List of International Financial Reporting Standards


The only thing that kept people’s hope afloat in the pandemic was the growing ‘stock market’. Despite the various forecasts, the market did not go down as anticipated. Many people invested and realized good profit. One primary reason, why more people are interested in the stock market is because it has become very user-friendly, thanks to the internet and mobile devices, we can keep a track of the market on the go.  Every company releases a financial statement based on certain accounting principles, standards, and financial policies. GAAP (Generally accepted accounting principles) is a combination of accounting standards that are set by policy boards, and the commonly accepted rules of recording and reporting accounting information. Internationally this is known as IFRS( International Financial Reporting Standard), which lays down certain rules and processes to standardization which is accepted across countries. One can pursue this course through various organizations.

International Financial Reporting Standards comprises of IFRS rules issued by IASB (International Accounting Standard Board). They are principle-based standards. They establish broad rules. Each country sets its own rule and regulations for accounting and financial reporting. When an enterprise decides to raise capital other from its own country, another country’s accounting and financial rules will also apply. To maintain uniformity across and reduce companies’ hassles, International Financial Reporting Standard was introduced.

The steps to list International Financial Reporting Standards are as follows-

The first-time adoption of IFRS

This step sets out the list of procedures that need to be followed when a company wants to adopt the process of IFRS for the first time. It awards restricted exceptions from the overall necessity to agree with each IFRS based on the structure and requirement of the company.

Share-based payment

This needs the company to understand the nature of all financial transactions. The transactions can be in the form of- share appreciations, share market options, shares granted, transactions with employees, or payments that are made in cash. The assets owned by the company; the liabilities are considered when applying the second step.

Business Combinations

This third step helps the companies when mergers and acquisitions take place. During mergers and acquisitions accountants must evaluate the company as a whole entity, which includes its depts, assets, outstanding everything. This step helps both the companies to be evaluated on the same grounds and the value is taken on the date of the sale

Insurance contracts-

This is now superseded by IFRS 17. It still applies to certain aspects of financial reporting that have issued some insurance contracts and have not applied for IFRS 17.  An insurance contract is where one party (the insurer) accepts insurance risk from another party (the policyholder), if any disastrous financial event (the insured event), adversely affects the policyholder. Insurance contacts apply to all contracts including reinsurance contracts.

Non-current assets held for sale and discontinued operations

This rule helps to outline the non-current assets held for sale or distribution among owners. Assets held for sale for not undervalued. They are valued at fair costs to sell and are presented separately in the financial statement.

Exploration for and Evaluation of mineral resources

This considers the expenditures incurred while exploration and evaluation of mineral processes and the costs involved in identifying the viability of natural resources like oil, natural gas, precious stones, etc.

Financial Instrument: Disclosures

Any entity applying IFRS must disclose all kind of financial risks that the entity has taken, the nature and extent of those risks and how does one manage those kinds of risks. This includes qualitative and quantitative risks.

Operating Segments

IFRS 8 requires a company whose debt or equity securities are publicly traded to issue financial statements which enable the users to understand and estimate the nature and financial risks of the different activities in which the company engages.

Financial Instruments

In this step, IFRS lays down rules to identify how an entity should measure and classify financial assets, financial liabilities, and contracts to buy and sell non-financial items.

Consolidated Financial Instruments

When a company owns one or more subsidiaries then consolidated financial instruments establish principles that help in consolidation. It defines the principle of control, how to apply that principle, and sets out the accounting requirements.

Joint Arrangements

It outlines the accounting by companies that jointly control an arrangement.  Joint control involves the sharing of arrangements and control of a joint venture or joint operation. A joint operation is when both parties have control over the operation, they own the assets and liabilities. In a joint venture, both parties have control over the arrangements and own the net assets of the arrangement.

Disclosure of interest in other entities

IFRS 12 requires an entity to disclose all information that enables its financial statement users to understand the nature of risks associated with- its subsidiary, joint arrangements, an associate, or some unstructured entity. Plus, the effect these investments can have on the company’s cash flows, financial position, and financial performance.

Fair Value Measurement

It sets out a single definition of fair value and requires companies to declare financial statements using this technique. Fair value measurement aims at maximizing the use of observable relevant inputs and minimizing the use of unobservable inputs.

Regulatory Deferral Accounts

Rate regulation is the primary aim of IFRS 14. Rate regulation is a legal framework within which the prices are established that a public entity or a similar entity can charge for its goods and services. Rate regulation helps in the creation of Regulatory Deferral Accounts.

Revenue from contracts from customers-

The goods and services sold to a customer at the transaction price are recognized as revenue. It reports information about the nature, amount, and uncertainty of revenue and cash flows from contact with the customer.


The objective is to report information that represents lease transactions and provides fundamentals to users of financial statements to assess the amount, time, cash uncertainties arising from the lease. A lessee should recognize assets and liabilities.

