market.

 

The administrative center of IFRS is in London which helps in boosting global economic growth along with transparency, and accountability. This also helps in doing efficient work together.

The reporting period starting on or after 1st 2023 comes under the IFRS 17.  It demands that a corporation must evaluate insurance contracts using current estimates. It takes into account the timing of cash flows and uncertainty surrounding insurance contracts. This will demonstrate clear and comprehensive information regarding a company’s financial status and risk.

List Of IFRS Standards: 

1) Adoption of international financial reporting standards for the first time

It sets out the procedures for a company to follow International Financial Reporting Standards for the first time as the basis for its general financial reporting. This IFRS provides limited exemptions from the general requirement. The purpose is that it can comply with any international financial reporting standards in effect at the end of the initial IFRS reporting period. There are many advantages of applying IFRS in India from the point of view of finance, industry, and investors.

2) Share-Based Payment

This requires a company to recognize share-based payments like issued shares, share options, or share appreciation rights in its financial statements. It consists of cash, other assets, or equity, or communication with employees. It includes specific requirements for cash-settled, equity-settled share-based transactions. As well as the extent to which the entity or supplier has the right to use an equity instrument

3) Business Combinations

This IFRS standard display accounting information when the acquirer gains control of a business (for example, through an acquisition or merger). Such combined transactions are accounted for using the ‘acquisition method’. This generally requires assets acquired and liabilities that can be measured at their fair values ​​at the acquisition date. Principal interest of IFRS is that it facilitates the comparison of different transactions, as data is presented in a single format.

4) Insurance Contracts

With few exceptions, it applies to both the insurance contract(s) issued by an entity and the reinsurance contracts it holds. In the course of the International Accounting Standards Committee’s comprehensive work on insurance contracts, the standard provides a temporary exemption from certain other IFRS requirements. For example, on selecting the accounting policies for insurance contracts, one can get exemptions from International Accounting Standard- 8 Accounting Policies, Changes in Accounting Estimates.

5) Non-current assets held for sale and disposal of business

This IFRS standard says how non-current assets held for sale (or distribution to owners) will be accounted for. Assets held for sale are generally not amortized and are measured at the lower of carrying amount and a fair value free costs to sell.They are presented separately in the statement of financial position. Discontinued business and real estate use also require specific disclosures.

6) Survey and valuation of minerals

It has the effect of allowing entities to adopt the standard for the first time to use accounting policies for the exploration and evaluation of assets that were applied before adopting international financial reporting standards. It also modifies impairment testing of exploration and evaluation assets by introducing different impairment indicators and allowing the carrying amount to be tested at an aggregate level (not greater than a segment).

7) Financial Instrument: Disclosures

It calls for an entity to disclose information approximately the materiality of economic units, and it calls for unique disclosures about the character and significance of the risks posed through the one economic device, each qualitatively and quantitatively

8) Operating Segments

It requires particular classes of entities (essentially those with publicly traded securities) to disclose information about their operating segments, products and services, the geographical areas in which they operate, and their major customers. Information is based on internal management reports, both in the identification of operating segments and measurement of disclosed segment information.

9) Financial Instruments

IFRS standard replaces the International Accounting Standards Committee’s International Accounting Standard 39 Financial Instruments which is Acceptance and Measurement. This includes requirements for acceptance and measurement, loss, acceptance, and safety audits in general.

10) Consolidated financial statements

It sets out the requirements for the preparation and presentation of consolidated financial statements, where companies must consolidate their controlled subsidiaries Control requires disclosure or the right to variable and powerful interest that will be used to influence those returns through the power of the investor.

11) Joint Arrangements

It outlines the accounting by entities that jointly control an arrangement. Joint control involves the contractually agreed sharing of control and arrangements subject to joint control are classified as either a joint venture; representing a share of net assets and equity accounted or a joint operation; representing rights to assets and obligations for liabilities, accounted for accordingly.

12) Disclosure of Interest in other Companies

It is a consolidated disclosure standard requiring a wide range of disclosures about an entity’s interests in subsidiaries, joint arrangements, associates and unconsolidated ‘structured entities’. Disclosures are presented as a series of objectives, with detailed guidance on satisfying those objectives.

13) Fair Value Measurement

It relates to IFRSs that require or permit fair value measurements or disclosures. It provides an IFRS framework for fair value measurements and requires fair value measurements to be disclosed. The standard defines a fair value based on a transaction rather a than value concept and uses a fair value system. Hence, resulting in a market-based rather than company-specific measurement

14) Regulatory deferral accounts

IFRS allows an entity that is the first to adopt international financial reporting standards. It includes both the initial adoption of IFRS and subsequent financial reporting. This is to ‘continue to account, with minimal changes, in accounting deferrals by and pre-GAAP. Statutory securities held in accounts, and movements therein, are presented separately in the statement of financial position. However, in the statement of profit and loss and other comprehensive income, disclosures are required to be specifically revealed

15) Revenue from the contract

It prescribes how and when IFRS reporters will recognize revenue. Reporters require such entities to provide users of financial statements with information on a wide range of relevant issues. The IFRS provides a single principle-based five-step model for use in all contracts with customers. This IFRS standard applies to annual reporting periods starting on or after January 1, 2018.

