Part I — International Financial Reporting Standards (IFRS) (2024)

IAS 1 — Presentation of Financial Statements IAS 1 "Presentation of Financial Statements" sets out the overall requirements for financial statements, including how they should be structured, the minimum requirements for their content and overriding concepts such as going concern, the accrual basis of accounting and the current/non-current distinction. The standard requires a complete set of financial statements to comprise a statement of financial position, a statement of profit or loss and other comprehensive income, a statement of changes in equity and a statement of cash flows. Effective January 1, 2011, earlier application is permitted. The amendments are effective for annual periods beginning on or after January 1, 2023. Earlier application is permitted. The amendments are effective for reporting periods beginning on or after January 1, 2024. The amendments are applied retrospectively in accordance with IAS 8 and earlier application is permitted. IAS 2 — Inventories IAS 2 "Inventories" contains the requirements on how to account for most types of inventory. The standard requires inventories to be measured at the lower of cost and net realizable value (NRV) and outlines acceptable methods of determining cost, including specific identification (in some cases), first-in first-out (FIFO) and weighted average cost. Effective for interim and annual financial statements relating to fiscal years beginning on or after January 1, 2011. Earlier application is permitted. IAS 7 — Statement of Cash Flows IAS 7 "Statement of Cash Flows" requires an entity to present a statement of cash flows as an integral part of its primary financial statements. Cash flows are classified and presented into operating activities (either using the 'direct' or 'indirect' method), investing activities or financing activities, with the latter two categories generally presented on a gross basis. Effective for interim and annual financial statements relating to fiscal years beginning on or after January 1, 2011. The amendments are effective for annual periods beginning on or after January 1, 2017. Earlier application is permitted. IAS 8 — Accounting Policies, Changes in Accounting Estimates and Errors IAS 8 "Accounting Policies, Changes in Accounting Estimates and Errors" is applied in selecting and applying accounting policies, accounting for changes in estimates and reflecting corrections of prior period errors.The standard requires compliance with any specific IFRS applying to a transaction, event or condition, and provides guidance on developing accounting policies for other items that result in relevant and reliable information. Changes in accounting policies and corrections of errors are generally retrospectively accounted for, whereas changes in accounting estimates are generally accounted for on a prospective basis. Effective January 1, 2011, earlier application is permitted. The amendments are effective for annual periods beginning on or after January 1, 2023. Earlier application is permitted. IAS 10 — Events After the Reporting Period IAS 10 "Events After The Reporting Period" contains requirements for when events after the end of the reporting period should be adjusted in the financial statements. Effective for interim and annual financial statements relating to fiscal years beginning on or after January 1, 2011. Earlier application is permitted. IAS 11 — Construction Contracts IAS 11 "Construction Contracts" provides requirements on the allocation of contract revenue and contract costs to accounting periods in which construction work is performed. Contract revenues and expenses are recognized by reference to the stage of completion of contract activity where the outcome of the construction contract can be estimated reliably, otherwise revenue is recognized only to the extent of recoverable contract costs incurred. IAS 11 will be superseded by IFRS 15 Revenue from Contracts with Customers, which is effective for annual periods beginning on or after January 1, 2018. Earlier application is permitted. IAS 12 — Income Taxes IAS 12, "Income Taxes" implements a so-called 'comprehensive balance sheet method' of accounting for income taxes which recognizes both the current tax consequences of transactions and events and the future tax consequences of the future recovery or settlement of the carrying amount of an entity's assets and liabilities. Differences between the carrying amount and tax base of assets and liabilities, and carried forward tax losses and credits, are recognized, with limited exceptions, as deferred tax liabilities or deferred tax assets, with the latter also being subject to a 'probable profits' test. First effective as Canadian GAAP under Part I for interim and annual financial statements relating to fiscal years beginning on or after January 1, 2011. The amendments are effective for annual periods beginning on or after January 1, 2017. Earlier application is permitted.The amendments are effective for annual reporting periods beginning on or after January 1, 2023. Early adoption is permitted. IAS 16 — Property, Plant and Equipment IAS 16 "Property, Plant and Equipment" outlines the accounting treatment for most types of property, plant and equipment. Property, plant and equipment is initially measured at its cost, subsequently measured either using a cost or revaluation model, and depreciated so that its depreciable amount is allocated on a systematic basis over its useful life. Effective for interim and annual financial statements relating to fiscal years beginning on or after January 1, 2011, earlier application is permitted. The amendments are effective for annual periods beginning on or after January 1, 2022. Early application is permitted. IAS 18 — Revenue IAS 18 outlines the accounting requirements for when to recognise revenue from the sale of goods, rendering of services and for interest, royalties and dividends. Revenue is measured at the fair value of the consideration received or receivable and recognised when prescribed conditions are met, which depend on the nature of the revenue. IAS 18 was reissued in December 1993 and is operative for periods beginning on or after 1 January 1995. IAS 18 will be superseded by IFRS 15 Revenue from Contracts with Customers, which is effective for annual periods beginning on or after January 1, 2018. Earlier application is permitted. IAS 19 — Employee Benefits (2011) IAS 19 "Employee Benefits" (amended 2011) outlines the accounting requirements for employee benefits, including short-term benefits (e.g. wages and salaries, annual leave), post-employment benefits such as retirement benefits, other