Links relevant to IFRS

Official site of body issuing IAS and IFRS is http://www.iasb.org/ . Unaccompanied versions of IAS / IFRS can be downloaded from the site.

IAS 1 Statement of comprehensive income

An entity can present all items of incomes and expenses in either:

• A single comprehensive statement; or
• Two statements – First displaying components of profit or loss, Second beginning with profit / loss and displaying other comprehensive income.

As a minimum SOCI shall include line items presenting amounts for the period

• Revenue
• Finance costs
• Share of profit or loss of associates and JV’s using equity method
• Tax expense
• Post tax profit or loss of discontinued operations
• Profit or loss
• Each component of other comprehensive income classified by nature
• Share of comprehensive income of associates and JV’s using equity method

Disclose separately profit attributable to – non-controlling interests and owners of parent

No items of income or expense shall be presented as extraordinary items.

The analysis of expenses and revenues shall be presented using classification either based on there nature or function whichever provides more reliable and relevant information.

IAS 1 Presentation of Financial Statements

IAS 1 requires “a complete set of financial statements” defined (in para 10) as comprising of:
· A statement of financial position as at the end of the period;
· A statement of comprehensive income for the period;
· A statement of changes in equity for the period;
· A statement of changed in cash flows for the period;
· Notes, comprising of a summary of significant accounting policies and other explanatory information

An entity shall not describe financial statements as complying with IFRS unless they comply with all the requirements of IFRS’s

Virtually in all cases an entity achieves a fair presentation by compliance with applicable IFRS’s . Further a fair presentation requires selection of accounting policies in accordance with IAS 8 , apart from general principles “of presenting information in a manner that provides relevant, reliable, comparable and understandable information.

Skill pool for IFRS application in India

Sucess of IFRS application would greatly depend on the ease at which the information on IFRS is avalaible in the public domain. Presently very little knowledge is avalaible in the public domain. Information and knowledge is avalaible to very few privelaged people.

There are different stake-holders from preparers to users of financial statements. There are thousands of accountants, accounts managers and users who need to have easy access to the knowledge / information on IFRS.

The objective of this blog is to make information on IFRS easily accessible to every concerned person.