• International Accounting Standards Board (IASB).

- International Financial Reporting Standards (IFRS).

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 Introduction
 International Accounting Standards (IAS).
 an older set of standards.
 Standards early April 1, 2001.
 Shows how business events, transaction reflects on financial
statements.
 In the past, international accounting standards were issued by
the Board of the International Accounting Standards
Committee (IASC)

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The Purpose of International
Standards in Accounting
• To develop global financial reporting framework
that ensures effective regulation of financial
markets.
• Interconnection among countries ,increases cross-
border capital flows that forces to have an
international set of instruction.
• IAS establish in 1950 ,focused on harmonization, or
reducing differences among the accounting
principles used in major capital markets throughout
the world.

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About International Accounting
Standards committee (IASC)
• International Accounting Standards committee
(IASC)

• Was Responsible for setting IAS.

• formed in 1973, was the original organization

setting international standards.

• reorganized in 2001 and became an

independent international standard setter
called the IASB.

• European Union and over 100 other countries

permit the rules set by IASB. 4
International Accounting Standards
Board (IASB)

• It is the modern Accounting standards

setting board worldwide.

• Responsible body of setting IFRS-

International Financial Reporting Standards.

• Mission is to bring transparency,

accountability and efficiency in financial
markets worldwide.

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IFRS-International Financial
Reporting Standards
• a set of accounting standards developed by the
International Accounting Standards Board.

• guidance on how to prepare company’s

financial statements.

• These standards offer companies in more than

100 countries, including Canada and the
European Union.

• A set of global standards for the preparation of

public company financial statements.
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Focused area of IFRS
• IFRS covers a wide range of accounting
activities.

• These are certain aspects of business

practice for which IFRS set mandatory rules.

I. Statement of Financial Position.

II. Statement of Comprehensive Income.

III. Statement of Changes in Equity.

IV. Statement of Cash Flow.

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