Comparative Study of IFRS and IAS Standards in Financial Reporting

This report provides a comprehensive comparison between International Financial Reporting Standards (IFRS) and International Accounting Standards (IAS). It begins by outlining the key differences between the two sets of standards, including their governing bodies and the evolution from IAS to IFRS. The report then delves into the benefits of IFRS, such as improved financial statement comparability and enhanced opportunities for international business. The report also addresses the varying degrees of compliance with IFRS across different countries, highlighting conflicts between IFRS and local accounting standards, such as those in India and Egypt. The report concludes with a list of references that support the analysis of the IFRS and IAS standards, providing a detailed overview of the subject matter.

Financial

Table of Contents
TASK...............................................................................................................................................3
1. Difference between IAS and IFRS..........................................................................................3
2. Benefits of IFRS:.....................................................................................................................3
3. Varying degrees of compliance with IFRS:.............................................................................3
REFERENCES................................................................................................................................5

TASK
1. Difference between IAS and IFRS
IAS (International Accounting Standards) IFRS ( International Financial Reporting
Standards)
IAS standards were issued during year 1973 to
year 2001 (Liu and et.el., 2014).
While IFRS were issued after 2001 onwards.
International Accounting Standards Committee
is governing body of IAS standards.
While International Accounting Standards
Board is independent, body which issue IFRS.
Most of the IAS standards are replaced by
IFRS.
In case of contradictions IFRS hold priority.
2. Benefits of IFRS:
 Financial statements and annual reports framed applying IFRS standards provide
assistance to different stakeholders and investors in efficient understanding of investing
opportunities and to take crucial decisions as opposing to fiscal reports and balance sheet
framed using numerous local or national standards of accounting (Christensen, 2012).
 IFRS are advantageous for economy as they lead to increase in growth of global
businesses and international companies operating in various countries.
 By encouraging the international investors to invest, it leads to more foreign capital flows
to the country.
 It contribute in generation of new opportunities for accounting and finance professionals
throughout the world as these same IFRS based practices exist across the world.
3. Varying degrees of compliance with IFRS:
Main aim of replacement of IAS standards and issuance of IFRS is to bring uniformity in
corporate financial statement and other related reports. But some countries like India, Egypt, UK
etc. have their own accounting standards which creates contradiction in compliance of IFRS. For
instance in India companies are required to follow IndAS and for Egyptian companies
compliance of Egyptian Accounting Standards are required, which sometimes create conflicts
with methods, procedures and guidelines prescribed in IFRS. This kind of conflicts is main

reason for variation in compliance with IFRS for companies operating business across the
different nations (Fox and et.al. 2013).

REFERENCES
Books and Journals:
Liu, C. and et.el., 2014. Differences in earnings management between firms using US GAAP
and IAS/IFRS. Review of Accounting and Finance, 13(2), pp.134-155.
Christensen, H.B., 2012. Why do firms rarely adopt IFRS voluntarily? Academics find
significant benefits and the costs appear to be low. Review of Accounting Studies, 17(3),
pp.518-525.
Fox, A. and et.al. 2013. The costs and benefits of IFRS implementation in the UK and
Italy. Journal of Applied Accounting Research, 14(1), pp.86-101.