IFRS

IFRS 1
IFRS 1, or International Financial Reporting Standard 1, is a standard issued by the International
Accounting Standards Board (IASB). It addresses the first-time adoption of International
Financial Reporting Standards (IFRS) by an entity. The standard provides guidance on the
transition from previous accounting frameworks to IFRS, ensuring comparability and
transparency in financial reporting. It covers aspects such as opening balance sheet
adjustments, exemptions for certain retrospective applications, and disclosure requirements to
enhance the understanding of the transition process.

IFRS 2
IFRS 2, or International Financial Reporting Standard 2, focuses on accounting for share-based
payment transactions. It outlines the principles for recognizing and measuring equity-settled
and cash-settled share-based payments. The standard requires companies to recognize the fair
value of share-based payments as an expense in their financial statements, contributing to
transparent reporting of employee compensation.

IFRS 3
IFRS 3, or International Financial Reporting Standard 3, outlines the accounting requirements for
business combinations. It covers the recognition and measurement of identifiable assets,
liabilities, and goodwill acquired in a business combination. Key aspects include fair value
assessments, allocation of purchase price, and disclosure requirements to provide transparent
financial reporting for investors.

IFRS 4
IFRS 4, or the International Financial Reporting Standard 4, is focused on insurance contracts. It
provides guidelines for recognizing, measuring, and disclosing insurance contracts in financial
statements. The standard allows entities to use existing accounting practices until a
comprehensive standard, IFRS 17, is fully implemented. IFRS 4 emphasizes disclosure
requirements to enhance transparency in reporting insurance contracts.
IFRS 5
IFRS 5, “Non-current Assets Held for Sale and Discontinued Operations,” outlines accounting
requirements for assets held for sale and discontinued operations. It requires their separate
presentation in financial statements, ensuring transparency. The standard defines criteria for
classification as held for sale and specifies measurement, presentation, and disclosure
guidelines for such assets and discontinued operations. It aims to provide relevant information
to users of financial statements about the impact of these events on an entity’s financial
position and performance.

IFRS 6
IFRS 6, or International Financial Reporting Standard 6, is focused on exploration and evaluation
activities in the extractive industries, such as oil, gas, and mining. It provides guidelines for
recognizing and measuring exploration and evaluation assets. The standard allows entities to
capitalize certain costs associated with finding and assessing mineral resources. However, it
emphasizes the importance of impairment testing and requires disclosure of significant
judgments and assumptions made in the exploration and evaluation process. Overall, IFRS 6
aims to enhance transparency and comparability in financial reporting for extractive industries.

IFRS 7
IFRS 7 is a financial reporting standard that focuses on disclosures related to financial
instruments. It requires entities to disclose information about the significance of financial
instruments in their financial statements, including their risk exposures and how they manage
those risks. Key disclosures include details on market risk, credit risk, liquidity risk, and fair value
measurements. The standard aims to enhance transparency and provide users of financial
statements with a better understanding of an entity’s exposure to risks associated with financial
instruments.

IFRS 8
IFRS 8, also known as “Operating Segments,” outlines the disclosure requirements for an entity’s
operating segments. It focuses on providing information about the financial performance and
position of an entity’s individual business segments to help users of financial statements better
understand the company’s risks and opportunities. The standard requires the disclosure of
segmental information, such as revenues, profits, assets, and liabilities, and encourages entities
to align their internal reporting with how their chief operating decision-maker manages and
evaluates performance.
IFRS 9
IFRS 9 is an international financial reporting standard that addresses classification and
measurement of financial instruments, impairment of financial assets, and hedge accounting. It
aims to provide a more forward-looking approach to financial instrument accounting compared
to its predecessor, IAS 39. The standard classifies financial instruments into three categories:
measured at amortized cost, fair value through other comprehensive income, and fair value
through profit or loss. Additionally, IFRS 9 introduces an expected credit loss model for
impairment and enhances hedge accounting requirements.

IFRS 10
IFRS 10, or the International Financial Reporting Standard 10, addresses the consolidation of
financial statements. It outlines the principles for determining control over an entity and
provides guidance on consolidating subsidiaries. The key concept is assessing power, exposure
or rights to variable returns, and the ability to use one’s power to affect returns. The standard
aims to present consolidated financial statements that reflect the economic reality of an entity’s
control relationships.

IFRS 11
IFRS 11 is an accounting standard that deals with joint arrangements. It outlines how entities
should account for joint ventures and joint operations, emphasizing the concept of joint control.
The standard requires the use of the equity method for joint ventures and proportionate
consolidation for joint operations. It aims to provide more transparent and relevant information
about an entity’s involvement in joint arrangements.

IFRS 12
IFRS 12 is a standard that focuses on disclosure requirements for entities involved in various
forms of joint arrangements, such as joint ventures and associates. It outlines the information
entities need to provide in their financial statements to enable users to understand the nature,
risks, and financial effects of these arrangements. The standard requires disclosures about a
company’s interests in subsidiaries, joint arrangements, and associates, including information
about significant judgments and assumptions made in determining the carrying amounts of
investments.
IFRS 13
IFRS 13 is the International Financial Reporting Standard that provides guidance on fair value
measurement. It outlines the principles and defines fair value, establishes a framework for its
measurement, and sets disclosure requirements. The standard aims to enhance consistency and
comparability in financial reporting by providing a common definition and framework for fair
value across various financial instruments and markets.

IFRS 14
IFRS 14, “Regulatory Deferral Accounts,” provides guidance on accounting for regulatory deferral
account balances in rate-regulated industries. It aims to enhance transparency and consistency
in financial reporting by entities subject to rate regulation. The standard outlines recognition,
measurement, presentation, and disclosure requirements for regulatory deferral account
balances, ensuring they are appropriately reflected in financial statements.

IFRS 15
IFRS 15 is the International Financial Reporting Standard that outlines the principles for
recognizing revenue from contracts with customers. It establishes a comprehensive framework
for revenue recognition, focusing on the transfer of control over goods or services to customers.
The standard introduces a five-step model to determine when and how revenue should be
recognized. These steps include identifying the contract, identifying performance obligations,
determining the transaction price, allocating the transaction price to performance obligations,
and recognizing revenue when each performance obligation is satisfied. IFRS 15 aims to
enhance comparability and transparency in financial reporting related to revenue.

IFRS 16
IFRS 16 is an accounting standard that primarily deals with leases. It came into effect on January
1, 2019. The key change introduced by IFRS 16 is the requirement for lessees to recognize most
leases on their balance sheets, eliminating the distinction between operating and finance
leases. This standard aims to provide a more accurate reflection of a company’s financial
position by recognizing lease liabilities and right-of-use assets. It also impacts financial ratios
and disclosures related to leases.
IFRS 17
IFRS 17 is an accounting standard that addresses insurance contracts. It aims to improve
transparency and consistency in reporting by introducing a comprehensive framework for the
measurement and presentation of insurance contracts. The standard requires insurers to
regularly reassess their contracts and recognize profits over the coverage period. It became
effective on January 1, 2022, bringing significant changes to the way insurance companies
account for and report their contracts.