long-term benefits (e.g. long service leave) and termination benefits. The standard establishes the principle that the cost of providing employee benefits should be recognized in the period in which the benefit is earned by the employee, rather than when it is paid or payable, and outlines how each category of employee benefits are measured, providing detailed guidance in particular about post-employment benefits. The amendments are effective for annual periods beginning on or after January 1, 2016. Earlier application is permitted. IAS 20 — Accounting for Government Grants and Disclosure of Government Assistance IAS 20 "Accounting for Government Grants and Disclosure of Government Assistance" outlines how to account for government grants and other assistance. Government grants are recognized in profit or loss on a systematic basis over the periods in which the entity recognizes expenses for the related costs for which the grants are intended to compensate, which in the case of grants related to assets requires setting up the grant as deferred income or deducting it from the carrying amount of the asset Effective for interim and annual financial statements relating to fiscal years beginning on or after January 1, 2011. Earlier application is permitted. IAS 21 — The Effects of Changes in Foreign Exchange Rates IAS 21 "The Effects of Changes in Foreign Exchange Rates" outlines how to account for foreign currency transactions and operations in financial statements, and also how to translate financial statements into a presentation currency. Effective for interim and annual financial statements relating to fiscal years beginning on or after January 1, 2011. Earlier application is permitted. IAS 23 — Borrowing Costs IAS 23 "Borrowing Costs" requires that borrowing costs directly attributable to the acquisition, construction or production of a 'qualifying asset' (one that necessarily takes a substantial period of time to get ready for its intended use or sale) are included in the cost of the asset. Other borrowing costs are recognized as an expense. Effective for interim and annual financial statements relating to fiscal years beginning on or after January 1, 2011. Earlier application is permitted. IAS 24 — Related Party Disclosures IAS 24 "Related Party Disclosures" requires disclosures about transactions and outstanding balances with an entity's related parties. The standard defines various classes of entities and people as related parties and sets out the disclosures required in respect of those parties, including the compensation of key management personnel. The amendments are effective for annual periods beginning on or after July 1, 2014. Earlier application is permitted. IAS 26 — Accounting and Reporting by Retirement Benefit Plans IAS 26 "Accounting and Reporting by Retirement Benefit Plans" outlines the requirements for the preparation of financial statements of retirement benefit plans. It outlines the financial statements required and discusses the measurement of various line items, particularly the actuarial present value of promised retirement benefits for defined benefit plans. Not currently applicable as Canadian GAAP. IAS 27 — Separate Financial Statements (2011) IAS 27 "Separate Financial Statements" (as amended in 2011) outlines the accounting and disclosure requirements for "separate financial statements", which are financial statements prepared by a parent, or an investor in a joint venture or associate, where those investments are accounted for either at cost or in accordance with IAS 39 "Financial Instruments: Recognition and Measurement" or IFRS 9 "Financial Instruments". The standard also outlines the accounting requirements for dividends and contains numerous disclosure requirements. The amendments are effective for annual periods beginning on or after January 1, 2016. Earlier application is permitted. IAS 28 — Investments in Associates and Joint Ventures (2011) IAS 28 "Investments in Associates and Joint Ventures" (as amended in 2011) outlines how to apply, with certain limited exceptions, the equity method to investments in associates and joint ventures. The standard also defines an associate by reference to the concept of "significant influence", which requires power to participate in financial and operating policy decisions of an investee (but not joint control or control of those polices). The amendments are effective on January 1, 2018 IAS 29 — Financial Reporting in Hyperinflationary Economies IAS 29 "Financial Reporting in Hyperinflationary Economies" applies where an entity's functional currency is that of a hyperinflationary economy. The standard does not prescribe when hyperinflation arises but requires the financial statements (and corresponding figures for previous periods) of an entity with a functional currency that is hyperinflationary to be restated for the changes in the general pricing power of the functional currency. Effective for interim and annual financial statements relating to fiscal years beginning on or after January 1, 2011. Earlier application is permitted. IAS 31 — Interests In Joint Ventures [Superseded] IAS 31 "Interests in Joint Ventures" sets out the accounting for an entity's interests in various forms of joint ventures: jointly controlled operations, jointly controlled assets, and jointly controlled entities. The standard permits jointly controlled entities to be accounted for using either the equity method or by proportionate consolidation.IAS 31 is superseded by IFRS 11 Joint Arrangements and IFRS 12 Disclosure of Interests in Other Entities with effect from annual periods beginning on or after January 1, 2013. IFRS 11 and IFRS 12 Disclosure of Interests in Other Entities are effective for annual periods beginning on or after January 1, 2013. Earlier application of IFRS 11 and IFRS 12 is permitted if IFRS 10 Consolidated Financial Statements, IAS 27 Separate Financial Statements (2011) and IAS 28 Invesments in Associates and Joint Ventures (2011) are applied at the same time. IAS 32 — Financial Instruments: Presentation IAS 32, "Financial Instruments: Presentation" outlines the accounting requirements for the presentation of financial instruments, particularly as to the classification of such instruments into financial assets, financial liabilities and equity instruments. The standard also provides guidance on the classification of related interest, dividends and gains/losses, and when financial assets and financial liabilities can be offset. The above amendments are effective for annual periods beginning on or after January 1, 2013. Earlier application is permitted.
Part I — International Financial Reporting Standards (IFRS) (2024)

