Implementation of International Financial Reporting Standard (IFRS) in Total S.A

Running head: ACCOUNTING
Accounting
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2ACCOUNTING
Table of Contents
Introduction:...............................................................................................................................3
Adoption of IFRS.......................................................................................................................3
Critical analysis:.........................................................................................................................3
Treatment of employee benefits:................................................................................................4
Closing period and net income recognition:..............................................................................6
Conclusion:................................................................................................................................7
Reference....................................................................................................................................8

3ACCOUNTING
Introduction:
This report contains details analysis of implementation of International Financial
Reporting Standard (IFRS), which were issued by the International accounting standards
board (IASB). In the year the 2014, the European Union decided to apply IFRS for the
preparation and presentation of the financial statement by December 31. TOTAL S.A is a
FRANCE based renowned oil and natural gas Sector Company, which has a great control
over the world market (Oulasvirta, 2014).
Adoption of IFRS
After the adoption of the IFRS by the EUROPIAN union, the company also adopted
the policy. The companies are adopting the IFRS because of high quality, internationally
recognised set of accounting standards. That brings transparency and accountability of all the
financial data this builds up efficiency of the financial statement. IFRS enhance the
transparency and the comparability of the financial statements with the other international
companies, as the financial statements are prepared based on the same principal. Further, the
IFRS attaches all the relevant data for the preparation of the financial statements, which
delivers a perfect view to the users about the efficiency, and the viability of the company.
Critical analysis:
Before the application of the IFRS, the FRANCE companies used to follow the
regulations that are issued by France accounting standards board. Recently the financial
reporting of the individual companies and consolidated group levels are affected by the
reformation of the FRENCH accounting standards and standard setting bodies (Christensen et
al. 2015). This dual reporting system enables the individual company to report by the use of