Ifrs presentation for history and finance

Ifrs

1. History of IFRS Khan Dun

2. History of IFRS . Introduction International Financial Reporting Standards (IFRS) are a set of consistent accounting rules and procedures developed by the IASB. The history of IFRS began in 1973, when the International Accounting Standards Committee was created to develop uniform principles for financial reporting.

3. Prerequisites for the creation of IFRS The need to develop uniform financial reporting standards arose in connection with the active development of international trade and investment. Differences in national accounting systems made it difficult to compare financial information of companies from different countries, which negatively affected economic decision-making. The internationalization of business and the globalization of financial markets in the 20th century led to an awareness of the importance of harmonizing accounting standards. This contributed to the creation of the IASB, which began developing international financial reporting standards.

4. Basic principles of IFRS 1 Transparency IFRS requires full disclosure to ensure transparency in financial reporting and help users make economic decisions. 2 Comparability IFRS standards promote comparability of financial information across companies and countries, facilitating analysis and investment decisions. 3 Relevance IFRS aims to provide financial information that is relevant and useful to stakeholders in making decisions. 4 Credibility IFRS standards require that financial statements be fair, reliable and free from material errors or misstatements.

5. Process of development and adoption of IFRS 1 Formation of the draft standard The IASB determines the need for a new standard or an improvement to an existing one. They convene expert groups to develop a draft standard. 2 Public discussions The draft standard is published for public consultation to gather feedback and suggestions from stakeholders around the world. 3 Adoption of the standard The IASB analyzes all feedback received, makes any necessary changes, and adopts the final standard. The standard is approved by a majority vote of IASB members.

6. IFRS structure and governance bodies IFRS Board The highest governing body responsible for developing and issuing IFRS standards. It includes experts from different countries with knowledge in the field of accounting and financial reporting. Advisory Board This body provides advice and guidance to the IASB on matters of strategy and technical development of standards. IFRS Interpretation Group Responsible for clarifying and developing interpretations of existing standards, helping to ensure consistency in the practical application of IFRS. Compliance Committee This committee ensures that IFRS is applied consistently throughout the world by reviewing financial statements for compliance with the standards.

7. Implementation of IFRS in various countries IFRS were developed as uniform international financial reporting standards, which are gradually being implemented in many countries around the world. This process has its own characteristics and effects depending on national accounting traditions and financial culture. Today, more than 120 countries either directly apply IFRS or closely integrate them into their national standards. The leaders in this are the countries of the European Union, China, Australia, Russia and other large economies.

8. Advantages of using IFRS Increased transparency IFRS requires detailed disclosure, which increases the transparency of financial reporting and helps investors make informed decisions. Increased investor confidence The use of IFRS increases the reliability and comparability of financial information, which strengthens investor confidence and facilitates access to capital. Improved risk management IFRS's stringent risk assessment and disclosure requirements help companies better manage risk and ensure financial strength.

9. Criticism and limitations of IFRS Complexity IFRS standards are highly complex and technical, making them difficult to apply, especially for smaller companies. Expenses The implementation of IFRS requires significant financial and human resources, which is a barrier for many organizations, especially in developing countries. Adaptation The need to constantly update standards and adapt them to changing economic conditions forces companies to regularly review their accounting systems.

10. Prospects for the development of IFRS Experts see the following prospects for the further development of IFRS: Increasing adoption of IFRS around the world, especially in developing countries Convergence with other accounting standards such as US GAAP Continuous improvement and updating of existing IFRS standards Increasing transparency and comparability of financial reporting Increased participation of developing countries in the development and adoption of new IFRSs IFRS is also expected to play an increasing role in harmonizing the global financial reporting system and supporting international trade and investment.

11. Impact of IFRS on accounting and financial reporting Standardization IFRS creates a single set of rules and principles for accounting, which increases the comparability and transparency of the financial statements of organizations around the world. Transition to Fair Value IFRS requires that companies' assets and liabilities be measured at their fair values, making reporting more relevant and useful to investors. Professional Judgment IFRS requires accountants to use professional judgment in assessing and disclosing information, which improves the quality of reporting. Increased Transparency IFRS's extensive disclosure requirements make financial statements more transparent and informative for users.