IAS

IAS 1
IAS 1, or the International Accounting Standard 1, deals with the presentation of financial
statements. It establishes guidelines on the structure and content of financial statements,
including balance sheets, income statements, and cash flow statements. The standard outlines
the minimum requirements for presenting a fair and accurate depiction of an entity’s financial
position, performance, and cash flows. It also covers topics such as accrual accounting,
materiality, and comparative information. Compliance with IAS 1 is crucial for ensuring
transparency and comparability in financial reporting.

IAS 2
IAS 2, or the International Accounting Standard 2, focuses on the accounting treatment of
inventories. It outlines the principles for recognizing, measuring, and presenting inventories in
financial statements. The standard requires inventories to be measured at the lower of cost and
net realizable value, promoting a conservative approach. Cost includes acquisition, production,
and other costs incurred to bring the inventory to its present location and condition. IAS 2 also
provides guidance on specific cost formulas, like FIFO (First-In-First-Out) and weighted average,
for inventory valuation. Overall, it aims to ensure consistency and comparability in reporting
inventory across different entities.

IAS 7
Certainly! IAS 7, or the International Accounting Standard 7, focuses on the presentation of cash
flow statements in financial reporting. It requires businesses to categorize cash flows into
operating, investing, and financing activities. The goal is to provide users of financial statements
with information about the entity’s cash inflows and outflows, aiding in assessing its liquidity
and financial flexibility.
IAS 8
IAS 8, or the International Accounting Standard 8, is focused on accounting policies, changes in
accounting estimates, and errors. It outlines the criteria for selecting and changing accounting
policies, provides guidance on handling changes in estimates, and details how to correct errors
in financial statements. The standard emphasizes consistency in applying accounting policies
unless a change is required by a standard or improves the relevance and reliability of financial
information. It also defines the retrospective application of changes and sets disclosure
requirements for significant accounting policies and changes.

IAS 10
IAS 10, or International Accounting Standard 10, is about events after the reporting period. It
outlines guidelines for adjusting financial statements when events occur between the end of the
reporting period and the date the financial statements are authorized for issue. Key points
include recognizing adjusting events and non-adjusting events, and disclosing the date of
authorization of financial statements. It ensures financial statements provide relevant and
reliable information up to the date of authorization.

IAS 11
IAS 11, or International Accounting Standard 11, is related to construction contracts. It provides
guidelines for recognizing revenue and costs associated with long-term construction projects.
The key points include determining the stage of completion, assessing contract revenue,
recognizing profits, and addressing potential losses. It aims to ensure accurate financial
reporting for construction activities, promoting consistency and comparability across financial
statements.

IAS 12
IAS 12, or International Accounting Standard 12, deals with income taxes. Here’s a brief
summary:
IAS 12 requires entities to account for current and deferred tax. Current tax is the amount owed
to tax authorities based on taxable profit, while deferred tax reflects timing differences between
accounting and tax rules. Deferred tax assets and liabilities are recognized, and the standard
provides guidelines for measuring and presenting them in financial statements. It also addresses
the recognition of deferred tax on unused tax losses and tax credits. Disclosure requirements
include the nature of temporary differences, tax rates, and uncertainties in tax positions.
IAS 14
IAS 14, The objective of IAS 14 (Revised 1997) is to establish principles for reporting financial
information by line of business and by geographical area. It applies to entities whose equity or
debt securities are publicly traded and to entities in the process of issuing securities to the
public. In addition, any entity voluntarily providing segment information should comply with the
requirements of the Standard.

IAS 15
In October 1989, the IASC issued a Board Statement making IAS 15 optional, not mandatory.
IASC granted that exemption because of the failure to reach an international consensus on the
disclosure of information reflecting the effects of changing prices. However, enterprises are
encouraged to disclose information reflecting the effects of changing prices and, where they do
so, to disclose the items required by IAS 15.

IAS 16
IAS 16, or the International Accounting Standard 16, focuses on property, plant, and equipment
(PPE). It provides guidelines for recognizing, measuring, and presenting PPE in financial
statements. The standard outlines the initial recognition, subsequent measurement,
depreciation, and impairment of PPE. It also details the disclosure requirements related to these
assets, ensuring transparency in financial reporting. Compliance with IAS 16 helps stakeholders
assess an entity’s investment in tangible assets and its impact on financial performance.

