Section 1100: International Financial Reporting Standards (IFRS)
An Overview of International Financial Reporting Standards
1. International Accounting Standards (IASs) are required in Europe
--> for publicly traded companies, in European Union
--> Financial years, starting on or after 1 January 2005
2. European Economic Area (EEA)
EU Member States
Austria, Belgium, Bulgaria (2007), Cyprus, Czech Republic
Denmark, Estonia, Finland, France, Germany
Greece, Hungary, Ireland, Italy, Latvia
Lithuania, Luxembourg, Malta, Netherlands, Poland
Portugal, Romania (2007), Slovenia, Slovak Republic, Spain
Sweden, United Kingdom
European Free Trade Association (EFTA)
Iceland, Liechtenstein, Norway
Switzerland (Non-EEA)
3. International Accounting Standards Adopted Globally
Required in Europe: European Union (2005)
Convergence countries:
Australia (2005), Hong Kong (2005),
Canada (2011), Japan (2011), China (2007)
United States (2014)
4. Effective in March 2008
Foreign private issuers filing Form 20-F with SEC
--> IFRS-based financial statements are accepted.
--> reconciliation to U.S. GAAP is NOT required.
5. Commission Regulation (EC) No. 1606/2002 of the European Parliament and the Council
--> "on the application of international accounting standards," 19 July 2002
6. Article 4, Consolidated accounts of publicly traded companies
For each financial year starting on or after 1 January 2005,
Financial statements of public companies of EU member states
--> should be prepared in accordance with the International Accounting Standards
7. Adoption of IASs
Commission Regulation (EC) No. 1725/2003, 19 September 2003
--> Adoption of certain International Accounting Standards
--> In accordance with Regulation (EC) No. 1606/2002
8. European Union
1949: Council of Europe
1951: ECSC, European Coal and Steel Community
1957: EEC, European Economic Community
1957: Euratom, European Atomic Energy Community
1967: EC, European Communities
1973: UK joined EC
1979: ECU, European Currency Unit
1993: EU, European Union
1999: Euro as a currency
2002: Notes and coins of Euro
9. International Accounting Standards Board
IASC, International Accounting Standards Committee, was founded in 1973
IASC issued 41 IASs
IASB, International Accounting Standards Board, succeeded IASC in 2001
IASB revises IASs and issues IFRSs
http://www.iasb.org
10. IASs and IFRSs
41 IASs (International Accounting Standards) issued, 29 current
9 IFRSs (International Financial Reporting Standards) issued, 9 current
11. Interpretations
32 SIC (Standing Interpretations Committee) Interpretations issued, 11 current
19 IFRIC (International Financial Reporting Interpretations Committee) Interpretations issued, 15 current
12. International Accounting Standards (IAS)
41 IASs Issued (1975 – 2001), 29 IASs Current
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Index of IFRS Financial Reporting Textbook