Processes to adopt IFRS

There are two processes by which a country can become IFRS compliant- the adoption process or convergence process. In the Adoption process, the country sets out a timeline within which entities must issue the rules for IFRS as set by the IASB. In Convergence, the country will set high standards and issue regulations that are very similar to international standards like IFRS. Indian Accounting Standards (IAS) are very similar to IFRS but with few changes to suit the Indian Environment.

Convergence to IFRS will have the following benefits

Improves investor confidence as the process is more transparent and comparable

1.There is a lower risk of error

2.Borderless flow of money

3.Listing of companies globally

4.Comparability of financial statements

The carve ins and carve-outs of Indian Accounting Standards (IAS)

IAS differs slightly from International Financial Reporting Standards to suit the Indian Environment. The Government of India under consultation with ICAI decided to make the country IFRS compliant by the convergence process. While formulating the IAS rules efforts have been made to keep these standards as much as possible in line with IFRS.

  • Terminology changes so that it is in line with the terms as used under Indian law, like ‘statement of profit and loss, in place of ‘statement of comprehensible income’, ‘balance sheet’, in place of ‘financial statement’.
  • Some options have been removed to main consistency and comparability
  • Certain changes have been made keeping in mind the Indian environment which differs from as assumed in IFRS.

Additional guidance given over IFRS are known as ‘carve-ins’, options that have been slightly changed are known as ‘carve-outs’.

Indian Accounting Standards

1.IAS1- Presentation of Financial Statements

This states how the financial statement should be presented. It mentions rules for correlation, structured, minimum requirements on their content

2. IAS2- Inventories

It mentions the requirement of how to account for all inventories. The standard way of measuring inventory is to measure at the lower cost and NRV (Net realizable value). It also outlines the rules for determining cost, FIFO (First in, first out), weighted average cost, and specification identification in some cases.

3.IAS7- Statement of cash flows

This requires an entity to represent its cash flows as an integral part of the primary cash flow statement. The cash flow statement is presented as direct and indirect activity, investing, or financial activities which are presented on a gross basis.

4.IAS8-Accounting Policies, Changes in Accounting Estimates, and Errors

This rule is applicable in selected accounting policies. Accounting changes and reflecting corrections of prior period errors.  The standard requires compliance with applicable IFRS to a transaction, condition, or event.

5.IAS10- Events after Reporting Period

It states the requirements when events should be adjusted in the financial statements and the disclosures the entity should give when the financial statement was issued after the reporting period

6.IAS12- Income taxes

It mentions how accounting treats income taxes. Income taxes are based on all income from domestic and foreign taxes that are based on taxable profits. Taxes unpaid are considered a liability. Overpaid current taxes are considered an asset. Deferred tax liability is when an entity has unused tax losses and unused tax credits.

7.IAS16- Property, Plant, and Equipment

It gives an outline of the financial treatment of property, plant, and equipment.  These three entities are first measured on cost, then on revaluation, and finally on depreciation.

8.IAS19-Employee Benefits-

It states the rules about accounting requirements for employee benefits, including short-term benefits, post-employment benefits, and termination benefits.  It establishes the principle the cost of providing employee benefits should be calculated at the time the employee earns the benefit rather than when is paid or payable.

9.IAS20- Accounting for Government Grants and Disclosure of Government Assistance

Government grants are transfers of resources to an entity by the Government for past or future compliance with certain conditions relating to operating activities. Government grants are recognized in both profit and loss on a systematic basis over the period in which the entity recognizes the cost for which the grant has been provided.

10.IAS21- The Effect of Changes in Foreign Exchange Rates

A company can have foreign activities in two ways- it can either deal in foreign currencies or it can deal in foreign operations. IAS21 states how a company should account for foreign currency transactions. Translate the foreign currency dealings into the company’s functional currency and translate the financial statement into the presentation currency

11.IAS23- Borrowing Costs

Borrowing costs are directly attributable to the acquisition, construction, or production of a ‘qualifying asset’. Other borrowing assets are treated as costs.

12.IAS24- Related to Party Disclosures

Requires disclosures about transaction-related to outstanding balances with an entity’s related parties. It defines the various kinds of entities, parties, and their relationship that disclosures are required in respect to those parties.

13.IAS27- Separate Financial Statements

When an entity is required by regulators to present separate financial statements; IAS 27 prescribes the accounting and disclosure requirements for subsidiaries, joint ventures, and associates.  Separate Financial Statements are provided in addition to consolidated financial statements.

14.IAS28- Investment in Associates and Joint Ventures

According to this rule the IAS wants the investor to account for its investments in Joint Ventures using the equity method with few exceptions. This rule states how to apply the equity method when accounting for investments in associates and Joint Ventures.

