Page 133 - DCOM409_CONTEMPORARY_ACCOUNTING

Contemporary Accounting

Notes

Self Assessment

Fill in the blanks:
12. IFRS uses ……………..as a measurement base for valuing most of the items of financial
statements.

13. The ………… and reporting requirements under IFRS are completely different from the
Indian reporting requirements.

10.6 Summary

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.
The International Accounting Standards Board (IASB) founded on April 1, 2001 is the
successor of the IASC.
The International Accounting Standards Board is an independent privately-funded
accounting standard board.

IFRS has issued 8 standards and had adopted many of the earlier standards issued by IASC
with and without modifications.

GAAP provides a general framework for financial accounting— objectives, standards,
concepts, assumptions, methods and rules. It is not comparable to the physical laws,
where causes lead to definite results.

The qualitative characteristics will provide assistance when choices have to be made
between reporting policies - whether by preparers, auditors, those participating in the

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