International Financial Reporting Standards (IFRS) Annual Update at PwC Namibia Business School

What is International Financial Reporting Standards (IFRS)?

International Financial Reporting Standards (IFRS) are a set of accounting standards that govern how particular types of transactions and events should be reported in financial statements. They were developed and are maintained by the International Accounting Standards Board (IASB).

Overview

International Financial Reporting Standards (IFRS) are a set of accounting rules for the financial statements of public companies that are intended to make them consistent, transparent, and easily comparable around the world. IFRS currently has complete profiles for 166 jurisdictions.

Frequently Asked Question

What are the 4 principles of IFRS?

IFRS requires that financial statements be prepared using four basic principles: clarity, relevance, reliability, and comparability.

What is IFRS framework?

IFRS is the international accounting framework within which to properly organize and report financial information. It is derived from the pronouncements of the London-based International Accounting Standards Board (IASB). It is currently the required accounting framework in more than 120 countries.

How many rules are in IFRS?

The following is the list of IFRS and IAS issued by the International Accounting Standard Board (IASB) in 2019. In 2019, there are 16 IFRS and 29 IAS.

What is a financial reporting?

Financial reporting is the financial results of an organization that are released its stakeholders and the public. This reporting is a key function of the controller, who may be assisted by the investor relations officer if an organization is publicly held.

What is the objective of financial reporting?

The objective of financial reporting is to track, analyse and report your business income. The purpose of these reports is to examine resource usage, cash flow, business performance and the financial health of the business. This helps you and your investors make informed decisions about how to manage the business.

How are IFRS standards developed?

IFRS^® Standards are set by the International Accounting Standards Board (Board) and are used primarily by publicly accountable companies—those listed on a stock exchange and by financial institutions, such as banks.

What is financial reporting and why it is important?

Financial reporting refers to standard practices to give stakeholders an accurate depiction of a company’s finances, including their revenues, expenses, profits, capital, and cash flow, as formal records that provide in-depth insights into financial information.

Why financial reports are important?

Financial statements are important to investors because they can provide enormous information about a company’s revenue, expenses, profitability, debt load, and the ability to meet its short-term and long-term financial obligations.

What are the main components of financial reporting?

They are: (1) balance sheets; (2) income statements; (3) cash flow statements; and (4) statements of shareholders’ equity. Balance sheets show what a company owns and what it owes at a fixed point in time.

What are the characteristics of financial reporting?

The two fundamental qualitative characteristics of financial reports are relevance and faithful representation. The four enhancing qualitative characteristics are comparability, verifiability, timeliness and understandability.

How is financial reporting done?

Financial reporting consists of four primary documents. The balance sheet lists the company’s assets, liabilities, and equity. It tells you what the company owns, what it owes, and how much the owners have invested in the company. The income statement discloses what the company earned and what it spent to earn it.

What are assumptions of IFRS?

Four underlying assumptions characterizes the IFRS: going concern, accrual basis, stable measuring unit assumption and units of cost purchasing power.

What are the three primary objectives of financial reporting?

The objectives of financial reporting cover three areas, dealing with useful information, cash flows, and liabilities.

What is a financial report example?

Financial reporting includes the following: External financial statements (income statement, statement of comprehensive income, balance sheet, statement of cash flows, and statement of stockholders’ equity) The notes to the financial statements.

What are the qualitative characteristics of IFRS?

Financial reporting quality increased in the post-IFRS adoption across the five qualitative features (i.e. relevance, faithful representation, comparability, understandability and timeliness) examined.