IFRS has come to stay in our financial reporting cycle

      IFRS(International financial reporting standard) are standards that states how we prepare the financial statement of a Corporate entity.IFRS comprises of IFRS(International financial reporting standard) and IAS(International accounting standard).

  By financial statement,I mean ;

• Statement of profit or loss & other comprehensive income
• Statement of financial position formally known as balance sheet
• Statement of Cash flow
• Statement of Changes in Equity
• Notes to the accounts

     Every country has its own local GAAP(Generally accounting accepted prnciples) which in Nigeria context, is our SAS(Statement of accounting standard) used in preparing financial statement but with the emergence of IFRS,countries are expected to prepare their financial statement using IFRS.

      Nigeria has adopted IFRS which the main objectives is to make any financial statement prepared here in Nigeria comparable to any statement prepared in any country that has adopted IFRS(i.e Comparability porpose)

      IFRS has reduced the cost-effect of having to prepare two statements;where a statement is being prepared using our local GAAP and when required to present their statement in another country using IFRS,the company will be obliged to prepare same statement using IFRS(which implies that the company will pay the accountant based on the preparation of two accounts).

     IAS and IFRS has 41 & 16 standards respectively.The recent IFRS which is IFRS 16(LEASES) was issued last month 13th of January 2016.

 Later on this blog,I will be listing out the different IAS and IFRS  that shows the treatment of different transactions on our financial statement.IFRS is a common global accounting language.

P:S- As an accountant,you must be IFRS inclined because gone are the days of our local GAAP.Though,some of our local GAAP are still relevant for sectors that IFRS has not set up a standard for.

#THINK ACCOUNTING THINK IFRS