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IFRS Reporting

IFRS Reporting

International Financial Reporting Standards (IFRS) is becoming the global language of business, with over 40% of the world has moved to IFRS in the past few years. IFRS is the globally accepted accounting standards and interpretations adopted by the IASB.

Package inclusions:
  • Training on Accounting Standards
  • Impairment testing
  • Purchase Price Allocation
  • Preparation of projected financial statements
  • Preparation of carve-out financial statements
  • Revenue Recognition Processes and Controls
  • Stock-based Compensation
  • Fair Value Accounting
  • Post-merger integration of financial reporting process
  • Preparing Accounting/Finance Manuals
  • Accounting Assistance
  • Documentation, evaluation, testing of Internal Financial Controls (IFC)
IFRS Reporting

IFRS Reporting Services

A vast number of companies adopt International Financial Reporting Standards (IFRS) based on accounting or parallel reporting. The reporting is made voluntarily, which is a result of regulatory requirements. The prominent benefits of IFRS include increased comparability as well as improved transparency of financial reporting.

The financial reporting field in India has seen significant changes in the last five years. With the trade moving beyond national boundaries, the compliance and reporting requirements also shift accordingly.

Presenting the financial statements of a company in accordance with the reporting requirements of every country is quite difficult practically. A company that operates internationally faces numerous challenges.

Enterslice has extensive experience in IFRS reporting for companies in varied economic sectors. These include banks, insurance companies, telecom companies, investment funds, oil and gas, real estate, and other multiple industries.

Our IFRS specialists can assist you in IFRS reporting by providing the appropriate resources, knowledge, and practical support in all areas.

International Financial Reporting Standards or IFRS

The International Financial Reporting Standards (IFRS) are the specified accounting guidelines developed by the International Accounting Standards Board (IASB). It mentions a common accounting language that can be used by the companies for the preparation of Balance Sheets and financial statements globally. With the increasing globalization and cross-border business relations, it is now mandatory to prepare financial accounts and balance sheets in a similar way. As of now, the IFRS Reporting is applicable in 120 countries.

  • Every country has its own specified set of accounting standards. IFRS reporting makes the process of comparing easy as it helps in understanding the accounts of companies across International boundaries with the help of a common accounting standard.
  • The IFRS principles open more doors for investing in public trading as the companies will be clear and transparent with regard to their global market information.
  • IFRS accounting needs extensive disclosure about the management of the company and internal financial transactions. In this way, the companies can be held accountable for any type of error or poor judgment.

Hence, the IFRS system ensures a high level of responsibility in the financial reporting and disclosure system.  

What is IASB?

The International Accounting Standards Board (IASB) is set up as an independent body in 2001. Its formation was done with the sole responsibility of establishing the International Financial Reporting Standards (IFRS). IASB succeeded in the International Accounting Standards Committee (IASC), which was responsible for establishing the international accounting standards, IASB is based on its office in London. It also provided the 'Conceptual Framework of Financial Reporting' issued in September 2010 that offers conceptual understanding and the basis of the accounting practices under the IFRS.

Components for IFRS Reporting

IFRS Reporting
  • Statement of Financial Position

The statement of financial position is also known as the Balance Sheet. IFRS influences the ways of reporting the components of a balance sheet.

  • Comprehensive Income Statement

This can be one complete statement, or it can also be separated into a Profit and Loss Statement and a Statement of other income that includes the property and equipment.

  • Statement of Changes in Equity

It is also referred to as a statement of retained earnings. This documents the company's change in the revenues or profit for the specified financial period.

  • Statement of Cash Flow

The company's financial transactions are summarized in this report for the given period. It separates cash flow into operations, investing, and financing. Along with these necessary reports, a company also needs to give a summary of its accounting policies. The complete report is usually checked with the previous report, to show the changes in the profit and loss account. A parent company for each of its subsidiary company must create a separate account reports.

