WHAT ARE INTERNATIONAL FINANCIAL ACCOUNTING STANDARDS-IFRS?

International Financial Reporting Standards (IFRS) are a set of international accounting standards stating how particular types of transactions and other events should be reported in financial statements. IFRS are issued by the International Accounting Standards Board, and they specify exactly how accountants must maintain and report their accounts. IFRS were established in order to have a common accounting language, so business and accounts can be understood from company to company and country to country.

LIST OF INTERNATIONAL FINANCIAL ACCOUNTING STANDARDS-IFRS

IFRS1. First-time Adoption of International Financial Reporting Standards
IFRS2. Share-based Payment
IFRS3. Business Combinations
IFRS4. Insurance Contracts
IFRS5. Non-current Asset Held for Sale and Discontinued Operations
IFRS6. Exploration for and Evaluation of Mineral Assets
IFRS7. Financial Instruments: Disclosures
IFRS8. Operating Segments
IFRS9. Financial Instruments
IFRS10. Consolidated Financial Statements
IFRS11. Joint Arrangements
IFRS12. Disclosure of Interests in Other Entities
IFRS13. Fair Value Measurements

The Institute of Chartered Accountants of India (ICAI) has announced that IFRS will be mandatory in India for financial statements for the periods beginning on or after 1 April 2016 in a phased manner. There is a roadmap issued by MCA for adoption of IFRS.

Thus, International Financial Reporting Standards (IFRS) are designed as a common global language for business affairs so that company accounts are understandable and comparable across international boundaries. They are a consequence of growing international shareholding and trade and are particularly important for companies that have dealings in several countries. They are progressively replacing the many different national accounting standards. They are the rules to be followed by accountants to maintain books of accounts which are comparable, understandable, reliable and relevant as per the users internal or external.