What is an IFRS and how does it affect accounting in Australia?
“IFRSs” is the collective term used to describe the authoritative pronouncements issued by the IASB. Technically, IFRSs comprise: 1. two series of standards: those explicitly called International Financial Reporting Standards and the older series of International Accounting Standards, and 2. two series of Interpretations: those issued by the former Standing Interpretations Committee (SIC) and those issued by the existing International Financial Reporting Interpretations Committee (IFRIC) of the IASB. Under a broad strategic direction from the FRC, the AASB has adopted IFRSs for application by entities reporting under the Corporations Act 2001 for annual reporting periods beginning on or after 1 January 2005. This is to ensure that general purpose financial statements, prepared by for-profit entities in accordance with AASB standards, will also be in accordance with IFRSs. The AASB has a transaction neutrality policy, which means similar transactions and events should be accounted for i
