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IFRS - Coggle Diagram
IFRS
The IFRS Framework
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Sets out the concepts that underlie the preparation and presentation of financial statements as outlined in the Framework for the Preparation and Presentation of Financial Statements
Conceptual framework itself is not a standard, its purpose is to help the IASB to develop new or revised accounting standards to assist in the application of the accounting standards and to deal with any issues that the standards do not cover
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Advantages
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Multinational companies with subsidiaries in foreign companies have a common, company wide accounting language
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Disadvantages
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Principles based standards which require the application of judgement - many do not favour this approach
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UK GAAP
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CA2006 governs the principal reporting legislation in the UK, it dictates minimum reporting requirements for companies and incorporates the requirements of European law
US GAAP
A set of accounting standards to help prepare and present financial reports for a range of entities, including public and private enterprises
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European Commission
Worked extensively to promote the quality, comparability and transparency of the financial reporting of companies through the adoption of IFRS
The International Accounting Standards Board (IASB) has developed IFRS with the objective of achieving comparable financial reporting across borders
The global adoption of IFRS will result in the achievement of comparable financial information about organisations in different countries, overcoming factors like environmental and cultural differences