FAQs

What is the hardest IFRS standard? ›

IFRS 9 is probably the most complicated accounting standard ever issued, written to address the accounting weaknesses claimed to have contributed to the global financial crisis and intended to be fit for purpose for the most complex banking and financial services companies.

How many IFRS standards are there in a PDF? ›

IFRS guidance is currently comprised of 38 standards and 26 interpretations.

What are the international financial reporting standards IFRS 1? ›

Overview. IFRS 1 aims to ensure that an entity's first financial statements after adopting IFRS, and interim statements for partial periods under IFRS, will: be transparent and comparable; provide a "suitable starting point" for the entity's accounting under IFRS; and.

How do I complete IFRS? ›

Skills Required to Become an IFRS expert
  1. In-depth knowledge of accounting and financial reporting.
  2. Staying up to date with the changes in reporting standards.
  3. A good memory to remember all the rules and regulations.
  4. Knack for learning about the new improvements.
  5. Finding ways to implement the new changes.

Why doesn t america use IFRS? ›

Some reasons for the U.S. not embracing the standards convergence are: U.S. firms are already familiar with the existing standards; the inability or low ability to culturally relate to other countries' accounting systems; and a lack of good understanding of the international principles.

Is IFRS better than US GAAP? ›

Which is better IFRS or GAAP? It depends on the context. Generally speaking, IFRS is more widely used globally and is better for companies that operate in multiple countries, while GAAP is more focused on the US and is better for companies that only operate in the US.

