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September 29, 2009

What is IFRS?

IFRS is the acronym for International Financial Reporting Standards. IFRS is used throughout the world except in the United States where U.S. GAAP (generally accepted accounting principles) is followed.

There is an urgency for the U.S. to adopt the IFRS because of the growth in global financial markets, global commerce, acquisition of U.S. companies by corporations outside of the U.S., multinational corporations having subsidiaries both inside and outside of the U.S., and so on. Since financial statements report two or three years of amounts, the amounts from earlier years will need to follow IFRS in order to be comparative.

Efforts are also under way for a simplified version of IFRS that would apply for small and medium sized privately held corporations.

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Comments

20 Responses to “What is IFRS?”

  1. Richard Cadena on September 30th, 2009 1:29 am

    I am in my 21st year as a Spanish to English translator of all types of documents generated by Mexico City based member firms of big 4 and 2nd tier international CPA firms (KPMG, PwC, Grant Thornton, RSM, Nexia, etc.). This IFRS issue is a really big issue. Mexico, my adopted country, has been in the process of migrating toward IFRS and no longer refers to what used to be Mexican GAAP. I also see that it is subject of intense discussion in the US. The AICPA is already sending out e-mail bulletins that it will publish its first edition of Accounting Trends and Techniques under IFRS, in addition to its traditional Accounting Trends and Techniques under US GAAP. Although I live in Mexico (been here over 43 years), I am closely watching how migration to IFRS is taking place in both countries and watching how it will affect both English and Mexican Spanish accounting, finance, and tax terminology and (boilerplate) writing styles in both languages. I highly recommend buying the new Accounting Trends and Techniques under IFRS at this year-end. I hope this is helpful.

  2. Richard Cadena on September 30th, 2009 1:39 am

    I forgot to mention that I am not CPA who went from accountant to translator, but rather I taught English as a second language prior to getting involved in translation, and accounting, finance, and tax, taken as a whole, are my areas of specialization. I sometimes translate a contract, bylaws, or articles of incorporation (corporate law documents) also sent to me by CPA firms.

  3. simret on September 30th, 2009 2:28 am

    Dear Sir, i need more notes about bank reiconsilation

  4. Ramon on September 30th, 2009 12:37 pm

    It is great to know that IFRS will be introduced to Mexico, because that way I can work in the United States as well as Mexico and other countries whre where KPMG has offices. I’m currently pursuing my Bachelor Degree in Accounting and I have been watching all the changes in Accounting as well as Taxation and I would to work as Taxation Auditor for such global company.

  5. Muhammad Arshad (ACMA, APA) on October 1st, 2009 12:39 am

    This defination IFRS is very simple. Some explainations to this should be given for biginners. Means the process of issuance of IFRS. How Many IFRS has been issued till date. What is IAS and why IAS is known as IFRS now etc. etc.

  6. Haron njau on October 1st, 2009 2:07 am

    please elaborate in a more detailed manner about IFRS and differentiate this from GAAP

  7. king on October 1st, 2009 1:48 pm

    Please i want to have full and detailed book of all the topics listed under “Category of Questions”and other accounting topics as well as other regulation governing accounting,eg IFRS etc.thanks.

  8. sumit on October 2nd, 2009 7:17 am

    Please i want to have full and detailed book of all the topics listed under “Category of Questions”and other accounting topics as well as other regulation governing accounting,eg IFRS etc and related topics thanks

  9. Mohamed abubaker on October 3rd, 2009 1:34 pm

    Many thanks for Mr.Harold Averkamp for his marvellaous web site, really it is very interesting site. I work in Aden Refinery Company as chief accountant my subordonates are more than 100 employees
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  10. Adel on October 5th, 2009 10:15 am

    HI
    I’d like to ask for something , in my company the pervoius auditor didn’t make a provision for the income tax for the last year so now we are doing the tax return & its payments so we need to adjust the payable amount , my opinoin is to be deducted from the retained earnings of the pervoius year other opinoin is to be deducted from the otherincom account or to be allocated on the partner current account so I believe in mine as we would like to show the fiscal year operation result correctlly , Your reply is highly appreciated
    Thanks
    Adel Ismail

  11. ACoach on October 5th, 2009 11:57 am

    @sumit, @king:
    You can find all our printed materials for those topics for sale here:
    http://www.accountingcoach.com/ebook.html

  12. KJ Rodgers on October 6th, 2009 2:44 pm

    Thank you for clarifying this subject. I had asked about it in you “What is GAAP.” This is a hot topic right now in the accounting world. I have following the debates and can understand both side. What is the most nerve racking is the potential impact on smaller companies while we make the shift. But if we do not go this route, we may be excluded in some future talks regarding the world financial markets. http://www.blogs.vbpoutsourcing.com

  13. Jac on October 8th, 2009 7:28 am

    I’m confused with which is following which?! according to this posted note…”There is an urgency for the U.S. to adopt the IFRS…” so U.S. to adopt I.F.RS., whilst from my Finance Manager, who is a California licensed CPA ;) — it is the I.F.R.S. that is moving into the U.S. GAAP (and he insist on this one). I told him about this posted note, coz this is what I know. The goal of I.F.R.S. is to unify diversities on financial reporting standards all over the world. So which is which? :D

  14. destiny on October 9th, 2009 4:57 am

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  15. destiny on October 9th, 2009 5:02 am

    this is my correct email address

  16. REMYASAJITH on October 10th, 2009 6:07 am

    hi

  17. OJO OLAIYA WAHAB on October 15th, 2009 10:04 am

    i am very interesting in this topic IFRS, before i go further i we like to thank the founder of these site who make the site useful for energizes our carrier in accounting. my question i more expatiate in IFRS and GAAP.

    Thanks

  18. Louis Nubaridoo on October 20th, 2009 9:38 pm

    I am an accounting final year student. My Project topic is Accounting control and profitability in Supermarket Business. Please How did accounting Control aid Profitability in Supermarket and Chain store business.

    Louis Nubaridoo
    Port HArcourt
    Nigeria

  19. bhagyashee ashar on October 30th, 2009 7:26 am

    i am fybcom student iam very weak in account sir will you help me in 12th i only get 53 in account

  20. Ebenezre on November 18th, 2009 4:08 am

    i need to know why IFRS is adopted by the emerging economies. please i need it by tomorrow

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