IFRS Summaries

Transition to International Financial Reporting Standards is a process unique to each entity.  Differences in accounting treatment between local and international reporting standards will arise on individual transactions and events of each entity. The process of transition involves:

  • identifying the differences affecting financial reporting by comparing local and international standards for each item reported in financial statements,

  • identifying items requiring disclosure where previously not disclosed

  • designing appropriate accounting policies and restating those items requiring a change in accounting policy

  • calculating a new opening balance sheet

  • making additional disclosures to allow users to understand how the transition has affected the reported financial performance and position of the entity

  • disclosing information regarding changes in estimates and accounting policies 

To complicate matters further, there are transitional provisions for certain transactions and events included in certain International Financial Reporting Standards and not in others. The provisions have to be combined with the requirements of IFRS 1 First-time Adoption of International Reporting Standards to decide what adjustments have to be applied retrospectively to the opening balance sheet, what adjustments may not be applied retrospectively due to lack of information and reliable estimates, and in certain cases, the adjustments that allow a choice in the matter with regards to the cost and practicability of producing the information versus the benefit of doing so.

Cost-effective, successful execution of transition to International Financial Reporting Standards requires in-depth knowledge of both the requirements of the local reporting regime and the requirements of the International Financial Reporting Standards. This section presents a series of simplified PowerPoint Presentations to serve as an introduction to International Financial Reporting Standards. By increasing the ease of processing a large volume of technical information, the intention of the presentations is to allow the reader to form a basic understanding of the key requirements of each standard before attempting to dive into the full original text. The original International Standards are available at the IASB website.

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# Article Title
1 IFRS 1 First Time Adoption of International Financial Reporting Standards
2 IFRS 2 Share Based Payments