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TERS
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TR.S. GIRISHA
[₁]. Kthat in IFRS? write the features of IFRS.
IFRS Stander for International Financial Reporting
Standendes. It is a set of rules followed
accountants to maintain books of accounts.
These rules are useful to internal & external users.
It includes principles based Let of Standards. The
rules are understandable, reliable & comparable.

These rules are issued by IASB (International

Accounting Standard Board].
Features of IFRS

1 It includes Single Set of accounting Standardl.

"1 It permits international flow of Capited,
GD It is beneficial to the regulaters.
It is so helpful to investers.
V It is good for accounting professionals.
Advantages of IFRS or Benefits of IFRS
C

1 It helps the investors.& market participants.

It shows transparency & uniformity
in accounting practices
 It helps in comparison.

)
--
V
It helps in good decision-making.
V
It powers accountability.
vì Il provides accounting Standarda &
accounting practice.
It provide common accounting language
for global Capital markets.
Vili
It helps the economy by growth of international
businem.
(ix) It encourages the foreign investers.
X
It provides more opportunities to the professionala.
Xi It provides base for preparation of financial
Statements
Xil It provides global set of accounting rules&
practica.
(XIII It helps in presenting uniform reporting.
Xiv It improves corporate governance.

Importance & Scope of IFRS

i
It helps in global Comparability by
Providing Set of accounting rules.
It improves the quality & transparency
of the financial Statement.
 -

;). It redures the monipulation

It is cueful to investon,
V It improves global investments.

Il- helps in more business combinations

It reduces the time & expences in
preparation of accounting Sedement.
ii). It is best in monitering & controling the
Subsidianes which are outside the country.
MX IFRS really expand the global Opportunitiy
X Foreign Direct Investment (FDF) is increasing
by IFRS.
Limitations or Disadvantages of Demerits

Challenges as Drawbacks of IFRS 'or' Probleme

1. Cost of following the IFRS; is more.
Small scale business units is facing with this
pablem.
IFRS cost
Adopting is an additional
to the business unit
(1) IFRS in a tione concerning proces ît

requires more time to adopt.

PV
IFRS really increases the Audit fees
√ In sometimes, comparison is difficult
vi
Some countrice practices their own accounting.
rude of Stendands So, it lacks global
acceptability 4

VII It increases the work load of accountants.

(
viii

IFRS Standes on Farvaline & not on

real cost. It in problematic one.

It dounot include allthe guidelines in

preparation of financial Statements.

[2]. List out Some important Indian Accounting

Standarda issued by ICAS & LASB
Ind.A.S.
Ind. AS 101 -> First time adoption of
Ind As 102 → Share Boyed payment.
Ind As 103 Business Combination.
Ind. AS 104 → Insurance Contracts.
Ind AS 108 S Operating Segment.
and. As 109 → Financial Instruments
Ind. As 110 → Consolidated Financial Statements.
Ind. AS 111 → Joint Arrangementi
Ind. As 116 → Leases.
Ind. AS 2 → Inventoriy.
Ind, "AS 12 Income Tax
And Ac. 19 Employee Benefin.
Ind. AS23 Borrowing costs.

Ind. AS 33 Earnings per Shoe [EPS]

Assets.
Înd. As 36 → Impairment of
Ind. As 38 - Intangible Assett.
Ind. AS 41 → Agriculture,
IFRS1 Name of IFRS
IFRS 2 →→→ Shone Based payments.
IFRS 5 - Businen Combinations.
IFRS 11 - Joint Arrangements.
FERS 16. Lease.
IFRS 17s Insurance contracts
[3] Objectives & Financial Statements )

1. To provide information about financial

In
position & cash flows.
ii. To provide information of Assets &
Licbration.

To provide information to the top management.

IV To provide estimates of profits..
V
To know the managerial ability.
V
To compare the performance of the bulinem.
(Wir To know the liquidity position or cash-position.

[4]. Qualitative Features of Financial Statements

☺. Financial Statements should be understable
It must be related to the needs of
11

users.
itia
11 (

It must be reliable. It meam,

free from mistakes & errors. >

JY
It mustbe comparable for different periods.
V It must fonclude completeness in all
respect
It must be free from bics or influences.
 Measurement Bacs of Financial Statements

☺).Histinical Cost (iv).Present Value.

