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International Financial Reporting Standards and International Accounting Standards

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In countries that follow the IFRS, accountants are required to follow the reporting rules set out under this reporting framework. Although IFRS were initially introduced in an effort to bring accounting practices and processes into line, the value of coordination made this concept attractive worldwide. However, the success of the harmonization still remains to be a debatable topic. IFRS was previously called International Accounting Standards (IAS). The Board of International Accounting Standards Committee (IASC) issued IAS over the period 1973-2001. The new International Accounting Standards Board (IASB) acquired the responsibility for setting IAS from the IASC on 1st April 2001. During its first meeting, the IASB passed a resolution to adopt the existing IAS and Standing Interpretations Committee standards in addition to developing new International Financial Reporting Standards. This paper will review a set of scholarly articles to analyze the accounting definition and accounting treatments relating to IAS/IFRS, and it will also illustrate some real-life examples.
The IAS provides a number of accounting definitions related to key financial instruments, and they are really beneficial for the users to gain basic understanding of the various accounting practices. Such definitions and other recognition criteria are of great importance when it comes to the reporting of items in the financial statements. Common accounting definitions of key financial instruments are inevitable for a global audience to form a shared understanding of the firm’s financial position and accounting practices. Hence, these accounting definitions must be comprehensive enough to give the audience a clear idea of the accounting treatments required to report an item appropriately in the financial statement.
In order to have a deeper knowledge of the accounting definitions and their scope set out in the IAS/IFRS framework, it is&nbsp.good to consider and analyze IAS 39 as an example.