accounting standards and ifrs 2

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Presentation

The topic of our presentation is Accounting Standards &IFRS-2

Accounting standard

A principle that guides and standardizes accounting practices .

It is necessary so that financial statement are meaningful across a wide variety of businesses.

Accounting standard

Without it the accounting rules and different companies would make comparative analysis almost impossible .

Developer of Accounting Standards

International Federation of Accountants (IFAC)

IFAC

Founded in 1977

It has 179 members and associates in 130 countries and jurisdictions .

It is the global organization for the accountancy profession .

Independent standard-settings boards of IFAC

1. International Auditing and Assurance Standards Board .

2.International Ethics Standards Board for Accountants

4.International Accounting Education Standards Board

3.International Public Sector Accounting Standards Board

STANDARDS OF ACCOUNTING


International Financial Reporting Standards(IFRS) - 14 International Accounting Standards(IAS) - 41 IFRIC Interpretations - 21 SIC- Interpretations - 33


IFRS 14IAS 41IFRIC21SIC33

Other pronouncements

Name Issued

Conceptual Framework for Financial Statements 2010

Preface to International Financial Reporting Standards 2002

IFRS for Small and Medium Sized Entities 2009

IFRS Practice Statement Management Commentary 2010

Standards setting process

I F R S-2

IFRS-2

The objective of IFRS 2 is to specify the financial reporting an entity when it undertakes a share based payment .

IFRS 2 requires an entity to recognise share based payment transactions in its financial statements including transactions with employees or other parties to be settled in cash, other assets, or equity instruments of the entity.

IFRS 2 as issued by the IASB requires share based payments to be treated as an expense. The amount charged as an expense will be measured at the fair value of goods or services received.

IFRS-2

IFRS 2 sets out measurement principles and specific requirements for 3 types of share based transactions:-

Equity settled share based transactions - in which the entity receives goods or services as consideration for equity instruments of the entity (including shares or share options);

2) Cash settled Share Based Payment Transactions- in which the entity acquires goods or services by incurring liabilities to the supplier of those goods or services for amounts that are based on the price (or value) of the entitys shares or other equity instruments of the entity

3) Transactions with Cash Alternatives - in which the entity receives or acquires goods or services and the terms of the arrangement provide either the entity or the supplier of those goods or services with a choice of whether the entity settles the transaction in cash or by issuing equity instruments.

IFRS 2 Disclosure Requirements

This standard prescribes various disclosure requirements to enable the users of financial statements to understand:

The nature and extent of Share based payment arrangements that existed during the priod.

How the fair value of goods or services received, or the fair value of the equity instruments granted , during the period was determined.

The effect of share based transactions on the entitys profit or loss for the period and on its financial position.

Question ...????

Reference

http://www.ifac.org/about-ifac

http://www.ifrs.org/IFRSs/IFRS.htm

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accounting standards and ifrs 2

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