IFRS – International Financial Reporting Standards


Initiation

The International Financial and Reporting Standards, IFRS for short, are internationally recognized accounting standards, which the IASB (Int. Accounting Standards Board) issued. These measures should allow that financial statements of companies and large corporations, detached from the national rules, can be compared with each other.

Objectives of IFRS

The financial statements, which have been created with IFRS, should be primarily a comprehensive picture of the financial, assets and earnings. The top priorities are the accrual basis of accounting and the going concern basis.

  • The IFRS ensures investors protection
  • Strengthen confidence in the freedom of capital market –
  • Build a fully integrated capital market of effective, smoothly and efficiently
  • Allow the comparability of financial statements
  • Increased transparency for more effective audits and controls

IFRS

IFRS 1                        First-time Adoption of IFRS

IFRS 2            Share-based Payment

IFRS 3            Business Combinations

IFRS 4            Insurance Contracts

IFRS 5-          For-sale- non Standing -current assets and discontinued operations

IFRS 6            Extraction and evaluation of mineral resources

IFRS 7                        Disclosures about Financial Instruments

IFRS 8            Segment reporting from 2009

IAS 1               Presentation of Financial Statements

IAS 2              Inventories

IAS 7              Statement of Cash Flows

IAS 8              Accounting Policies and Mehtodenänderungen

IAS 10                        Events after the reporting period

IAS 11             Construction Contracts

IAS 12                         Income Taxes

IAS 16                        Properties, Plant

IAS 17                         Leases

IAS 18                        Revenue

IAS 19                        Employee Benefits

IAS 20            Government Grants

IAS 21                         Changes in exchange rates

IAS 23                        Borrowing costs

IAS 24                        Related parties and enterprises

IAS 26                        financial statements of retirement benefit plans

IAS 27                        Consolidated and Separate Financial Statements

IAS 28                        Investments in associated companies

IAS 29                        Hyperinflation

IAS 31                         Interests in Joint Ventures

IAS 32                        Presentation of financial instruments

IAS 33                        Earnings per share

IAS 34                        Interim Financial Reporting

IAS 36                        Impairment of Assets

IAS 37                        Provisions and Contingencies

IAS 38                        Intangible Assets

IAS 39                        Financial Instruments Recognition and Measurement

IAS 40            Investment Property

IAS 41                        Agriculture

Differences between Swiss GAAP FER and OR

If you balance by the standard of OR the company gets more freedom in its decisions. The main focus with it is at creditor protection. One indicator for that is the prudence principle which explicitly calls hidden reserves. On the other hand IFRS centers more around shareholder value and sets the true & fair principle as premise. Swiss GAAP FER orients more on the second principle and could be considered a IFRS light. But with its approx. 150 pages it isn’t the size of IFRS which counts almost 2500 pages.

In the future I will cover the most important points in the next articles. If you have already some questions about IFRS and need some support I’d be happy if you contact me.

Thank you for your attention and interest.

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