Page 126 - DCOM409_CONTEMPORARY_ACCOUNTING

Neha Tikoo, Lovely Professional University Unit 10: IFRS and its Relevance

Unit 10: IFRS and its Relevance Notes

CONTENTS
Objectives
Introduction
10.1 International Accounting Standard Board
10.2 Types of IFRS and their Relevance
10.3 Qualitative Characteristics of IFRS Financial Statements
10.4 Challenges in Implementation of IFRS in India

10.5 Major Difference between Indian Accounting Standards and IFRS
10.6 Summary
10.7 Keywords
10.8 Review Questions
10.9 Further Readings

Objectives

After studying this unit, you will be able to:
Identify the scope of IFRS

Describe the types of IFRS and their relevance
Understand conceptual framework of IASB and IASC
Describe the qualitative characteristics of IFRS
Introduction

The term International Financial Reporting Standards (IFRSs) has both a narrow and a broad
meaning. Narrowly, IFRSs refers to the new numbered series of pronouncements that The
International Accounting Standards Board (IASB) is issuing, as distinct from the International
Accounting Standards (IASs) series issued by its predecessor. More broadly, IFRSs refers to the
entire body of IASB pronouncements, including standards and interpretations approved by the
IASB and IASs interpretations approved by the predecessor International Accounting Standards
Committee.

Did u know? What is the meaning of accounting standards?
It is a set of certain generally accepted rules, principles, concepts and conventions issued
by the Institute of chartered Accountants of India in consultation with other International
Accounting bodies. The purpose of making uniform rules and principles is to make the
preparation and presentation of financial statement easy, relevant, reliable, understandable
and finally comparable. In other words, Accounting standards are the basis of accounting
policies and practices to facilitate the recording of transactions and events in such a way
which can change them into financial statements, to be used by the persons interested in
getting the correct and reliable information with a view to take future decisions.

LOVELY PROFESSIONAL UNIVERSITY 121