Financial reporting standards are periodically issued by International Financial Reporting Standard Board. These standards are meant to ensure uniformity in financial reporting to protect the interests of the investors worldwide. Earlier called International Accounting Standards (IASs) issued up to year 2001. After the changes in governing bodies, standards issued after 2001 are referred to as International Financial Reporting Standards (IFRS). These standards are gaining acceptance in all the countries but yet there are many countries which haven’t yet adopted the standards in full or in parts. Currently there are nine financial reporting standards and forty one international accounting standards. Both are enlisted below:

IFRS No

Description (Name of IFRS)

1

First time adoption of international financial reporting standards

2

Share based payments

3

Business combinations

4

Insurance contracts

5

Non current assets held for sale and discontinued operations

6

Exploration and evaluation of mineral resources

7

Financial instruments and disclosures

8

Operating segments

9

Financial instruments

 

IAS No

Description (Name of IAS)

1

Presentation of financial statements

2

Inventories

3

Consolidated financial statements (suspended)

4

Depreciation accounting (introverted)

5

Information to be disclosed in financial statement (suspended)

6

Accounting responses to changing prices

7

Cash flow statements

8

Accounting policies, changes in accounting estimates and errors

9

Accounting for research and development activities

10

Events after the balance sheet date

11

Construction contracts

12

Income taxes

13

Presentation of current assets and current liabilities

14

Segment reporting

15

Information reflecting the changes in prices (withdrawn)

16

Property plant and equipment

17

Leases

18

Revenue recognition

19

Employee benefits

20

Government Grants accounting and disclosures

21

Effects of changes in foreign exchange

22

Business combinations

23

Borrowing costs

24

Related party disclosures

25

Accounting for investments

26

Retirement benefit plans – accounting and reporting

27

Consolidated financial statements

28

Investments in associates

29

Financial reporting in hyperinflationary economy

30

Financial statements of financial institutions – disclosures

31

Joint ventures

32

Financial instruments – presentation

33

Earnings per share

34

Interim financial reporting

35

Discontinued operations

36

Impairment of assets

37

Provisions, contingent assets and liabilities

38

Intangible assets

39

Financial instruments – recognition and measurement

40

Investment property

41

Agriculture

Above financial reporting standards are espoused by many countries to ensure transparency in financial reporting. But at the same these standards do not supersede the local legislations. Once adopted the local listed companies and large institutions are required to prepare financial statements in accordance with the principles of international financial reporting standards. The auditors specifically audit the financial statements to check the implementation of the standards and their adherence in letter and spirit.

The countries assuming and implementing the financial reporting standards attract investments to a great extent due to the confidence of investors in transparent financial reporting based on internationally accepted financial reporting standards. The financial information presented in a uniform format on the basis of internationally accepted principles becomes more understandable and reliable for the alien investors and they become capable of making decisions regarding their investments in far reaching countries and out of home ventures.