To help you imagine what your company’s accounts might look like under International Financial Reporting Standards, we have published fictitious financial statements for various types of entities to illustrate the disclosure and presentation requirements.
In May 2002 the International Accounting Standards Board (IASB) published a revised Preface to International Financial Reporting Standards which defines IFRS to include standards and interpretations approved by the IASB as well as International Accounting Standards (IAS) and SIC Interpretations issued by the previous International Accounting Standards Committee.
In July 2002, the Financial Reporting Council (FRC) announced that the AASB will work towards the implementation of International Accounting Standards for the financial years beginning on or after 1 January 2005.
There are presently 33 IASs with the intention to leave three existing standards unrevised before 1 January 2005. Refer to CPA Australia’s IFRS Snapshot for an understanding of which AASBs and IASs are subject to change under the adoption of IFRSs by 2005.
CPA Australia welcomes the decision to implement IASB standards fully.
Throughout this process, it is important that members are kept up-to-date on the progress of IFRS and are motivated to ensure the 2005 deadline is met.
More importantly, it requires members to be proactive about their education of IFRS. It also requires members to be motivated within their own entities to start this process early and to implement a strategy to ensure business risks are mitigated.
‘According to a recent survey by PricewaterhouseCoopers of more than 650 CFOs across the European Union found that almost half of those who had moved to IAS found that it took longer than expected.’