IAS 17
IAS 17, or the International Accounting Standard 17, focuses on leases. It outlines the
accounting principles and disclosure requirements for lessees and lessors. The standard
categorizes leases as either finance leases or operating leases, determining how they should be
recognized, measured, and presented in financial statements. Key aspects include lease
classification criteria, recognition of assets and liabilities, initial measurement, subsequent
measurement, and disclosure requirements.
IAS 18
IAS 18, or the International Accounting Standard 18, provides guidelines for recognizing revenue
from the sale of goods, rendering services, and other activities. Key principles include the
determination of the point of revenue recognition, which typically occurs when the significant
risks and rewards of ownership have transferred to the buyer, the seller no longer has control
over the goods or services, and the amount of revenue can be reliably measured. The standard
outlines specific criteria for various scenarios, such as sales of goods, services, and interest,
royalties, and dividends. Compliance with IAS 18 ensures consistent and transparent revenue
recognition practices in financial reporting.

IAS 19
IAS 19, or the International Accounting Standard 19, is focused on employee benefits. It outlines
the accounting treatment and disclosure requirements for both short-term benefits like wages
and long-term benefits such as pensions and post-employment healthcare. The standard
provides guidance on how companies should recognize, measure, and disclose these employee
benefits in their financial statements, ensuring transparency and consistency in reporting.

IAS 20
IAS 20, or International Accounting Standard 20, deals with accounting for government grants
and disclosure of government assistance. The standard outlines the accounting treatment for
government grants, emphasizing the importance of recognizing and disclosing such assistance in
financial statements. It distinguishes between grants related to income and those related to
assets, providing specific guidelines for each. Additionally, IAS 20 requires disclosure of the
nature and extent of government assistance received by an entity. The standard aims to ensure
transparency and proper reporting of government-related financial support in financial
statements.

IAS 21
IAS 21, or International Accounting Standard 21, deals with the accounting for foreign currency
transactions and the translation of financial statements into a presentation currency. The
standard provides guidance on how to recognize foreign currency transactions initially and how
to include these transactions in the financial statements. It also addresses the treatment of
exchange differences arising from translating the financial statements of foreign operations. The
main objective is to ensure consistent and transparent reporting when dealing with transactions
in different currencies.
IAS 22
IAS 22, or International Accounting Standard 22, deals with accounting for business
combinations. It outlines the accounting treatment for the acquisition method, where one
entity acquires another. The standard requires the acquiring entity to recognize and measure
the identifiable assets acquired, liabilities assumed, and any non-controlling interest in the
acquired entity. Goodwill, representing the excess of the cost of the business combination over
the fair value of net assets acquired, is also recognized. IAS 22 was superseded by IFRS 3
(Revised) in 2008, which introduced significant changes to the accounting for business
combinations.

IAS 23
IAS 23, or the International Accounting Standard 23, deals with the accounting treatment of
borrowing costs. The standard outlines how entities should account for interest incurred on
loans and other borrowings during the construction or acquisition of qualifying assets. It
requires capitalization of borrowing costs directly attributable to the acquisition, construction,
or production of assets that take a substantial amount of time to be prepared for their intended
use or sale. The capitalization period ends when the asset is substantially ready for use or sale.
Any excess borrowing costs that are not directly attributable to a qualifying asset should be
recognized as an expense in the period they occur.

IAS 24
IAS 24, or the International Accounting Standard 24, focuses on related party disclosures. It
requires entities to disclose information about transactions and relationships with related
parties, which could influence financial decisions. The standard defines related parties and
outlines the necessary disclosures, ensuring transparency and preventing potential conflicts of
interest in financial reporting.

