With your strong support over all these years www.taxtmi.comteam is proud to introduce another section to the esteemed subscribers and visitors of this site - International Financial Reporting Standards (IFRS). By introducing this new section, we are looking to delve into some of the most complex subjects that matter today’s accounting world. The objective is NOT to provide solutions but to bring out conceptual clarity and thoughts that evoke significant interest to all of us.

It is believed that adoption of IFRS will significantly benefit investors worldwide and these standards will be the governing force that will drive financial reporting in future. It is also expected that cost reduction will be achieved by several multinational organizations since IFRS will eliminate reporting as per country rules and regulations. Today IFRS standards are used in many parts of the world, including the European Union, India, Hong Kong, Australia, Malaysia, Pakistan, GCC countries, Russia, South Africa, Singapore and Turkey.

Approximately 120 nations and reporting jurisdictions permit or require IFRS for domestic listed companies, although approximately 90 countries have fully conformed with IFRS as promulgated by the IASB and include a statement acknowledging such conformity in audit reports.

What is IFRS?

International Financial Reporting Standards (IFRS) are principles-based standards, interpretations and the framework adopted by the International Accounting Standards Board (IASB). Many of the standards forming part of IFRS are known by the older name of International Accounting Standards (IAS). IAS were issued between 1973 and 2001 by the Board of the International Accounting Standards Committee (IASC).

The IASB is currently preparing a suite of new accounting standards covering topics such as Financial Instrument Classification and Measurement, Loan Impairment, Hedging, Consolidation, Offset and Revenue Recognition amongst others. Whilst some of these new regulations are still being finalized and the mandatory effective date is still some years away, many institutions have begun planning for implementation. In addition, IFRIC continue to issue interpretations on existing standards

IFRS are considered a "principles based" set of standards in that they establish broad rules as well as dictating specific treatments.

International Financial Reporting Standards comprise:

• International Financial Reporting Standards (IFRS)— standards issued after 2001
• International Accounting Standards (IAS)— standards issued before 2001
• Standing Interpretations Committee (SIC)— issued before 2001
• Conceptual Framework for Financial Reporting (2010)

In this opening section, we do not want go into deeper concepts but in our subsequent editions we will go into each and every aspect of the formation of IFRS, its various standards and will provide insights to some of the most talked about topics globally.

The IFRS section on www.taxtmi.com to be initiated by:-

1. Mr. Gopal Ji Agarwal, B.Com, FCA, LL.B, DISA (ICAI), IFRS(ICAI)
2. Mr. T. Chandra Sekhar, B.Com, CPA
3. Mr. Surender Gupta, B.Com., FCA, LL.B. DISA (ICAI)

In case you wish to participate / contribute, please feel free to contact us

We look forward to your feedback and as always thank you for your support.

IFRS adoption will harmonise financial reporting across jurisdictions and prompt institutional planning for new accounting standards. Adoption and implementation of IFRS are presented as a global shift toward a principles-based financial reporting architecture intended to harmonise accounting across jurisdictions and reduce multinational reporting costs. IFRS comprises post 2001 IFRS, pre 2001 IAS, SIC interpretations and the Conceptual Framework. The IASB is developing and revising standards on financial instrument classification and measurement, loan impairment, hedging, consolidation, offset and revenue recognition, while interpretations continue to refine existing rules, prompting institutions to plan for future mandatory effective dates.