IFRS — International Financial Reporting Standards
Definition: Global accounting standards issued by the IASB; required or permitted in 140+ jurisdictions
Global accounting standards issued by the IASB; required or permitted in 140+ jurisdictions
Evolution from IAS
The International Accounting Standards (IAS) were issued from 1973 to 2001 by the International Accounting Standards Committee (IASC), a part-time body founded in London by professional accountancy organizations from nine countries. The IASC produced 41 standards (IAS 1–41), several of which have since been superseded or withdrawn.
In 2001 the IASC was replaced by the full-time International Accounting Standards Board (IASB), which adopted all existing IAS standards and began issuing new standards under the IFRS label starting with IFRS 1 in 2003. Today the active body of standards comprises 24 IAS standards still in force alongside 17 IFRS standards.
IFRS vs. GAAP
IFRS and US GAAP are the two dominant financial reporting frameworks. IFRS is principles-based and used in 140+ jurisdictions; US GAAP is rules-based and applies primarily within the United States.
| Area | IFRS | US GAAP |
|---|---|---|
| Approach | Principles-based | Rules-based |
| Inventory | LIFO prohibited | LIFO permitted |
| Development costs | Capitalize if criteria met | Expense as incurred (except software) |
| Impairment reversal | Allowed (except goodwill) | Not allowed |
| Revaluation of PP&E | Permitted (revaluation model) | Not permitted |
| Revenue standard | IFRS 15 | ASC 606 (converged) |
| Lease standard | IFRS 16 (single model) | ASC 842 (finance vs. operating) |
| Issuing body | IASB | FASB |
Sub-topics (38)
- IAS 1 — Presentation of Financial Statements
- IAS 2 — Inventories
- IAS 7 — Statement of Cash Flows
- IAS 8 — Accounting Policies, Changes in Estimates and Errors
- IAS 10 — Events After the Reporting Period
- IAS 12 — Income Taxes
- IAS 16 — Property, Plant and Equipment
- IAS 19 — Employee Benefits
- IAS 20 — Accounting for Government Grants
- IAS 21 — Effects of Changes in Foreign Exchange Rates
- IAS 23 — Borrowing Costs
- IAS 24 — Related Party Disclosures
- IAS 26 — Accounting and Reporting by Retirement Benefit Plans
- IAS 27 — Separate Financial Statements
- IAS 28 — Investments in Associates and Joint Ventures
- IAS 29 — Financial Reporting in Hyperinflationary Economies
- IAS 32 — Financial Instruments: Presentation
- IAS 33 — Earnings Per Share
- IAS 34 — Interim Financial Reporting
- IAS 36 — Impairment of Assets
- IAS 37 — Provisions, Contingent Liabilities and Contingent Assets
- IAS 38 — Intangible Assets
- IAS 40 — Investment Property
- IAS 41 — Agriculture
- IFRS 1 — First-time Adoption of IFRS
- IFRS 2 — Share-based Payment
- IFRS 3 — Business Combinations
- IFRS 5 — Non-current Assets Held for Sale and Discontinued Operations
- IFRS 7 — Financial Instruments: Disclosures
- IFRS 8 — Operating Segments
- IFRS 9 — Financial Instruments
- IFRS 10 — Consolidated Financial Statements
- IFRS 11 — Joint Arrangements
- IFRS 12 — Disclosure of Interests in Other Entities
- IFRS 13 — Fair Value Measurement
- IFRS 15 — Revenue from Contracts with Customers
- IFRS 16 — Leases
- IFRS 17 — Insurance Contracts
Related Subjects
Components
- IFRS for SMEsSimplified IFRS variant designed for small and medium-sized entities
Part Of
- Financial AccountingIFRS is a set of rules within financial accounting
Related
- International AccountingIFRS is the dominant framework in international accounting
- IAS — International Accounting StandardIAS standards (predecessor series) are part of the IFRS body of standards
Contrast
- GAAP — Generally Accepted Accounting PrinciplesUS domestic framework vs. the global IFRS framework
Governed By
- IASB — International Accounting Standards BoardThe IASB issues and maintains IFRS standards
- IFRS Foundation — IFRS FoundationThe IFRS Foundation oversees the IASB and funds standard-setting
See Also
- IFRS and US GAAP are the sameCommon misconception article comparing IFRS and US GAAP
Articles (1)
External Links
- International Financial Reporting Standards — Wikipedia