IFRS (International Financial Reporting Standards) or International Accounting Standards plays a very crucial role in the financial reporting as countries across the globe followed IFRS for the preparation and presentation of the financial statements.
Why Entities have to adopt IFRSs while preparing the financial statements?
As IFRSs are globally accepted Accounting standards ,the accounts prepared based on IFRS are more understandable and comparable. The adoption of IFRS standards will help the entities to simplify the accounting processes and improve efficiency.
Is it required to have an advice from an IFRS expert?
The increasing complexity of financial reporting and the rapid pace of change has led to a significant increase in demand for high-level accounting advice from an expert in the field. Our efficient and expert advisory team will help the businesses for the easy adoption and implementation of IFRS standards.
Impact analysis of adoption and implementation of new/revised IFRS standards.
IFRS impact assessment is an assessment conducted when new or revised accounting standard is implemented in any business from a specific date. Sometimes the value disclosed in the financial statements needs to be changed while comparing with those normally disclosed under existing practice, because of change in measurement of the item. In some cases, the impact will be only on information disclosed in the financial statement and may not necessarily impact the financial figures. In certain situations, items that were not accounted to date or had a different treatment earlier may change by adopting a new or revised one. In some other cases, the impact could be on both; the financial figures and the disclosure requirements.
Some of the relevant IFRSs, recently issued/revised or are in the process of release, where the impact of such standards on the financial statements may be material for the entities are given below :
IFRS 15 – Revenue from contract with customers
IFRS 16 – Leases
IFRS 9 – Financial instruments
IFRS 17- Insurance contracts