What are the 4 main standard requirements of IFRS? ›

List of IFRS Standards
IFRS #IFRS Standard
1First-time Adoption of International Financial Reporting Standards
2Share-based Payment
3Business Combinations
4Insurance Contracts
13 more rows

Where can I read IFRS? ›

With so much going on, the best way you can keep up to date on IFRS and broader corporate reporting developments is through our website www.iasplus.com, which is widely regarded as the most comprehensive source of news and comment on this subject.

Who sets IFRS standards? ›

The International Accounting Standards Board (IASB) is an independent, private-sector body that develops and approves International Financial Reporting Standards (IFRSs). The IASB operates under the oversight of the IFRS Foundation.

What is IFRS 1 in simple terms? ›

IFRS 1 requires an entity that is adopting IFRS Standards for the first time to prepare a complete set of financial statements covering its first IFRS reporting period and the preceding year. The entity uses the same accounting policies throughout all periods presented in its first IFRS financial statements.

What is the IFRS 1 summary? ›

IFRS 1 provides guidance for entities adopting IFRS for the first time. The standard requires an entity in this position to comply with IFRSs effective at the end of its first IFRS accounting period in terms of the recognition and measurement of assets and liabilities.

Who issues IFRS? ›

The International Accounting Standards Board (IASB) is an independent, private-sector body that develops and approves International Financial Reporting Standards (IFRSs). The IASB operates under the oversight of the IFRS Foundation.

How to learn IFRS quickly? ›

5 steps to learn IFRS easy and fast
  1. First step to learn IFRS - substance over form.
  2. Second step to learn IFRS—structure of the rules. ...
  3. Third step to learn IFRS—Understand part A, B, and C of the standards.
  4. Fourth step to learn IFRS - The use of artificial intelligence in accounting.
  5. Fifth step to learn IFRS - study tools.
Oct 3, 2022

How long does it take to study for IFRS? ›

How long does it take? How you study for your ACCA Diploma in IFRS is very flexible and you can progress at your own pace. Students can complete the Diploma in 6‑12 months. For more information about the ACCA Diploma in IFRS please visit www.accaglobal.com.

How to learn IFRS for free? ›

Deloitte has developed a series of IFRS training modules which are offered free (upon registration) as a public service. Each module (approximate size: 3MB) can be downloaded as a . zip file and provides: Real life scenarios to demonstrate application of the standards.

Is IFRS 17 complicated? ›

Complexity: IFRS 17 is a complex standard that requires a thorough understanding of insurance contracts and the underlying financial and actuarial concepts.

Why is IFRS 17 better than IFRS 4? ›

The key difference between IFRS 17 and IFRS 4 is the consistency of application of accounting treatments to areas such as revenue recognition and liability valuation. Under IFRS 4, entities were free to derive their own interpretations of revenue recognition and calculation of reserves.

Is IFRS 15 hard? ›

Challenge: IFRS 15 requires businesses to identify all the performance obligations in a contract, which can be a complex process. Some contracts might have multiple components or involve various goods and services, making it difficult to determine what constitutes a separate performance obligation.

Which is the most important IFRS? ›

In this article, we will explore some of the most commonly used IFRS rules and their significance in the financial world. IFRS 9 addresses the classification, measurement, and impairment of financial assets and liabilities.

Top Articles
Latest Posts
Recommended Articles
Article information

Author: Rev. Porsche Oberbrunner

Last Updated:

Views: 6128

Rating: 4.2 / 5 (73 voted)

Reviews: 88% of readers found this page helpful

Author information

Name: Rev. Porsche Oberbrunner

Birthday: 1994-06-25

Address: Suite 153 582 Lubowitz Walks, Port Alfredoborough, IN 72879-2838

Phone: +128413562823324

Job: IT Strategist

Hobby: Video gaming, Basketball, Web surfing, Book restoration, Jogging, Shooting, Fishing

Introduction: My name is Rev. Porsche Oberbrunner, I am a zany, graceful, talented, witty, determined, shiny, enchanting person who loves writing and wants to share my knowledge and understanding with you.