On 31 October 2018, the IASB gave ‘Meaning of Material (Amendments to IAS 1 and IAS 8)’ to explain the meaning of ‘material’ and to adjust the definition utilized in the Conceptual Framework and the benchmarks themselves. The New IFRS standards 2020 changes are compelling yearly revealing periods starting on or after 1 January 2020. But, what do these new IFRS standards 2020 bring with them? In this article, we will take a quick look at the IFRS new standards 2020, and how KGRN can help you with them.
What is IFRS?
The International Financial Reporting Standards (IFRS) are accounting measures that are given by the International Accounting Standards Board (IASB) with the target of giving a typical accounting language to build straightforwardness in the introduction of financial data. The new IFRS standards will bring about a massive change in the way businesses maintain their records.
What is IASB?
The International Accounting Standards Board (IASB) is a free body framed in 2001 with the sole duty of setting up the International Financial Reporting Standards (IFRS). It succeeded in the International Accounting Standards Committee (IASC), which was prior given the duty of building up the universal accounting benchmarks. IASB is situated in London. It has likewise given the ‘Theoretical Framework for Financial Reporting’ given in September 2010 which gives an applied comprehension and the premise of the accounting firms in Dubai rehearses under IFRS. Hence, the IASB is critical in helping maintain International Financial Reporting Standards within the UAE.
New IFRS standards 2020: For enquiries call: +971 45 570 204 / Email Us: [email protected]
Parts of Financial Statements under IFRS
A total arrangement of financial statements arranged in consistence with the new IFRS standards 2020 would in a perfect world contain the accompanying:
- Firstly, an articulation of financial related situation as toward the finish of the period all the more usually referred to us as the ‘Accounting report’.
- Secondly, an articulation of benefit and misfortune for the year and the announcement of another complete salary – Other exhaustive pay would incorporate those things of pay/cost that are not perceived in the benefit and misfortune record to agree to the next important benchmarks.
- Also, both these announcements may either be consolidated or indicated independently.
- Thirdly, an explanation of changes in value – This would incorporate a compromise between sums appeared toward the start and the year’s end.
- Additionally, an explanation of incomes for the period.
- Lastly, notes to the financial advisory services in Dubai statements including an outline of noteworthy accounting arrangements pursued and other logical data.
The financial statements would some of the time additionally incorporate an announcement of the financial-related situation of a prior period in the accompanying situations:
- When an element applies an accounting strategy reflectively;
- When an element reflectively repeated a thing in its financial reports; or
- When a substance renames a thing in its financial reports.
Rundown of International Financial Reporting Standards (IFRS)
As of now examined, the Standards given by the IASB are called IFRS. The forerunner body, IASC, had anyway as of now given certain International Standards which are called International Accounting Standards (IAS). These IAS were given by the IASC somewhere in the range of 1973 and 2001. The two IAS and the new IFRS standards 2020 keep on being in power. The new International Financial Reporting Standards will also help bring more accountability to businesses in the UAE.
New IFRS standards 2020: For enquiries call: +971 45 570 204 / Email Us: [email protected]
The principles are recorded beneath:
- Firstly, Standard No
- Secondly, Standard Title
Let us now take a look at the various International Financial Reporting Standards, and their uses.
IFRS 1
In the first place, First-time Adoption of International Financial Reporting Standards
IFRS 2
Secondly, Share-based Payment
IFRS 3
Thirdly, Business Combinations
IFRS 4
Additionally, Insurance Contracts
IFRS 5
In addition to this, non-current Assets Held for Sale and Discontinue Operations
IFRS 6
Furthermore, exploration and Evaluation of Mineral Resources
IFRS 7
Also, Financial Instruments: Disclosures
IFRS 8
Additionally, Operating Segments
IFRS 9
Next comes financial Instruments
IFRS 10
In addition to this, consolidated Financial Statements
IFRS 11
Also, joint Arrangements
IFRS 12
Additionally, disclosure of Interests in Other Entities
IFRS 13
Incidentally, Fair Value Measurement
IFRS 14
Generally, Regulatory Deferral Accounts
IFRS 15
Revenue from Contracts with Customers
IFRS 16
Leases
IFRS 17
Insurance Contracts
IAS 1
Presentation of Financial Statements
IAS 2
Inventories
IAS 7
Statement of Cash Flows
IAS 8
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
Leases
IAS 18
Revenue
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
Lastly, Agriculture
Necessities of IFRS standards 2020
Introduction of Financial Statements
IFRS financial statements comprise of:
- Firstly, an articulation of financial position (asset report)
- Secondly, a proclamation of thorough pay. This might be exhibited as a solitary proclamation or with a different articulation of benefit and misfortune and an announcement of other far-reaching pay
- Thirdly, a proclamation of changes in value
- Additionally, an articulation of incomes
- Lastly, notes, including an outline of the noteworthy accounting approach.
- Relative data is required for the earlier detailing time frame.
General Features in IFRS
Coming up next are the general highlights in IFRS:
Firstly, fair introduction and consistency with new IFRS standards 2020:
Fair introduction requires the devoted portrayal of the impacts of the exchanges, different occasions, and conditions as per the definitions and acknowledgement criteria for resources, liabilities, pay and costs set out in the Framework of IFRS.
Secondly, growing concern:
Financial articulations are available on a going concern premise except if the executives either plan to sell the element or to stop exchanging or has no practical other option yet to do as such.
Thirdly, accrual premise of accounting:
Firstly, a substance will perceive things as resources, liabilities, value, salary, and costs when they fulfil the definition and acknowledgement criteria for those components in the Framework of new IFRS standards 2020.
Fourthly, materiality and collection:
Every material class of comparable things must be exhibited independently. Things that are of a disparate sort of capacity will be exhibited independently except if they are irrelevant
Next, comes Offsetting:
Offsetting is commonly illegal in new IFRS standards in 2020. Anyway, certain models require balancing when explicit conditions are fulfilled, (for example, in the event of the representing characterized advantage liabilities in IAS 19] and the net introduction of conceded charge liabilities and conceded charge resources in IAS 12).
Additionally, there is a Frequency of announcing:
IFRS requires that in any event every year a total arrangement of the introduction of feasibility reports in Dubai. Anyway recorded organizations for the most part likewise distribute between time financial statements (for which the accounting is completely new IFRS standards 2020 compliant) for which the introduction is as per IAS 34 Interim Financing Reporting. Hence, businesses must keep these new IFRS standards 2020 in mind while filing their reports.
Next, comes comparative data:
New IFRS standards 2020 expects substances to display relative data regarding the former time frame for all sums detailed in the present time frame’s financial statements. What’s more similar data will likewise accommodate account and distinct data if it is important to understanding the present time frame’s financial statements. The standard IAS 1 likewise requires an extra proclamation of financial position (additionally called a third asset report) when a substance applies an accounting approach reflectively or makes a review rehashing of things in its financial reports, or when it renames things in its financial statements. This, for instance, happened with the appropriation of the reconsidered standard IAS 19 (starting at 1 January 2013) or when the new combination guidelines IFRS 10-11-12 were received (starting at 1 January 2013 or 2014 for organizations in the European Union)
Lastly, consistency of introduction:
New IFRS standards 2020 necessitates that the introduction and order of things in the financial statements is held starting with one period then onto the next except if:
- it is clear, after a noteworthy change in the idea of the substance’s activities or an audit of its financial statements, that another introduction or arrangement would be increasingly proper having respect to the criteria for the choice and use of accounting approaches in IAS 8; or
- AN IFRS standard requires a change.
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New IFRS standards 2020: For enquiries call: +971 45 570 204 / Email Us: [email protected]
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