16) Lease Accounting

It defines how a reporter for International Financial Reporting Standards shall perceive, and reveal leases. The preferred offers an accounting standard for a tenant. In this model, tenants must count on all belongings and liabilities for the rent. This is until the term of the lease is three hundred and sixty-five days. And if the underlying asset is worth much less. While lessees hold to categorize rentals as both running or finance, the IFRS 16 approach to accounting for lessees has modified little from its predecessor, the International Accounting Standard- . 17.

17) Insurance contracts

This says that IFRS 17 is applicable for annual reporting intervals which are starting on or after 1 January 2021. This must be amended to IFRS 9 and IFRS 15 from the Inventory of International Finance. The insurance contract consists of both a service and a financial instrument contract. Many such insurance contracts will ultimately generate cash flow with considerable variability over a long span. 

 

These are the IFRS (International Financial Reporting Standards) issued by using the IASB. International Accounting Standards (IAS) have been issued via its predecessor body IASC from 1973 to 2001. In India, the Accounting Standard Board issued Indian Accounting Standards (Ind AS).This has converged Indian GAAP with International Financial Accounting Standards (IFRS). Both the International Financial Reporting Standards and IAS are strengths.

The following is a list of accounting principles recognized in the IAS

IAS 1: Presentation of financial statements

IAS 1 includes requirements for financial statements and policies, procedures and minimum content requirements. Features include complete financial statements issued annually and include the previous year’s balance sheet. This is a new addition to the list of IFRS standards and IAS standards.

IAS 2: Inventory

The second IAS in the IAS and IFRS list is about the guidance for the determination of the cost formulas of inventories and subsequent recognizing the cost as an expense. This can include any write-down to any other realizable value. 

IAS 7: Statement of Cashflows

Guidelines for the presentation of the data in the announcement of cash flows as consistent with the IFRS requirements. For that IAS standards are described in IAS 7. Cash drift records include cash and cash equivalents of gadgets transformed all through this era.

IAS 8: Accounting Policies, Changes, and Estimate Errors

Accounting treatments covered in IAS eight include criteria for choosing and enhancing accounting rules. This also involves adjusting accounting estimates, disclosing changes in accounting regulations, and correcting obligatory errors.

IAS 10: Events after the reporting duration

IAS 10 units out the circumstances under which an entity can modify its monetary statements. This is for the occasions that manifest after the reporting period. By IAS 10, there’s additional guidance that an entity should offer. This is for the period in which financial statements have been allowed to be mentioned.

IAS 11: Construction contracts

IAS 11 of IFRS affords a benchmark for the accounting of sales and costs associated with production contracts. IAS 11 calls for the effects of a creation settlement, dependable estimates, and contract charges for the portion on the way to be finished at the quit of the reporting period.

IAS 12: Income Taxes

IAS 12 affords an accounting answer for income taxes that consists of each home and overseas tax. This may depend on taxable profits. The requirement for the IAS 12 is to recognize a deferred tax asset or liability. This is for temporary differences along with a few exceptions.

IAS 16: Property, plant and equipment

In this set of IFRS standards, IAS 16 sets out the principles of recognition of cash as property, plant and equipment as assets for measuring cash flows. This is also for measuring the associated depreciation and loss established.

IAS 17: Transfers

International Financial Reporting Standard 15 replaces IAS 16 from the set of IFRS standards. IAS 17 is divided into two categories: financial leases and operating leases. With a financial guarantee, if the contract is significantly moved, both risk and reward can be contingent on ownership.

IAS 18: Revenue

The IAS 18 is superseded by IFRS 15 of the International Financial Reporting Standards list. IAS 18 addresses the right moment and how to recognize and measure revenue. What is Revenue? It is the gross inflow of economic benefits acquired by ordinary activities of an entity during an estimated period. IAS 18 covers income from events relating to the sale of goods, the provision of services, the disposal of company assets by others who pay interest, royalties and dividends.

IAS 19: Employee benefits

In a set of IFRS standards and IAS standards, IAS 19 covers all types of employee benefits except for share-based payments. While International Financial Reporting Standard 2 covers the payment of share-based employee benefits.

 

. IAS 19 in the list of IFRS standards requires the enterprise to recognize a contract when an employee has provided service in trade for future employee benefits and the recognition for an expense when the entity acquires economic benefits arising for the services offered by the employees in exchange for employee perks.

IAS 20: Accounting for Government Grants and the Disclosure of Government Assistance

The IAS 20 in the IAS and IFRS list is about the grants provided by the government, which are transfers of resources given to an enterprise in return for past or future agreements with specific conditions relating to the operating activities of the enterprise. The economic benefit specifically provided to an entity or range of entities qualifying under specific criteria is called government support.

IAS 21: Effects of the Changes in Foreign Exchange Rates

The IAS 21 prescribes how an entity should carry on foreign activities in two ways. This may consist of transactions using foreign currencies, or it may include some international business operations. The principles issued by the IAS 21 in the IFRS standards list are used by the exchange rate/s to report the effects of the changes in it for financial statements.

IAS 23: Debt

IAS 23 of the IAS and IFRS list guides the method of measuring costs for entities. This is the context of particular costs of acquisition and manufacturing or production of goods with an entity’s debt they all pay for it.

 

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