Global Adoption of International Financial Reporting Standards

961 Words2 Pages
bulb-icon

Recommended: Structure of international financial reporting standards in various countries

2.2. International Financial Reporting Standards (IFRS) Adoption
International Financial Reporting Standards (IFRSs) is a set of accounting standards developed by an independent, non-profit making organization popularly known as International Accounting Standard Board (IASB) which was created under the laws of state of Delaware, United States of America, on 8 March, 2001 (IFRS foundation) (IFRS.org, 2017) The objective of the IFRS is to present a unique and comparable accounting framework on how to prepare and disclose their financial statements globally. (Cotter, D., 2012) The most important change that occurred in the history of accounting was the adoption of International Financial reporting standards all around the world.
During the period …show more content…

The Institute of Chartered Accountants of Sri Lanka (CA Sri Lanka) is seen as a body sovereign charged with the duty to develop and issue Sri Lankan Accounting Standards (SLAS) for financial statement preparers and users.
The Institute of Chartered Accountants of Sri Lanka (CA Sri Lanka) in 2011 took the steps to adopt the International Financial Reporting Standards (IFRS) on 1 January 2011 successfully in the country by issuing Sri Lanka Financial Reporting Standards (SLFRS) and Sri Lanka Accounting Standards (LKAS) which consist of preparing the financial statements in compliance with IFRS comprises the followings: Statement of Financial Position, Statement of Comprehensive Income, Statement of Changes in Equity, Statement of Cash Flows and Accounting Policies.
With the adoption of the new Sri Lanka Financial Reporting Standards, entities are required to apply SLFRS 1 – First time adoption of Sri Lanka Financial Reporting Standards for annual financial periods beginning on or after 1 January 2012.
The Sri Lanka Accounting and Auditing Standards Act No. 15 of 1995 define a class of companies as Specified Business Enterprises (SBEs). SBEs

Show More
Related

  • The United States Should Convert to IFRS

    1069 Words  | 3 Pages

    Switching to IFRS will help not just companies but also investors and public globally to compare financial statements. If every country has different financial standards, if would be problematic to compare how each company stands because they are not the same.

    Read More

  • AICPA Code Of Ethics Case Study

    1033 Words  | 3 Pages

    Which of the rules of AICPA Code of Conduct is most related section 5062.2 of the California Accountancy Act? Explain your

    Read More

  • Bausch + Lomb's Unethical Practices and the FASB Codifications

    1401 Words  | 3 Pages

    Financial Accounting Standards Board (FASB). Accounting Standards Codification TM. Financial Accounting Standards Board (FASB), 2010. Web. 16 May 2014.

    Read More

  • FASB Accounting Standards Codification

    916 Words  | 2 Pages

    According to the FASB Accounting Standards Codification, goodwill is “An asset representing the future economic benefits arising from other assets acquired in a business combination or an acquisition by a not for profit entity...” (glossary). Goodwill is measured by the premium price we pay for a company; we calculate premium price by subtracting the amount we paid by the estimated price (Fair value) of the company and if we paid more goodwill is created. Goodwill is an intangible asset so it has an indefinite life because it cannot lose value over a specific amount of time. We test for impairment to find out if goodwill has kept its value or if it has declined and we test for impairment on an annual basis. However, goodwill in FASB Accounting Standards

    Read More

  • Telsco Corporation: Case Study: Telco Corporation

    1450 Words  | 3 Pages

    Conclusion: It is evident that if these financial practices were to be followed, David Johnston, the CRA, the business, and its stakeholders will be satisfied. A business must obey IFRS standards, as it provides a corporation with accurate measures of finance and

    Read More

  • The Financial Accounting Standards Board (FASB)

    946 Words  | 2 Pages

    "Accounting Standards Codification: Notice to Constituents (v4.1) About the Codification." FASB: Financial Accounting Standards Board. 30 Apr. 2010. Web. 26 Nov. 2010. .

    Read More

  • Comparing GAAP And IFRS And The Accounting Standards And Differences

    1346 Words  | 3 Pages

    GAAP and IFRS have their similarities as well as differences. “GAAP is the accounting standard used in the US, while IFRS is the accounting standard used in over 110 countries around the world. GAAP is considered a more rules based system of accounting, while IFRS is more principles based” (Diffen). The Diffen site compared GAAP and IFRS elements using a chart. The chart is broken down into sections such as performance elements, required documents, inventory estimates and reversal, purpose of framework, etc. GAAP and IFRS both use revenue, expenses, assets, and liabilities as performance elements; but with GAAP gains, losses, and comprehensive income are added. GAAP and IFRS also use some of the same financial statements such as the balance

    Read More

  • The Differences Between the GAAP and the IFRS Accounting Systems

    1089 Words  | 3 Pages

    What is IFRS, and what is its significance in the world market? In 2001 the International Accounting Standards Board, or IASB, was created to develop a set of standards by which global financial statuses could be reported. According to financialstabilityboard.org, this set of standards, known as the International Financial Reporting Standards, or IFRS, falls under the jurisdiction of the IFRS Foundation, which is a non-profit, private and independently run entity that exists for the public interest, is based on four principle objectives. The first is to develop a single set of international financial reporting standards (IFRS). This set would be high in quality, readily understandable, easily enforceable, and acceptable world-wide. The second objective is to encourage the use of this set of standards in the international business world. Thirdly, the ISAB would like to monitor the needs of different sizes and types of businesses in different settings. The fourth objective is to promote the adoption of the IFRS by converging national accounting standards wit...

