IFRS (International Financial Reporting Standard) is a new concept of accounting standard for financial reports and financial statements.¬† In SAP, we can provide reports in IFRS as well as in another standard, used by the company through parallel reporting format. In SAP, companies are using their own country specific standards. SAP also provides parallel reports and additional analysis. It is suggested that we have to start moving towards IFRS since it is getting mandated by several countries and major economies globally.
Nearly, all of the pharmaceuticals, retail, insurance, banking and many other industries already accepted IFRS. IFRS contains quality reports and cash flow statement to end users and the reports from IFRS are also cost effective. IFRS contains qualitative characteristics that determine the usefulness of information in financial statements. IFRS reports are being used in areas like Pharmaceuticals, Insurance, small sector industries, etc. IFRS also, includes Government Grants. IFRS contains accounting standards for reporting. In IFRS many principle are simplified.
Apart from conditions mentioned in the IFRS, the changes in accounting policies of prior period errors are accounted for retrospectively. This means that comparative information in financial statements is restated to replicate transactions in accordance with the new accounting policy as if that policy had always been applied, and that prior period errors are corrected in the same period.
IFRS grouped into following areas as:
- Introductory Standards
- Foundation Standards
- Property, Plant and Equipment Standards
- Special Case 1 Standards
- Special Case 2 Standards
- Remuneration Standards
- Listed Company Standards
- Disclosure Standards
- Banking Standards
- Industry Specific Standards
- Consolidation Standards
- Additional Publications from sources other than IASB (International Accounting Standard Board)
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By Manish Agarwal. (on behalf of SAP Consulting Team)
SAP :: Streamlined
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