IFRS - Int'l Fin Reporting Std

Issued by IASB - Int'l Accounting Std Board (Principle-based/ Judgment vs. Rules-based as GAAP)

Convergence Project: diff b/w GAAP vs IFRS -

Conceptual Framework:

Objective of General Purpose Fin Reporting:

Based on Accrual Basis and Going Concern concept:

Assess amounts, timing, and uncertainty of future cash inflows to evaluate returns
Prospects for future cash inflows depends on resources available
Depend on efficiently and effectively management and governance based on economic and business factors

Qualitative Characteristics of Useful Fin Info:

Relevant:
- Predictive Value - predict future outcomes
- Confirmatory Value - provides feedback abt events/ transactions
Materiality
- Influence users' decisions
Faithfully Representation:
- Freedom From Error
- Neutrality
- Completeness
Enhance the usefulness of Fin Info:
- Comparability
- Understandability
- Timeliness
- Verifiability
Constraints:
- Cost/Benefit
- Going Concern - Assumption

5 Basic F/S Elements or Fin Position (Performance):

Capital Maintenance Adj:

IFRS - Profit (NI for GAAP)

Recognition & Measurement:

Measurement Approaches:

2 Basic concepts of Capital:

FASB (10) vs IASB (5) Framework:

10 FASB Elements: NI

5 IFRS Elements: Profit

Revenue is measured @ FV & Disclosures will include:

Financial Reporting Framework