Question

what are the objective and scope of IFRS 1, IFRS 2, IFRS 3, IFRS 4, IFRS 5, IFRS 6, IFRS 7, IFRS 8, IFRS 9, IFRS 10, IFRS 11, IFRS 12, IFRS 13, IFRS 14, IFRS 15 and IFRS 16

Answer 1

The sole authority to set IFRS is vested with IASB, this standard is intended to apply in profit oriented entities with the aim of providing more information performance, position and cash flow that is useful to various users in making financial decisions

IFRS 1 First-time Adoption of International Financial Reporting Standards

An entity moving from national GAAP to IFRS should adhere to the requirements of IFRS. IFRS 1 deals with requirements in adopting IFRS at first time. The entities which adopt IFRS must prepare financial statements according to IFRS for the current year as well as for the previous year. IFRS 1 specify the accounting policies that adopted by the company should follows throughout IFRS reporting period.   

IFRS 2 Share-based Payment

This standard is applicable to the entities having a share based payment transactions, including issues of share options. The details of how the transaction with employees or other parties are settled should be added in the reporting. The objective this standard is to reflects the effect of share based payment transactions in the financial positions of the company   

IFRS 3 Business Combinations

The standard provide the details of how recognised and measured the assets and liabilities of other parties in the financial statement, it also provides the recognition and measurement method of goodwill in the combination of business. Finally it also provide how such transactions effects the financial positions of the firm,

IFRS 4 Insurance Contracts

This standard is applied to report all insurance contact including reinsurance contract of the entity

IFRS 5 Non-current Assets Held for Sale and Discontinued Operations

This standard ensure the recovery rate of noncurrent assets instead of their continues pricing and also present the comprehensive income statement of the results of discontinued operation

IFRS 6 Exploration for and Evaluation of Mineral Resources

Along with the details of exploration and extraction cost of mineral resources, this standard specifically determine the of the technical feasibility and commercial viability of extracting the mineral resources

IFRS 7 Financial Instruments: Disclosures

This standard ensures the users to evaluate the nature and extend of risk arising from financial instruments which the entity exposed during the reporting period. The details of qualitative and quantitative risk managing techniques of the entity would give more inference about the efficiency of the firm

IFRS 8 Operating Segments

This standard requires the segment wise; products and services, geographical areas and major customers, details of the business activities. It helps the users to evaluate the operation of the business and their effects in the financial position of the firm.   

IFRS 9 Financial Instruments

IFRS 9 specifies the methods to categories and measures the financial assets, financial liabilities, and some contracts to buy or sell non-financial items. This standard is applicable when the entity recognize a financial asset or a financial liability in its financial statement Financial assets classified into three categories based on the model of business; (i) Amortised cost – if the objective to collect contractual cash flows (ii) Fair value through other comprehensive income- if the objective is both collecting contractual cash flows and selling financial assets.(iii) Fair value through profit or loss- if the model note fall above categories.

IFRS 10 Consolidated Financial Statements

This standard specifies the method for presenting and preparing consolidated financial statements when an entity controls one or more other entities. Consolidate financial statements provides pattern of control of parent company over subsidiaries. It provide a comprehensive view of assets, liabilities, equity, income, expenses and cash flows of a parent and its subsidiaries companies as a single entity

IFRS 11 Joint Arrangements

If two or more company have joint agreement on the control on an arrangements in particular operation or activities, such cases company should report the financial statements in adhere to IFRS 11.

IFRS 12 Disclosure of Interests in Other Entities

The financial statement must report the interest of company in other entities in terms of nature risk associated with such interest. It also depicts the impact of such interest in the financial position, financial performance and cash flow

IFRS 13 Fair Value Measurement

This standard specify a common framework to measure faire value and how to measure fair value, but it does not stipulate when fair value can or should be used. Fair value means the price at which the asset would be sold or transfers of liability in orderly market process. This standard is applicable when another standard require the fair value measurements or disclosure about the fair value of assets

IFRS 14 Regulatory Deferral Accounts

This standard deals how to record the transaction of goods and services having regulated prices particularly public utility services.    

IFRS 15 Revenue from Contracts with Customers

This standard specifies the reorganization of the exchange revenue on the transfer of promised goods or services to the customers. It is necessary to establish the details such nature, timing, amount and uncertainty in the cash flow of such transaction while reporting the financial statement

IFRS 16 Leases

IFRS 16 deals the reporting accounting of lease of the assets with the term over 12 months. This standard requires faithful information on the amount, timing and uncertainty in the cash flow from the lease.