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IFRS Adoption Presentation
IFRS Adoption Presentation
MUHAMMAD AZAM
MUFTI BILAL ASLAM
ABSTRACT
• The major goal of this study is to determine the extent of IFRS adoption in Pakistan and to conduct
an empirical analysis of the influence of IFRS adoption on financial statement items in firms'
financial statements.
• Using a sample of 10 Pakistani businesses that voluntarily embraced IFRS reporting, the study will
be conducted.
• For a period of six years, financial statements produced in accordance with IFRS are obtained.
• The Gray Comparison Index is used to assess the impact of financial parameters on sustainability,
flexibility, profitability, and investment valuation. The statistical significance of the data will be
determined using “Wilcoxon's signed ranks test, coupled sample t-test, F-test,” and linear regression.
INTRODUCTION
• Financial reporting standards began with the establishment of the International Accounting
Standards Committee (IASC) in 1973 by 16 professional bodies.
• International Financial Reporting Standards Rules (IFRS), properly recognized in 2001.
• The United States Financial Accounting Standard Board (FASB) and the International Accounting
Standards Committee (IASC) agreed to work accurately together in September 2002 to create
accounting standards that are perfectly compatible and can be accepted for both domestic and
international financial reporting.
• Pakistan's Securities and Exchange Commission (SECP) has approved the adoption of the
International Reporting Standard for Small and Medium-Sized Entities (IFRS for SMEs) will take
effect for annual financial periods commencing on or after January 1, 2015.
THE OBJECTIVES AND IMPORTANCE OF INTRODUCING
IFRS
• To actively collaborate with the national standard-setter in order to achieve the confluence of
accounting standards across countries.
• IFRSs are intended to be used by profit-driven companies.
• According to IFRSs, financial statements (FS) must present an accurate and fair picture of an
entity's financial situation.
• To create a single set of globally enforceable, high-quality accounting standards that demand
comparable, clear financial statement information.
• To help participants in various capital markets (investors, stock brokers, etc) across the globe to
understand financial statements.
THE PURPOSE OF THE RESEARCH
• Finding out how much the implementation of international financial reporting standards (IFRS)
would affect Pakistan's financial reporting system is the major goal of this study.
• The research specifically aims to:
• Find out how much the organizations (experts) should concentrate on IFRS Adoption in the
accounting areas that the auditors and accountants evaluated.
• Learn how much the auditors and accountants thought about the effects of IFRS Adoption in
organizations.
• Specify the level to which the auditors and accountants saw the staff as being engaged in IFRS for
financial products.
STUDY QUESTION
• Banks, DFIs, exchange companies, and MFBs are governed by the State Bank of
Pakistan (SBP), whilst NBFCs,
• insurance companies and modaraba companies are governed by the Securities
Exchange Commission of Pakistan (SECP).
CONCEPTUAL FRAMEWORK
• The study help examines how sustainability, A Representation that is Accurate, fixable,
Comparability, and Investment valuation Financial statements. The goal of the study is to
identify the Adoption of IFRS and its Impact on Financial Reporting.
• We reviewed several articles on the effects of sustainability, A Representation that is
Accurate, fixable, Comparability, and Investment valuation , and other variables that are
taken in our study on the Quality of Financial statements.
• There are Five main variables sustainability, A Representation that is Accurate, fixable,
Comparability, and Investment valuation we will be seen an Impact on Financial statements.
IFRS Adoption Sustainability
Flexibility
Profitability
Comparability
Investment
Quality of Financial valuation
Reporting