IAS Accounting Standards
IAS accounting standards are international accounting standards which states that in financial systems how certain types of proceedings and actions are reflected. These standards are issued by IASC (International Accounting Standards Committee) board between 1973 and 2001.Detaild analysis, documents that are authoritative and new IAS guidelines are provided by IAS standard. Priorities of IAS include: cementing the conditions which are necessary for an integrated and efficient capital market which can be done by improving accounts comparability in single market to promote competition and capital’s free movement.
Objectives of this standard are to build certain principles for the recognition and measurement of financial assets, financial liabilities and contracts which are used to sell or buy the items which are non-financial. AS 32: Financial instruments contain all the requirements for presenting information required about financial instruments. FRS 7 financial instruments contain information for disclosure of financial instruments.
Main features of IAS 1 include a complete set of financial statement which is comprised of:
Balance sheet
• Income statement
Statement of changes in equity which shows all the changes in equity or all those changes in equity other than those that arise from transactions with equity shareholders acting in their capacity as equity holders.
• Cash flow statement
Notes which is comprised of a summary of prominent accounting policies and other explanatory notes.
Objective of IAS 1 is to prescribe a basis for presentation of general purpose financial statements to ensure comparability with the financial statement of entity of previous period and with financial statement of other entities. Like IAS 1 we have IAS 2 as well. Prescribing the treatment of accounting for inventories is one of the objective of IAS 2.Guidance for the determination of cost of inventories is provided by it. It can also be used for recognition of an expense which includes any write down to net reliable value. Guidance on cost formulas is also provided by it. Cost formulas are used for assigning cost to the inventors. Assets which are held for sale in ordinary course of business are included in inventories.
Written by: Matt
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Tagged as accounting for inventories, analysis documents, balance sheet income statement, cash flow statement, comparability, explanatory notes, financial assets, financial instruments, financial liabilities, financial statement, financial statements, general purpose, international accounting standards, international accounting standards committee, presenting information, priorities, shareholders, single market + Categorized as Economy articles, Finance