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    International Financial Reporting Standards (Ifrs) : Presented By, Siva Priyanka Vamshidhar Reddy Manasa Reddy

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    Vamshidhar Reddy
    The document provides an overview of International Financial Reporting Standards (IFRS). It discusses that IFRS was developed in 2001 to establish accounting standards for financial statements to make them comparable globally. Adopting IFRS allows for greater cross-border capital raising and trade. IFRS follows a principle-based approach where transactions are reported based on economic substance rather than legal form. Indian companies will face challenges but also benefits from adopting IFRS such as improved comparability and access to global capital markets.

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    International Financial Reporting Standards (Ifrs) : Presented By, Siva Priyanka Vamshidhar Reddy Manasa Reddy

    Uploaded by

    Vamshidhar Reddy
    73 views16 pages
    The document provides an overview of International Financial Reporting Standards (IFRS). It discusses that IFRS was developed in 2001 to establish accounting standards for financial statements to make them comparable globally. Adopting IFRS allows for greater cross-border capital raising and trade. IFRS follows a principle-based approach where transactions are reported based on economic substance rather than legal form. Indian companies will face challenges but also benefits from adopting IFRS such as improved comparability and access to global capital markets.

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    IFRS

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    The document provides an overview of International Financial Reporting Standards (IFRS). It discusses that IFRS was developed in 2001 to establish accounting standards for financial statements to make them comparable globally. Adopting IFRS allows for greater cross-border capital raising and trade. IFRS follows a principle-based approach where transactions are reported based on economic substance rather than legal form. Indian companies will face challenges but also benefits from adopting IFRS such as improved comparability and access to global capital markets.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    73 views16 pages

    International Financial Reporting Standards (Ifrs) : Presented By, Siva Priyanka Vamshidhar Reddy Manasa Reddy

    Uploaded by

    Vamshidhar Reddy
    The document provides an overview of International Financial Reporting Standards (IFRS). It discusses that IFRS was developed in 2001 to establish accounting standards for financial statements to make them comparable globally. Adopting IFRS allows for greater cross-border capital raising and trade. IFRS follows a principle-based approach where transactions are reported based on economic substance rather than legal form. Indian companies will face challenges but also benefits from adopting IFRS such as improved comparability and access to global capital markets.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 16

    INTERNATIONAL FINANCIAL

    REPORTING STANDARDS (IFRS)

    Presented By,
    Siva Priyanka
    Vamshidhar Reddy
    Manasa Reddy
    INTRODUCTION
    IFRS is an accounting framework that
    establishes recognition, measurement, presentation
    and disclosure requirements relating to transactions
    and events that are reflected in the financial
    statements. IFRS was developed in the year 2001
    by the International Accounting Standards Board
    (IASB).
    NEED OF IFRS
     To make a common platform for better
    understanding of accounting, internationally.
     Synchronization of accounting standards across
    the globe. 
     To create comparable, reliable, and transparent
    financial statements.
     To facilitate greater cross-border capital raising and
    trade.
     To have company-wide one accounting language.
    IFRSS – APPROACH FOLLOWED
     IFRSs are principle-based standards.
     The principle-based standards are those
    where the transactions can not be
    manipulated easily to achieve a particular
    accounting.
     The Financial Accounting Standards Board
    (FASB), USA, is adopting principle-based
    approach with IASB.
    IFRSS – APPROACH FOLLOWED
    (CONTD..)

     IFRSs lay down treatments based on the


    economic substance of various events and
    transactions rather than their legal form.

