IFRS

BY TEAM 4
MJ Muhammad Althaf
Parvathy PG
Sony Thomas
Akshaya Raj SR
Aparna Anilkumar
Liz Lal
Prince Antony
Sreelakshmi TS
Aleena M
Arun A Pai
INTRODUCTION TO
IFRS
International Financial Reporting Standards
(IFRS) are a set of accounting standards that
govern how particular types of transactions and
events should be reported in financial statements.
They were developed and are maintained by the
International Accounting Standards Board (IASB).

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USES OF IFRS
▪️FINANCIAL TOOL

▪️PRINCIPLES AND GUIDE

▪️PROMOTES DECISION MAKING

▪️IMPROVES ECONOMY

▪️COMPARABILITY

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ADVANTAGES
 GREATER COMPARABILITY

 MORE FLEXIBILITY

 REDUCES TIME AND EFFORT

 LOSS RECOGNITION TIMELINESS

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DISADVANTAGES
 NOT GLOBALLY ACCEPTED

 MANIPULATION OF STANDARDS

 INCREASED COSTS

 NOT SUITABLE FOR

DEVELOPING COUNTRIES

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WHY IFRS IS NEEDED?
 UNIFORMITY

 INTERNATIONAL CAPITAL

 REGULATORS

 INVESTORS

 ACCOUNTING PROFESSIONALS

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 BENEFITS OF IFRS
1. It benefits the economy by increasing the growth of its international business.

2. By encouraging the international investors to invest, it leads to more foreign capital flows to the
country.

3. Financial statements prepared using a common set of accounting standards help investors better
understand investment opportunities as opposed to financial statements prepared using a different
set of national accounting standards.

4. The industry is able to raise capital from foreign markets at a lower cost if it can create
confidence in the minds of foreign investors that their financial statements comply with globally
accepted accounting standards.

5. It offers accounting professionals more opportunities in any part of the world where the same
accounting practices.

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IMPORTANCE OF IFRS
 1 . Transparency
 2 . Uniformity and Comprehensive

 3 . Security and Flow

 4 . Accountability

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 OBJECTIVES

1. Create a Common Law

2. Aid analysis

3. Assist in preparation of reliable financial recordS

4. Ensure comparability, transparency, and flexibility in reporting

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DIFFERENCES BETWEEN IFRS
AND GAAP
 ADOPTION

 METHODOLOGY

 INVENTORY METHODS

 INVENTORY REVERSAL

 INCOME STATEMENTS
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 REQUIREMENTS FOR
IFRS
IFRS covers a wide range of accounting activities.
There are certain aspects of business practice for
which IFRS set mandatory rules.

 Statement of Financial Position

 Statement of Comprehensive Income
 Statement of Changes in Equity
 Statement of Cash Flows

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THANK YOU