South Africa Recognized The Need To Prepare Their Financial Statements In Line With International Standards. What Is This International Standard Called?


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Deborah Mann Profile
Deborah Mann answered
The standard that you are referring to in your question is known as the International Financial Reporting Standards (IRFS). Over 100 countries follow and adhere to these standards, and that number is still increasing.

The International Financial Reporting Standards are principle-based standards, interpretations and framework that was brought out in 1989 and adopted by the International Accounting Boards Standard. The IRFS comprises of five different elements which are the International Financial Reporting Standards (IRFS) which applies to standards that were issued after 2001. The International Accounting Standards (IAS) which applies to standards that were issued before 2001. The Interpretations originated from the International Financial Reporting Interpretations Committee (IFRIC) which was issued after 2001. The Standing Interpretations Committee (SIC) which was issued before 2001. And finally the Framework for the Preparation and Presentation of Financial Statements (1989).

When it comes to creating an IFRS financial statement, there are several things that must be included. First of all there must be a statement of the financial position. There must be a statement of comprehensive income, or two separate statements that include an income statement and a Statement of Comprehensive Income. There must be a statement of changes in equity (SOCE), a cash flow statement, otherwise known as a statement of cash flows. And finally there must be notes at the end which should include a summary of all the significant accounting policies.

The International Accounting Boards Standard (IASB) is based in London in the United Kingdom. It was founded on the 1st of April 2001 and is an independent and privately funded accounting standard setter. There are sixteen members of the IASB and each of these gets one vote when it comes to choosing the new standards. However, a unanimous vote is not required for any type of standard, exposure draft or final interpretation to be published.
Amanda Wells Profile
Amanda Wells answered
This is known as International Financial Reporting Standards or IFRS. These standards are now followed by over 100 countries, that is the majority of countries, and the number is increasing. The link I've given you includes a fact sheet on introducing the IFRS to South Africa - you can find it on the left side of the main page.

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