New ifrs

You're referring to the International Financial Reporting Standards (IFRS)!

IFRS is a set of accounting standards developed by the International Accounting Standards Board (IASB) to provide a common language for financial reporting across the globe. The standards aim to ensure that financial statements are presented in a consistent and transparent manner, making it easier for investors, analysts, and other stakeholders to compare and analyze the financial performance of companies.

Here are some key features and updates related to IFRS:

Key Features:

  1. Principles-based approach: IFRS is based on principles rather than rules, allowing for more flexibility and judgment in applying the standards.
  2. Global consistency: IFRS aims to provide a common language for financial reporting, reducing the complexity and confusion caused by different national accounting standards.
  3. Improved transparency: IFRS requires companies to provide more detailed and transparent financial information, making it easier for stakeholders to understand their financial performance and position.

Recent Updates:

  1. IFRS 16 Leases: Effective January 1, 2019, this standard requires companies to recognize leases on their balance sheet as assets and liabilities, rather than just reporting lease expenses on the income statement.
  2. IFRS 17 Insurance Contracts: Effective January 1, 2023, this standard sets out a new framework for insurance contracts, requiring companies to recognize insurance liabilities and assets on their balance sheet.
  3. IFRS 9 Financial Instruments: Effective January 1, 2018, this standard introduced a new approach to classifying and measuring financial instruments, such as loans and investments.
  4. IFRS 15 Revenue from Contracts with Customers: Effective January 1, 2018, this standard sets out a new framework for recognizing revenue from contracts with customers, replacing the previous industry-specific revenue recognition standards.

Benefits of IFRS:

  1. Improved comparability: IFRS provides a common language for financial reporting, making it easier to compare the financial performance of companies across different industries and regions.
  2. Increased transparency: IFRS requires companies to provide more detailed and transparent financial information, making it easier for stakeholders to understand their financial performance and position.
  3. Reduced complexity: IFRS simplifies financial reporting by providing a consistent framework for accounting and reporting, reducing the complexity and confusion caused by different national accounting standards.

Overall, IFRS aims to provide a more consistent and transparent framework for financial reporting, making it easier for stakeholders to understand and analyze the financial performance of companies.