List of International Financial Reporting Standards (IFRS)

The accounting standards issued by the IASB are called IFRS. Some of the standards set up by IFRS are mentioned below:

Standard No.

Title of Standard


First-time Adoption of International Financial Reporting Standards


Share-based Payment


Business Combinations


Insurance Contracts


Non-current Assets Held for Sale and Discontinue Operations


Exploration and Evaluation of Mineral Resources


Financial Instruments: Disclosures


Operating Segments


Financial Instruments


Consolidated Financial Statements


Joint Arrangements


Disclosure of Interests in Other Entities


Fair Value Measurement


Regulatory Deferral Accounts


Revenue from Contracts with Customers




Insurance Contracts


Presentation of Financial Statements




Statement of Cash Flows


Accounting Policies, Changes in Accounting Estimates and Errors

IAS 10

Events after the Reporting Period

IAS 11

Construction Contracts

IAS 12

Income Taxes

IAS 16

Property, Plant, and Equipment

IAS 17


IAS 18


IAS 19

Employee Benefits

IAS 20

Accounting for Government Grants and Disclosure of Government Assistance

IAS 21

The Effects of Changes in Foreign Exchange Rates

IAS 23

Borrowing Costs

IAS 24

Related Party Disclosures

IAS 26

Accounting and Reporting by Retirement Benefit Plans

IAS 27

Separate Financial Statements

IAS 28

Investments in Associates and Joint Ventures

IAS 29

Financial Reporting in Hyperinflationary Economies

IAS 32

Financial Instruments: Presentation

IAS 33

Earnings per Share

IAS 34

Interim Financial Reporting

IAS 36

Impairment of Assets

IAS 37

Provisions, Contingent Liabilities, and Contingent Assets

IAS 38

Intangible Assets

IAS 39

Financial Instruments: Recognition and Measurement

IAS 40

Investment Property

IAS 41


What are the Benefits of IFRS Reporting?

IFRS reporting has got many benefits; some of them are discussed below:

  • Wider acceptability: IFRS reporting is accepted globally. The financial statements prepared as per IFRS are widely accepted in all the countries. 
  • Comparability of Financials: Since IFRS reporting is done as per global standards, the companies of different nations following IFRS can be easily compared.
  • Elaborated Guidance: IFRS reporting provides elaborated guidance on the procedures to apply principles given in standards in varied situations.
  • Changes in standards as per economic conditions: The principles of IFRS reporting are revised or modified if there is any significant change in the economy.

Application of IFRS Reporting

Nations across the world can either adopt similar IFRS reporting standards, or it can be adopted after IFRS convergence. This has been explained in detail below:

  • Adoption of IFRS

The adoption of IFRS explains that the country will adopt IFRS in its original form without any deviation. The companies in that particular nation where IFRS is applicable must comply with these standards completely.

  • Convergence of IFRS

Countries can deviate from IFRS issued by IASB to some extent. The deviation can be a change of terminology used, modifying principles for recognizing assets, liabilities, income or expense, addition or deletion of disclosures (considering the local law of the country applying IFRS), addition or removal of examples.

The main logic of applying IFRS after applying convergence is that the rules of one country will conflict with the above principles. It will create confusion in corporate reporting. Hence, Indian Accounting Standards are substantially similar to the IFRS but with some carve-outs to ensure that these standards are suitable for application in the environment of the country opting for convergence.

Applicability of IFRS Reporting in India

India has opted to apply IFRS reporting after making some deviations from the original IFRS (. In India, IFRS reporting in their converged form is popularly known as Ind AS. These Ind AS are applicable to specified category of reporting as enumerated below:

In Case of Companies:

  • Companies whose equity or debt securities are listed or are in the process of being listed on any stock exchange in India or outside India.
  • Unlisted companies are having a net worth of Rs. 250 crore or more.
  • Holding, subsidiary, joint venture, or associate companies of companies covered in point (1) and (2) above.

Voluntary applicability: Company may voluntarily apply Indian accounting standards (Ind AS).