    Read More

  • Personal Statement: Accounting And Finance

    971 Words  | 2 Pages

    I have applied the IFRS to audit half-year income statement and statement of finical position from domestic sub-company or oversea branches. This allows me to understand the difficultly of dealing with accounting report form different nations. For example, we have to negotiate each report from the U.S. with their reporter by phone. It would take incredibly long time to explain the difference in order to adjust the figures in the reports. During the stuff training, we have been taught that to be professional at everywhere and anytime. Moreover, I realise that the most important feature to be a professional accountancy is responsibility. This is because that a unit of misallocation will cost other team number a huge amount of work to correct it. The experience of taking notes of weekly conferences between senior managers and PWC partner has indicates that how does change in financial policy influence the accounting treatment. For instant, since vice-perminster Mr Le Ke Qiang who visited China Construction Bank at earlier May. He point out that the Rate of Non-Performing Loans could not exceed 7% in the “BIG Four” Chinese bank. This has led Chinese bank to relax its accounting standard of credit rating. It allows me to understand the relationship between government and financial

    Read More

  • Corporations Law assignment: Lee's Business Expansion

    1159 Words  | 3 Pages

    Receive from ASIC the certificate of registration – company has full legal capacity and powers of an individual: s 124. The company remains in existence until it is deregistered: s119

    Read More

  • Essay On Positive Accounting Theory

    3052 Words  | 7 Pages

    AASB, Australian Accounting Standards Board, Statement of Accounting Concepts SAC4 ‘Definition and recognition of the elements of financial stat

    Read More

  • Essay On IFRS

    1820 Words  | 4 Pages

    ...pt. That is however, not to say that it is without its problems, as previously discussed, it can possibly lead to a two tier system of reporting, despite reducing complexity its flexibility can limit comparability and place a heavy onus in terms of judgement of the preparer. Finally its simplifications may perhaps infringe upon the ease of which a private entity wishes to become public listed company. However, the disadvantages of adopting the standard are fat outweighed by the potential benefits it offers. As more time goes on, we will no doubt see more countries and companies adopting the standard. If capital providers (primarily banks) clearly understand and have confidence in the financial statements prepared under the guidance of the standard; then an SMEs ability to obtain the capital it need improves. Ultimately the economy in which it operates improves.

    Read More

  • International Financial Reporting Standards

    1068 Words  | 3 Pages

    The globalization of business has resulted in the need for compatible accounting standards that can be used internationally for financial reporting. As a result, the International Financial Reporting Standards (IFRS) were developed by the International Accounting Standards Board (IASB) to unify the various financial reporting methods and create a single accounting standard which can be applied to any financial statement worldwide (Byatt). The global standardization of financial reporting will increase the readability and enhance comparability of globally traded companies’ financial statements, without the need of conversion or translation. There are a few main differences between the International Financial Reporting Standards (IFRS) and the U.S. Generally Accepted Accounting Principles (U.S GAAP). The increasing recognition and acceptance of the International Financial Reporting Standards by accounting professionals in the United States, will affect the way in which the U.S will record financial statements in the future.

    Read More

  • Role and Evolution of The International Accounting Standards Board

    693 Words  | 2 Pages

    The International Accounting Standards Board, (IASB), began life as the International Accounting Standards Committee (IASC) in the 1973. The IASC was created in June 1973 as a result of an agreement by the accountancy bodies of Australia, Canada, France, Germany, Japan, Mexico, the Netherlands, the United Kingdom and Ireland and the United States. These countries constituted the Board of IASC at that time.

    Read More

  • Accounting Regulatory Bodies Paper

    721 Words  | 2 Pages

    The third organization that helps to regulate the accounting standards is the IASB. “Our mission is to develop, in the public interest, a single set of high quality, understandable and international financial reporting standards (IFRSs) for general purpose financial statements”(IASB 2008,¶ 1). The IASB consists of a board that is made up from nine different countries with the sole purpose of expanding accounting standards. Their main hope and goal is to one day that there will be only one set of accounting standards that will be used throughout the world.

    Read More

More about Global Adoption of International Financial Reporting Standards

Open Document