15. IAS29- Financial Reporting in Hyperinflationary Economies

When the functionary currency of an entity is that of a hyperinflationary economy then IAS29 states the rules to be followed while accounting. The standard cannot prescribe when hyperinflation arises but states the rules when dealing with hyperinflationary financial currency.

16.IAS32- Financial Instruments presentations

IAS 32 presents financial statements as assets, liabilities, and equity assets. Many exceptions apply. The differentiation between financial liability and equity is based on whether the entity is going to transact in cash or some other financial asset.

17.IAS33- Earnings per share

Earnings per share calculates both basic earnings per share, (EPS) and diluted earnings per share. The basic EPS is calculated based on the weighted average number of outstanding shares. The diluted EPS also includes dilutive potential ordinary shares as options and convertible instruments if they meet the criteria.

18.IAS34- Interim Financial Reporting

It is a condensed form of financial report for a period shorter than a financial year. The standard outlines the measurement, disclosure requirements, and recognition for interim financial reports.

19.IAS36- Impairment of assets

The main aim of this standard is to make sure that an asset is not valued more than its recoverable cost through use or sale. If the carrying amount exceeds the recoverable amount, then the assets are described as impaired. IAS 36 applies to all assets other than those covered in standard address impairment. The exceptions include inventories, deferred tax assets, assets arising from employee benefits, and other financial, biological assets.

20. IAS37- Provisions, Contingent Liabilities, and Contingent assets

This standard defines and specifies the accounting standards for Provisions (liability of uncertain timing and amount), together with contingent assets (possible assets), and contingent liabilities (possible and present obligations that are not properly measurable).  Provisions are measured based on the best estimate of the expenditure required to settle the present obligation.

21. IAS38- Intangible assets

As the name suggests, this standard outlines financial accounting rules for intangible assets which are non-monetary. They are without physical substance and identifiable from contractual or legal rights. The intangible assets are initially measured at cost, subsequently measured at cost or using the revaluation model renumerated by systematic basis over their useful lives, (unless the assets have indefinite value then it is not amortized).

22. IAS40- Investment Property

Property consists of land and building (or a part of the building), that is held for earning rentals or capital appreciation. It may not be owner-occupied, not used for administration, for production or services, and not held for sale under the ordinary mode of business.  It may include investment property that is being redeveloped. It is measured at the initial cost.

23. IAS41- Agriculture

This standard includes all aspects of agriculture. Agriculture is the management of biological transformation of biological assets (living animals or plants), and the harvest of those assets for sale or the conversion into agricultural produce or additional asset. The accounting treatment is measured during their growth, degeneration, production, and procreation.

IFRS Course-

The following article only provides a small preview of International Financial Reporting Standards. One can pursue this course in-depth from many course providers. Few of them are-

Henry Harvin IFRS diploma course– This is certified by the IASB, they cover all aspects of accounting and provide internships.  For more information kindly refer- IFRS course

Finpro is an Indian Consulting firm, it provides GAAP (Generally Accepted Accounting Principles), solutions to companies. It manages IPO, financial reporting, and mergers and acquisitions. They have live weekend classes.

Zell Education gives practical and theoretical knowledge about IFRS. It provides a diploma in the same. The duration is three months and classes are conducted every weekend.

EY IFRS course prepares the students for the international exam that is conducted globally for professional accountants. It has presentations, seventy-five hours of training, EY live sessions, and access to its learning portal.

KPMG provides training on ACCA’s IFRS certification course. KPMG provides training in Bangalore and other locations also. The course helps accounting professionals gain a deep understanding of global accounting procedures.


IFRS is essential and helpful course for people in the financial industry. Finance interests everyone these days. Depreciation of money and increasing inflation has taught people to invest smartly and wisely. The Government has taken numerous steps in yearly budget to help the public of India to use for liquid money than actual cash. Thanks to demonetization, even the smallest of business have an account online.


Q.1 Who can pursue course in IFRS?

Students who have experience of two years in the relevant accounting and a graduate in the required discipline. Accountants, Finance managers, Company secretariats, MBA with Finance majors and accounting experience, certified CA and CS working in the accounting domain.

Q.2 Can a non-CA pursue IFRS course?

Yes, a non-CA (chartered accountant), can also pursue IFRS, but the person should have relevant exposure to accounting.

Q.3 What are the benefits of pursuing IFRS course?

It helps one understand the objective and framework of IFRS. It helps in preparing the group financial statements, subsidiaries, associates, and joint associates. Applying relevant key features of financial statements. 

Q.4 What is the scope of IFRS?

According to LinkedIn, IFRS-certified accounting professionals, working in top accounting firms, earn around 8 lacs to 15 lac per annum in our country.


  1. These are best list of International Financial Reporting Standards I have come across till now. I was looking for the best sites and I found this page. Thanks a ton for this insightful blog!


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