IAS 25
IAS 25, or International Accounting Standard 25, deals with accounting for investments. It
outlines the accounting treatment for investments in associates and prescribes the equity
method of accounting. The standard requires entities to recognize their investments in
associates in the consolidated financial statements using the equity method, where the
investor’s share of the associate’s post-tax profits or losses is included in the investor’s income
statement. It also provides guidance on the recognition and measurement of investments in
subsidiaries in the separate financial statements of the investor.
IAS 26
IAS 26, or International Accounting Standard 26, focuses on accounting and reporting by
retirement benefit plans. The standard outlines the disclosure requirements for retirement
benefit plans, emphasizing transparency in financial statements. It covers areas such as plan
assets, actuarial assumptions, and various disclosures related to the financial position and
performance of these plans. The objective is to provide users of financial statements with
relevant information about the financial position and performance of retirement benefit plans.

IAS 27
IAS 27, or International Accounting Standard 27, primarily deals with the accounting and
reporting of consolidated financial statements. The standard outlines the criteria for the
preparation and presentation of consolidated financial statements when an entity controls one
or more other entities. It defines control as the power to govern the financial and operating
policies of an entity to obtain benefits from its activities. IAS 27 also provides guidance on the
accounting treatment when an entity loses control or gains joint control over subsidiaries. The
standard aims to ensure transparent and relevant reporting of an entity’s financial position and
performance when it has subsidiaries or associates.

IAS 28
IAS 28, or the International Accounting Standard 28, addresses the accounting for investments
in associates. An associate is an entity over which the investor has significant influence but not
control. The standard outlines the equity method for accounting for such investments, requiring
the investor to recognize its share of the associate’s profits or losses. Additionally, it provides
guidelines for the initial recognition, measurement, and impairment of investments in
associates. Disclosure requirements are also specified to ensure transparency in financial
reporting. Overall, IAS 28 aims to ensure proper accounting treatment for investments where
the investor holds significant influence but does not have control.

IAS 29
IAS 29, or International Accounting Standard 29, deals with the accounting and financial
reporting in the context of hyperinflation. It outlines the procedures and requirements for
entities operating in economies where the general price levels are highly unstable. The standard
requires restating financial statements in terms of a stable measuring unit, such as a currency
with relatively stable purchasing power. This helps users of financial statements to make
meaningful comparisons and assessments despite the hyperinflationary environment.
IAS 30
IAS 30, or International Accounting Standard 30, primarily focuses on disclosures in financial
statements of banks and similar financial institutions. It outlines requirements for presenting
information about the financial position, performance, and cash flows of such entities,
emphasizing the need for transparency in reporting. Key areas covered include disclosure of
accounting policies, risk management, and concentrations of assets and liabilities. The standard
aims to provide users of financial statements with relevant information to assess the entity’s
liquidity, solvency, and risk exposures.

IAS 31
IAS 31, or International Accounting Standard 31, is related to Interests in Joint Ventures. It
outlines the accounting and reporting requirements for entities involved in joint ventures,
where two or more parties collaborate to undertake an economic activity. The standard
provides guidance on recognizing, measuring, and disclosing interests in joint ventures in
financial statements. It covers both jointly controlled operations and jointly controlled assets.
IAS 31 aims to ensure consistent and transparent reporting of joint ventures, facilitating better
understanding for investors and stakeholders.

IAS 32
IAS 32, or the International Accounting Standard 32, primarily focuses on financial instruments.
It provides guidelines for the presentation and disclosure of financial instruments in financial
statements. The standard differentiates between financial liabilities and equity instruments,
emphasizing the importance of understanding the substance of financial instruments rather
than solely relying on their legal form. IAS 32 also addresses the classification of financial
instruments and outlines the criteria for determining whether an instrument should be
classified as a liability or equity. The standard aims to enhance transparency and clarity in
financial reporting related to complex financial instruments.

IAS 33
IAS 33, or the International Accounting Standard 33, focuses on the calculation and presentation
of earnings per share (EPS) in financial statements. It provides guidance on how to determine
basic and diluted EPS, considering various potential common share transactions. The standard
aims to enhance comparability of financial information across different entities by establishing a
uniform approach for EPS calculation. It covers the disclosure requirements for EPS and helps
investors and analysts in assessing an entity’s profitability on a per-share basis.
IAS 34
IAS 34, or International Accounting Standard 34, deals with the interim financial reporting. It
outlines the requirements for preparing and presenting condensed financial statements for an
interim period. The standard provides guidance on what information should be included in
interim financial statements, emphasizing the need for a balance between providing relevant
information and the cost of preparing it. It also addresses the recognition and measurement
principles for certain items in interim financial statements. The goal is to give users of financial
statements meaningful insight into an entity’s financial position and performance during the
interim period.

