Question

state the objectives for each of the IFRS standards

Answer 1

International Financial Reporting Standard

International Financial Reporting Standards (IFRS) set common rules so that financial statements can be consistent, transparent, and comparable around the world. IFRS are issued by the International Accounting Standards Board (IASB). They specify how companies must maintain and report their accounts, defining types of transactions, and other events with financial impact. IFRS were established to create a common accounting language so that businesses and their financial statements can be consistent and reliable from company to company and country to country.
IFRS are designed to bring consistency to accounting language, practices and statements, and to help businesses and investors make educated financial analyses and decisions. The IFRS Foundation sets the standards to “bring transparency, accountability and efficiency to financial markets around the world… fostering trust, growth and long-term financial stability in the global economy.”
The main objective of IFRS Foundation are:
1. To develop, in the public interest, a single set of high quality, understandable, enforceable and globally accepted international financial reporting standards (IFRS Standards) based upon clearly articulated principles. These standards should require high quality, transparent and comparable information in financial statements and other financial reporting to help investors, other participants in the world's capital markets and other users of financial information make economic decisions.
2. To promote the use and rigorous application of those standards
3. In fulfilling the objectives associated with (1) and (2), to take account of, as appropriate, the needs of a range of sizes and types of entities in diverse economic settings
4. To promote and facilitate adoption of IFRS Standards, being the standards and interpretations issued by the Board, through the convergence of national accounting standards and IFRS Standards.

There are 17 IFRS Standards are there

1. IFRS 1- First-time Adoption of International Financial Reporting Standards : IFRS 1 requires an entity that is adopting IFRS Standards for the first time to prepare a complete set of financial statements covering its first IFRS reporting period and the preceding year.The entity uses the same accounting policies throughout all periods presented in its first IFRS financial statements.

2. IFRS 2- Share-based Payment: IFRS 2 specifies the financial reporting by an entity when it undertakes a share-based payment transaction, including issue of share options. It requires an entity to recognise share-based payment transactions in its financial statements, including transactions with employees or other parties to be settled in cash, other assets or equity instruments of the entity.
3. IFRS 3- Business Combinations : The objective of IFRS 3 Business Combinations is to improve the relevance, reliability and comparability of the information that a reporting entity provides in its financial statements about a business combination and its effects.
4. IFRS 4- Insurance Contracts: The objective of this IFRS is to deal with the financial reporting for insurance contracts by an entity that issues insurance contracts. IFRS 4 specifies some aspects of the financial reporting for insurance contracts by any entity that issues such contracts and has not yet applied IFRS 17
5. IFRS 5- Non-current Assets Held for Sale and Discontinue Operations: IFRS 5 focuses on two main areas:

It specifies the accounting treatment for assets (or disposal groups) held for sale, and

It sets the presentation and disclosure requirements for discontinued operations.
6. IFRS 6- Exploration and Evaluation of Mineral Resources : The objective of this IFRS is to deal with the financial reporting requirements for entities in the mineral extractive industry. Exploration for and evaluation of mineral resources is the search for mineral resources (e.g. oil, natural gas and similar non-regenerative resources) after the entity has obtained legal rights to explore in a specific area.
7. IFRS 7- Financial Instruments: Disclosures

The objective of IFRS 7 is to deal with the disclosures required in an entity’s financial statements in connection with financial instruments. Before the issuance of this IFRS, the disclosure requirements were contained within IAS 32. IAS 32 now contains just the presentation requirements of financial instruments. This IFRS applies to all entities, including entities that have few financial instruments (e.g. simply receivables and payables).
8. IFRS 8- Operating Segments: This standard sets out requirements for the disclosures of information about an entity’s operating segments, products, services, the geographical areas in which it operates, and regarding its major customers to enable users of financial statements to analyze the nature and financial effects of its business activities.
9. IFRS 9- Financial Instruments: The objective of IFRS 9 is to establish principles for the financial reporting of financial assets and financial liabilities that will present relevant and useful information to users of financial statements for their assessment of the amounts, timing and uncertainty of the entity's future cash flows.
10. IFRS 10-Consolidated Financial Statements : The objective of IFRS 10 as set out in the standard is to establish principles for the presentation and preparation of consolidated financial statements when an entity controls one or more other entities.
11. IFRS 11- Joint Arrangements: This standard defines joint control, along with the guidelines for the identification of type of joint arrangement in which entity is involved. It also prescribes the accounting principles which are applicable when an entity has interest in jointly controlled arrangements. This standard classifies the joint arrangements on the basis of rights and obligations.
12. IFRS 12 - Disclosure of Interests in Other Entities: The objective of IFRS 12 is to require disclosure of information that will enable users of financial statements to evaluate: (a) the nature of, and risks associated with, its interests in other entities; and (b) the effects of those interests on its financial position, performance and cash flows.
13. IFRS 13- Fair Value Measurement: IFRS 13 Fair Value Measurement applies to IFRSs that require or permit fair value measurements or disclosures and provides a single IFRS framework for measuring fair value and requires disclosures about fair value measurement. The objective of this standard is (a) defines fair value (b) sets out in a single IFRS a framework for measuring fair value (b) requires disclosures about fair value measurements.
14. IFRS 14- Regulatory Deferral Accounts: The objective of IFRS 14 is to specify the financial reporting requirements for 'regulatory deferral account balances' that arise when an entity provides good or services to customers at a price or rate that is subject to rate regulation.
15. IFRS 15- Revenue from Contracts with Customers: The objective of IFRS 15 is to establish the principles that an entity shall apply to report useful information to users of financial statements about the nature, amount, timing, and uncertainty of revenue and cash flows arising from a contract with a customer.
16. IFRS 16- Leases: IFRS 16 establishes principles for the recognition, measurement, presentation and disclosure of leases, with the objective of ensuring that lessees and lessors provide relevant information that faithfully represents those transactions.
17. IFRS 17- Insurance Contracts: The objective of IFRS 17 is to ensure that an entity provides relevant information that faithfully represents those contracts. This information gives a basis for users of financial statements to assess the effect that insurance contracts have on the entity's financial position, financial performance and cash flows. IFRS 17 was issued in May 2017 and applies to annual reporting periods beginning on or after 1 January 2023.