1453377
Description
Mind Map by Thiffany Martin, updated more than 1 year ago
|
Created by Thiffany Martin
over 9 years ago
|
|
Financial Reporting &
IFRS
- History & Structure
of the IASB
- 1973 : IASC -
Father
- Issues IAS
- IASC Foundation -
independent organisation
- Trustees
- appoint IASB
members
- exercise
oversight
- raise the
needed
funds
- appoint IASB
members
- objectives
- to bring about convergence of national
accounting standards and IAS & IFRS to
high quality solutions
- to promote the use &
rigorous application of the
standards
- to develop in the public interest a
single set of high quality,
understandable, & enforceable global
accounting standards
- that require high quality, transparent &
comparable information in F/S & other
financial reporting
- to help participants in the world's
capital markets & other users make
economic decisions
- to help participants in the world's
capital markets & other users make
economic decisions
- that require high quality, transparent &
comparable information in F/S & other
financial reporting
- to bring about convergence of national
accounting standards and IAS & IFRS to
high quality solutions
- IASB - Son
- Independent &
privately-funded accounting
standard setter (London)
- Issues IFRS
which includes
IAS
- sole responsibility for
setting accounting
standards
- 14 board members -
diff. countries - variety
of functional backgrounds
- members not dominated
by any particular
constituency / regional
interest
- technical
expertise
- 14 board members -
diff. countries - variety
of functional backgrounds
- Independent &
privately-funded accounting
standard setter (London)
- Trustees
- to promote the
harmonisation of the
accounting standards
- requirement of the
European Commission -
listed companies -
European Union -
prepare the F/S in
accordance to IFRS
- endorsement of
IOSCO on IFRS /
IAS
- requirement of the
European Commission -
listed companies -
European Union -
prepare the F/S in
accordance to IFRS
- Issues IAS
- 1973 : IASC -
Father
- Interpretations
- IASB issues
- IFRS (13 sets -
IFRS 1 to 13)
- IAS (29 sets - 12
withdrawn - IAS 1 to 41)
- Difference
- IASB designated its
accounting standards as
IFRS
- IAS were issued by
IASC
- After IASB, IFRS
includes IAS
- After IASB, IFRS
includes IAS
- IAS were issued by
IASC
- IASB designated its
accounting standards as
IFRS
- Difference
- SIC & IFRIC (9 SIC &
13 IFRIC sets)
- IFRS (13 sets -
IFRS 1 to 13)
- IASB issues
- Objective
- to resolve & reconcile
the accounting
differences in each
country and place
- to resolve & reconcile
the accounting
differences in each
country and place
- Current Trends &
Future Challenges
- Trends
- globalization of
accounting standards &
convergence to IFRS
- convergence on
terminology to be
used
- convergence on
terminology to be
used
- Fair value
measurement
- more
relevant
- should reflect market
condition at the balance
sheet - revalued at
each balance sheet
- more
relevant
- Less accounting
choices would be
available
- Off-balance sheet
item must be
recognised in the
balance sheet
- risk approach /
oriented disclosures
are required
- globalization of
accounting standards &
convergence to IFRS
- Challenges
- Historical
accounting
differences
- corporate
failure
- Limited experience
& time consuming
- Further changes in
IFRS may occur
- Further changes in
IFRS may occur
- does not have mechanism to
resolve application dispute,
inconsistent application /
misapplication issue
- If any dispute, no international
organization - power to enforce IFRS
& assure entities are really in
compliance with the IFRS
- Fair value accounting
was blamed & increasing
pressure on IASB &
IFRS
- Historical
accounting
differences
- Trends
- Application &
Use
- general
purpose
F/S
- other financial
reporting
- comprises
information outside
the F/S
- assists -
interpretation -
complete set of F/S
- improves users' ability -
make efficient economic
decisions
- assists -
interpretation -
complete set of F/S
- comprises
information outside
the F/S
- content
perspective
- sets out recognition,
measurement, presentation, &
disclosure requirements dealing
with transactions
- equal
authority
- bold
- main
principles
- main
principles
- plain
- bold
- sets out recognition,
measurement, presentation, &
disclosure requirements dealing
with transactions
- entity
perspective
- apply to the general
purpose F/S & other
financial reporting
- all
profit-orientated
entities
- not-for-profit public &
government entities may find
them appropriate
- not-for-profit public &
government entities may find
them appropriate
- all
profit-orientated
entities
- apply to the general
purpose F/S & other
financial reporting
- general
purpose
F/S
- Authority
- achieves its
objectives
- promoting the use of those standards in
general purpose F/S & other financial
reporting
- developing & publishing
IFRS
- promoting the use of those standards in
general purpose F/S & other financial
reporting
- no authority to require
compliance with its
accounting standards
- where IFRS are the required
accounting standards / an entity
chooses to comply with IFRS
- requirements of all IFRS should
be regarded as mandatory
- requirements of all IFRS should
be regarded as mandatory
- where IFRS are the required
accounting standards / an entity
chooses to comply with IFRS
- rigorous & open
due process
- high
quality
- developed only after giving IASB's
constituencies opportunities to
make their views known at several
points in the standard setting due
process
- high
quality
- Procedure for
developing an IFRS
- Set an
agenda
- Plan a
project
- Develop & publish a
discussion paper
- Develop & publish an
exposure draft
- Develop & publish
an IFRS
- Procedures after an
IFRS is issued
- Procedures after an
IFRS is issued
- Develop & publish
an IFRS
- Develop & publish an
exposure draft
- Develop & publish a
discussion paper
- Plan a
project
- Set an
agenda
- achieves its
objectives
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