IAS 35
IAS 35, or the International Accounting Standard 35, is titled “Discontinuing Operations.” It
outlines the accounting treatment and disclosure requirements for discontinuing operations,
which can result from a company’s decision to sell, terminate, or wind down a significant
component of its business. The standard emphasizes the need for separate presentation of
discontinued operations in financial statements and provides guidance on measuring and
disclosing related assets, liabilities, income, and expenses. IAS 35 aims to enhance transparency
and comparability in financial reporting by ensuring clear communication about the impact of
discontinuing operations on a company’s financial performance.

IAS 36
IAS 36, or the International Accounting Standard 36, deals with impairment of assets. It outlines
the procedures that entities should follow to ensure that their assets are carried at no more
than their recoverable amount. The standard requires regular assessments of assets for any
indications of impairment and the recognition of any resulting impairment losses. It provides
guidelines for determining the recoverable amount, measuring impairment, and disclosing
information related to impaired assets in financial statements.

IAS 37
IAS 37, or the International Accounting Standard 37, deals with provisions, contingent liabilities,
and contingent assets. It outlines the criteria for recognizing provisions in financial statements,
defines contingent liabilities, and provides guidelines for recognizing contingent assets. The
standard aims to ensure that companies accurately reflect their financial positions by
accounting for potential future obligations and uncertainties.
IAS 38
IAS 38, or the International Accounting Standard 38, deals with the accounting treatment of
intangible assets. Intangible assets are non-physical assets, such as patents, copyrights,
trademarks, and goodwill. The standard outlines the criteria for recognizing and measuring
intangible assets, emphasizing the need for reliable measurement and proper disclosure in
financial statements. IAS 38 requires entities to assess the probability of future economic
benefits and the cost of the asset reliably. Additionally, it specifies the accounting treatment for
research and development costs, indicating that research costs are expensed while
development costs can be capitalized under certain conditions. Disclosure requirements include
details about the nature, carrying amount, and useful life of intangible assets, providing
transparency for users of financial statements.

IAS 39
IAS 39, or the International Accounting Standard 39, is a financial reporting standard that
addresses the recognition and measurement of financial instruments. It provides guidelines on
how to classify and measure financial assets and liabilities, as well as how to account for
changes in their values. IAS 39 distinguishes between financial assets held for trading, those
held to maturity, and those designated at fair value through profit or loss. It also introduces
rules for hedge accounting to manage risks effectively. The standard aims to ensure transparent
and consistent reporting of financial instruments in financial statements.

IAS 40
IAS 40, or International Accounting Standard 40, is a standard that deals with the accounting for
investment properties. Investment properties are defined as properties held to earn rental
income or for capital appreciation, or both.
The key points covered by IAS 40 include the recognition, measurement, and disclosure of
investment properties. It requires investment properties to be initially measured at cost,
including transaction costs, and subsequently at fair value. Changes in fair value are generally
recognized in profit or loss.
IAS 40 also provides guidance on the treatment of investment property transfers, such as a
change in use. When an investment property is reclassified, its measurement basis may change,
and any change is accounted for prospectively.
Disclosure requirements include information about the fair value model, significant judgments
made in determining fair value, and other relevant details. The standard aims to ensure
transparent and consistent reporting for entities with investment properties.
IAS 41
IAS 41, or the International Accounting Standard 41, primarily addresses the accounting
treatment of agricultural activity. It provides guidelines for recognizing, measuring, and
disclosing information about agricultural assets, such as biological assets (living plants and
animals) and agricultural produce at harvest. The standard emphasizes fair value measurement
for biological assets and requires entities to assess and record changes in fair value over time.
Additionally, IAS 41 outlines specific disclosure requirements to provide transparency about the
nature and financial effects of agricultural activities.