(ii). Current Cost
(iii). Realisable Value,
[6]. Write Some Employee Benefit Expenses
Salaries & wages, Boney, Leave encathment,
Gratuity, Medical Expencer, Cantien expenses etc
[7]. write about Borrowing Cooks as per Ind. AS 23
Borrowing Cost includes effective interest,
finance charges of finance lease & exchange
differences of foreign (wnancy borrowings.
The objective of this standard is to
Show the accounting treatment for berrowing
Costi.
It includes the following asser! They are
Called Qualifying asser

(i). Inventenxs (ii). Monfacturing plantlequponent.

(ili). Power generation facilitin.
(iv) Intangible asset.
(W) Ships during Construction period.
 Asset Did paxluded as qualifying auch
(i). Biological ageti.
(11). Inventiones on a repetative basss.
Recognition of Borrowing Colts
Borrowing costs, includes acquisition,
construction on production of qualitying
asset & it is considered as cost & it

Should be capitalized.
Measurement of Borrowing costs
(1). Fundo borrowed specifically
Here, borrowing costs will be capitalized by
1

Capitalisation = Actual borrowing interyst

>
+ other related expenses - Any
investment income notyet used.
(ii). Funcks borrowed generally
Potre borrowing cost is capitalized with
the help of weighted average capitalization rate.
weighted averge Capitalisation rate is
calculated as follows
Total borrowing cast ‫لامي‬la
Total average outstanding
 Then

Armouwer & Qualifying annet x weighted Av.

capitalization sat
[8]]. Contingent Alcate &contingent
Assets

Kicblatics [Link] 37
Contingut Alser is a possible asset
that arise from past events & ured
confirmed by their occurance.
It doenot include
Income taxy, Leases, Employee benest
Insuere contracts ats to hich are specified
in different Ind. A standarch.
[9]. Share Based payment. Ind. A s. 102,
The Ind. AS States the about the
financial reporting of Shone based payments.
Shone Boyed Payments transactions includy
-

Equity Phones & warrants based

Payment transaction.
ii Cath-settled Shone based payment
trom action.
FIT Share based payment- tramactions with
Cath
alternative.
 Measenement & Shove bried payment (1)

17 Equity settled thae boned payment

Tramactions with employee.
il). Tramactions with Non employees.
B Cash settled based payment Fromaation

Under this, the liability is measured

at the four Value at grant date.
e
Choice & Seffementa
It includes Settlement either by cash
on issuing Shanes .
D may
include both cam &
Alsuef Shanes also.

DIO]. Interim Financial Reporting Ind. A.S. 34

This Standard Says about minimum content

of an interim financial report and the
principles for recognition and measurement
in financial Statements for a interion penited,
 (11)
Minimum Content or
Components of an Interion
Financial Repost"

A condensed Balance Sheet

A condensed &tatement of profit or lou,
(c

ili A condensed Statement of changes

in equity.
iv
A Statement of Cash flows.

‫دارد‬ Explanatory motres.

All these ou per Ind. A. Stendend

If the financial Statements are condensed,

they should include the following content.
ī Headings & Sub totecks in recent annual
reports,
$

Minimum explanatory notes.

Selected Line items on notes.
Basic & diluted EPS on the face of

Statement of pript & Locs.

 (12)

Recognition & Meadmnement of

Inkarim financial Report
€ 33

Accounting policie
1

Seasonal cyclical & occassional Revenue.

Costs incurred.

Income Tax expenses.

Il- must include materiality fecter.

Дівс
Disclosunds & I.F. Repool

Inventory
1
Impairment 101.
YN
Acquisition & disposal PPE
iU). Litigation Settlements.
Loan agreement.
changes in contingent assets &.Lablifin.
(vii), Changes in estimates.

Vili Avidend paid.

Accountry changing poltin.
 ‫ایشان‬
[11]. Ⓒbjective of IFRS or Need for IFKS
1. To develop a single set of high quality
generally accepted axccounting principles
To being transparency in accounting practice
To Strengthen accountability
(iv
To provide a common accounting language.
V
To help investers.
To help in practicing uniferm accounting.

Ind. As 12
. Income Taxes as per
[Link] 12 provides the treatment fer Încome-Toxx.
important points as per A812
Income Tax include all domestic & fereign
taxes.
(i
.

It dou not include accounting for

gove grants.
it It includes procedure for finding out
taxable probl
.

TOD. It shows defensed tax liabilities.

[13]. Kama Ltdly, how
has 1,cape colimary
Share Capital of Rs.10 each and the
Earnings for the period are Re. 10,00,000.
calculate Basic earnings per Share [EPS]
as per IND AS 33

Solution:
Ecomings Available to s/Holders
Basic Ecornings Per Shone =

No. of Equity shapes.

= 10,000,000
Re.1
10,00,000