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Session 7: Fundamentals of International Financial Reporting - Coggle…
Session 7: Fundamentals of International Financial Reporting
International Financial Reporting Standards
Vision:
Developing a single set of high quality global accounting standards that provide investors, lender and others relevant, transparent and comparable information in general-purpose financial statements.
Transparency - by enhancing international comparability and quality of financial statements to make informed economic decisions.
Accountability - by reducing information gap between providers of capital and people to whom they have entrusted their money.
Efficiency - by helping investors identify opportunities and risks, improving capital allocation.
What are the standards?
Globally recognised set of standards for the prep of financial statements by business entities.
Details...
Items that should be recognised as assets, liabilities, income and expense.
How to measure those items.
How to present those items in a set of financial statements.
Related disclosures about those items.
Developed by the IASB (the Board).
Independent standard-setting board.
Has 14 full-time members from 11 countries.
Has 150 staff from 30 countries.
Supported by the IFRS Advisory Council, an Accounting Standards Advisory Form (ASAF) of national standard-setters and an IFRS Interpretations Committee to offer guidance.
Follows transparent and open due process.
Engages with investors, business lenders, regulators and global accountancy profession at every stage,
Collabs with worldwide standard-setting community.
Use of a set of high quality standards by companies throughout the world improves comparability and transparency of financial information and reduces financial prep costs for multinational companies that have firms across different countries.
When standards are applied rigorously and consistently, capital market participants get higher quality info and can make better decisions.