Page 35 - DCOM509_ADVANCED_AUDITING

Advanced Auditing

Notes 2.4.3 Standards of IFRS

International Financial Reporting Standards (IFRS) are principles-based Standards, Interpretations
and the Framework adopted by the International Accounting Standards Board (IASB). IFRS
represent a set of internationally accepted accounting principles used by companies to prepare
financial statements.

The goal with IFRS is to make international comparisons as easy as possible. More than 100
countries around the world currently require or permit IFRS reporting. Approximately 85 of
those countries require IFRS reporting for all domestic, listed companies. All member states of
the EU are required to use IFRS as adopted by the EU for listed companies since 2005. The US is
also gearing towards IFRS. While some countries require all companies to adhere to IFRS,
others merely allow it or try to coordinate their own country’s standards to be similar.
IFRS include the following Standards:

 IFRS 1 First-time Adoption of International Financial Reporting Standards
 IFRS 2 Share-based Payment
 IFRS 3 Business Combinations
 IFRS 4 Insurance Contracts

 IFRS 5 Non-current Assets Held for Sale and Discontinued Operations
 IFRS 6 Exploration for and Evaluation of Mineral Resources
 IFRS 7 Financial Instruments: Disclosures

 IFRS 8 Operating Segments
 IFRS 9 Financial Instruments
 IAS 1 Presentation of Financial Statements
 IAS 2 Inventories
 IAS 7 Statement of Cash Flows

 IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors
 IAS 10 Events after the Reporting Period
 IAS 11 Construction Contracts

 IAS 12 Income Taxes
 IAS 16 Property, Plant and Equipment
 IAS 17 Leases
 IAS 18 Revenue
 IAS 19 Employee Benefits

 IAS 20 Accounting for Government Grants and Disclosure of Government Assistance
 IAS 21 The Effects of Changes in Foreign Exchange Rates
 IAS 23 Borrowing Costs

 IAS 24 Related Party Disclosures
 IAS 26 Accounting and Reporting by Retirement Benefit Plans

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