Companies on which Ind AS is not applicable will continue to follow existing Accounting Standards (AS), which will be upgraded by ICAI.

Banking Companies and Insurance Companies: 

Banking Companies and Insurance Companies have their statues. They shall apply Ind AS as notified by the Reserve Bank of India (RBI) and Insurance Regulatory Development Authority (IRDA), respectively.

However, for the purpose of consolidation, the insurance company shall provide financial statements in compliance to Ind AS for the purposes of preparation of consolidated financial statements by its parent, investor, as required by such parent or investor to comply with the requirements of these rules.

What is the Purpose of IFRS Reporting?

The primary purpose of implementing IFRS reporting is as follows:

  • It shall lower the cost of capital. 
  • It will bring in new opportunities.
  • IFRS Reporting will also improve brand value.
  • IFRS Reporting will enable benchmarking with global peers.
  • By way of IFRS reporting, the fair value can also be checked as if it is feasible or not.

The Indian authorities have taken steps to fully cover the IFRS for remarkable development and up-gradation of standards.

What is the Impact of IFRS Reporting in India?

The impact of IFRS in India is mentioned below:

  • In the Indian market, where the activities are generally carried out by small and medium-sized companies, determining an appropriate fair value is difficult.
  • India is a growing economy. Hence, it does not have adequate skilled resources for meeting the demands of complex technology and proper trainers that are required for the successful implementation of IFRS reporting.
  • The cost of complying with the IFRS reporting provisions is comparatively higher than the benefits received by it.
  • Understanding IFRS reporting is complicated as it is mostly based on the models and analytics.
  • With IFRS reporting, companies in India can present themselves in the foreign markets that were really difficult with the traditional methods of accounting principles.

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Frequently Asked Questions

The ICAI prepares an exposure draft of Ind AS based on provided IFRS Standards. After considering the comments, the proposed final Ind AS is approved by the ICAI Council and is then adopted by the Ministry of Corporate Affairs by way of public notification.

No, Indian Accounting Standards are based on and are based on and substantially converged with IFRS Standards as issued by the Board. India has not adopted IFRS Standards for reporting by domestic companies and has not yet formally committed to adopting IFRS Standards.

The Institute of Chartered Accountants of India (ICAI) had announced its decision to adopt IFRS in India with effect from 1 April 2011

International Financial Reporting Standards (IFRS) are accounting standards and principles set by the International Accounting Standard Board (IASB) and are becoming the global standard for the preparation of financial statements. India, as a step closer to convergence with IFRS, has adopted Ind-AS.

International Accounting Standard (IAS) and International Financial Reporting Standard (IFRS) are the same. The difference between them is that IAS represents old accounting standards, such as IAS 17 Leases. While IFRS represents a new accounting standard, such as IFRS 16 Leases.

IFRS Standards are required for use by all or most domestic publicly accountable entities. IFRS Standards are permitted, but not required, for use by at least some domestic publicly responsible entities, including listed companies and financial institutions. In most cases, an SME may also choose full IFRS Standards

With the Government’s decision to defer the implementation of Ind-AS, the new set of Indian Accounting Standards, which are fully converged with IFRS, the enthusiasm for the transition to IFRS has receded. India has decided in favor of convergence with IFRS, rather than adopting IFRS.

The IFRS is not a complicated or difficult standard, but it provides some specific recognition or measurement criteria to record the transaction in financial records or statements. When you learned all the standards issued by ICAI, then you move towards IFRS.

As a source of globally comparable information, IFRS Standards are also of prime importance to regulators around the world. And IFRS Standards contribute to economic efficiency by helping investors to identify opportunities and risks across the globe, thus improving capital allocation.

IAS and IFRS are the same. International Accounting Standard Committee issued IAS till 2001. IFRS refers to the new numbered series of pronouncements that the IASB is issuing, as distinct from the International Accounting Standards (IASs) series issued by its predecessor.

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