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    FRA IFRS Unit 5

    Uploaded by

    13664

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
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    Download as pptx, pdf, or txt
    of 11

    International Financial

    Reporting Standards
    (IFRS)
    Sub: Financial Reporting and Analysis

    Course : B.COM (H)


    Semester : VI
    Teacher: Beenu
    Learning Outcomes

    • Introduction to IFRS
    • IND -AS/Converged IFRS
    • Benefits of Adopting IFRS
    • Challenges of Adopting IFRS
    • Difference between GAAP & IFRS
    Introduction To IFRS

    • IFRS refers to International Financial Reporting


    Standards issued by International Accounting
    Standard Board(IASB).
    • IFRS are a set of International Accounting
    Standards guiding how to record and report
    particular transactions and events in financial
    statements.
    IND -AS/Converged IFRS

    • In India ,IFRS has been adopted and made


    mandatory w.e.f. April 1,2016
    • IND -AS refers to Indian version of IFRS.
    • India has decided to converge with IFRS instead
    of adopting it in its original form.
    Benefits of Adopting IFRS

    • Financial Statements as per global standards.


    • Multiple reporting can be avoided.
    • Improve cross- border investment.
    • High quality and easy comparison,of financial
    statements.
    • Transparency in reporting of financial statements.
    • Higher level of Consistency.
    Benefits of Adopting IFRS

    • Benchmarking will become easy.


    • High Standards of financial disclosure.
    • Raise reputation and relationship of Indian
    corporate world with international financial
    community.
    • Enhance performance of economy at large.
    • Easy in raising capital from outside the country at
    low cost.
    Challenges of Adopting IFRS

    • Increased cost of adoption.


    • Lack of Skilled resources.
    • Difficulty in completing the changed regulatory
    requirements.
    • Multi-regulatory nature of country.
    • Challenges for small and medium accounting
    firms.
    Generally Accepted Accounting
    Principles (GAAP)
    • GAAP provides the rules of action and conduct for
    Principles of accounting.
    • Generally accepted accounting principles, or
    GAAP, are a set of rules that encompass the
    details, complexities, and legalities of business
    and corporate accounting. The Financial
    Accounting Standards Board (FASB) uses GAAP as
    the foundation for its comprehensive set of
    approved accounting methods and practices.
    Difference between GAAP &
    IFRS
    Basis: GAAP IFRS
    Nature • GAAP are in the • IFRS are in the nature
    nature of "Rules" to of "Principles" to be
    be followed in followed in
    preparation of preparation of
    financial statements. financial statements.

    • FASB is the authority • International


    responsible for Accounting Standard
    developing GAAP. Board deveops the
    Issuing IFRS
    Authority
    Difference between GAAP & IFRS
    • Three • Only FIFO and
    Inventory methods used weighted
    Valuation ie.LIFO,FIFO Average
    and weighted method can be
    Average. used.
    • GAAP, the
    research is • IFRS, the
    more focused review of the
    Methodology on the
    facts pattern is
    literature more
    thorough.
    Financial Reporting and Analysis,Dr.
    Priyanka Ostwal,Dr Sakshi Sharma
    •
    • Financial Reporting and Analysis by Meenu
    Gupta,Hersheen Kaur,Rekha Gupta.
    •
    •

    The End...

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