     The application of this approach may result


    into events and transactions being
    presented in a manner different from their
    legal form.
    SUGGESTIVE GUIDELINES
     Understanding and analyzing the impact of IFRS on
    financial performance
     Obtaining the new data required and adapting
    systems to provide it
     Finding the resources and expertise needed to
    make the changes
     Meeting employee training and knowledge sharing
    needs
     Aligning systems for reporting for statutory,
    regulatory and internal purposes
     Gaining shareholder and analyst understanding of
    the impact of changing to IFRS.
    IFRS AND INDIAN
    CORPORATES
     The use of international financial reporting standards (IFRS)
    as a universal financial reporting language is gaining
    momentum across the globe.
     The Institute of Chartered Accountants of India (ICAI) has
    recently released a concept paper on Convergence with IFRS
    in India, detailing the strategy for adoption of IFRS in India
    with effect from April 1, 2011. This has been strengthened by
    a recent announcement from the Ministry Of Corporate Affairs
    (MCA) confirming the agenda for convergence with IFRS in
    India by 2011.
     Adopting IFRS by Indian corporates is going to be very
    challenging but at the same time could also be rewarding.
    Indian corporates are likely to reap significant benefits from
    adopting IFRS.
    BENEFITS OF IFRS ON
    INDIAN CORPORATES
    There are likely to be several benefits to corporates in the Indian
    context as well. These are:
     Improvement in comparability of financial information and
    financial performance with global peers and industry
    standards .
     Adoption of IFRS is expected to result in better quality of
    financial reporting due to consistent application of accounting
    principles and improvement in reliability of financial
    statements.
     Better access to and reduction in the cost of capital raised
    from global capital market since IFRS are now accepted as a
    financial reporting framework for companies seeking to raise
    funds from most capital markets across the globe.
    IMPACT OF IFRS ON OIL & GAS
    INDUSTRY
    Areas of Potential Change
     Decommissioning estimates

     Asset exchanges

     Derivatives and long term contracts

     Take or pay arrangements

     Production imbalances between joint ventures


    EFFECTS OF IFRS ON IT
    INDUSTRY
    The main effect on the IT industry is that the
    changes in the systems and in the updation of the
    existing to the newer version of IFRS enabled
    accounting software
    FIVE CONSIDERATION
    UNDER
    IFRS
     IFRS is an accounting-driven but it can drive major changes
    to IT systems as well as business processes and personnel.
     Experience indicates that IT costs generally constitute more
    than 50 percent of IFRS conversion costs.
     Organizations benefit when they identify and integrate the
    efforts of the IT team early in the IFRS conversion process.
     IT efforts will comprise a mix of short- and long-term projects
    within the organization’s overall IFRS initiative.
     The IFRS conversion effort provides opportunities for
    achieving synergies with other IT projects and strategic
    initiatives.
    IFRS:IMPACT ON INDIAN
    BANK
     The financial impact of convergence with IFRS (International
    Finance Reporting System) will be significant for banks in
    India, particularly in areas relating to loan loss provisioning,
    financial instruments and derivative accounting according to
    auditing and consultancy firm KPMG.
     IFRS: Developing a roadmap to convergence for the Indian
    banking industry’, mentions how this is likely to impact
    financial performance, directly affecting capital adequacy
    ratios and the outcomes of valuation metrics that analysts use
    to measure and evaluate performance.
     In banking companies, financial reporting policies for provision
    for loan losses and investments are specified by the RBI.
    TYPES OF IFRS
    IFRS 1 First-time Adoption of IFRS
    IFRS 2 Share-based Payment
    IFRS 3 Business Combinations
    IFRS 4 Insurance Contracts
    IFRS 5 Non-current Assets Held for Sale and
    Discontinued Operations
    IFRS 6 Exploration for and evaluation of Mineral
    Resources
    IFRS 7 Financial Instruments: Disclosures
    IFRS 8 Operating Segments
    GENERAL DIFFERENCES
     IFRS provides much less overall detail than GAAP
     IFRS contains relatively little industry-specific
    instructions as compared to GAAP.
     IFRS use a single-step method for impairment
    write-downs rather than the two-step method used
    in U.S. GAAP
     IFRS does not permit Last In First Out (LIFO).
    DISADVANTAGES
     U.S. issuers without significant customers or
    operations outside the United States may resist
    IFRS because they may not have a market
    incentive to prepare IFRS financial statements.
     Many people also believe that U.S. GAAP is the
    gold standard, and that something will be lost with
    full acceptance of IFRS.
    Thank you

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