Skip to content

COMMERCEIETS

STUDY TO ENLIGHTEN YOURSELF

  • BCOM GNDU NOTES – SCORE BEST IN YOUR EXAMS!!!
  • MANAGEMENT ACCOUNTING
  • BUSINESS ORGANISATION
  • DIRECT TAX LAWS
  • INTERNATIONAL BUSINESS
  • INDUSTRIAL AND LABOUR LAWS
  • OPERATIONS RESEARCH
  • RISK MANAGEMENT AND INSURANCE
  • BUSINESS STATISTICS
  • PARTNERSHIP ACCOUNTS
  • CORPORATE ACCOUNTING
  • COMMERCIAL LAW
  • MANAGERIAL ECONOMICS
  • BUSINESS MANAGEMENT
  • 11 ACCOUNTANCY
  • GOODS AND SERVICE TAX
  • MICRO ECONOMICS
  • 12 ACCOUNTANCY
  • KEY DIFFERENCES
  • COST ACCOUNTING
  • FINANCIAL ACCOUNTING
  • FINANCIAL MANAGEMENT
  • Toggle search form
......

BENEFITS OF IFRS

Posted on August 5, 2019 By commerceiets No Comments on BENEFITS OF IFRS

Table of Contents

  • BENEFITS OF IFRS
        • HELPFUL TO ENTERPRISES OPERATING GLOBALLY
        • HELPFUL TO INVESTORS
        • HELPFUL IN INDUSTRY
        • LOWER COST OF RAISING FUNDS ABROAD
        • HELPFUL TO ACCOUNTING PROFESSIONALS
        • TRUE AND FAIR VIEW

BENEFITS OF IFRS

IFRS stands for International Financial reporting Standards. These are the standards issued by the International Accounting Standard Board. It also covers the wide range of International Accounting Standards issued by the International Accounting Standard Committee. IFRS has replaced the GAAP (Generally Accepted Accounting Principles). These standards are to be used by the business organisations that are engaged in commercial, financial, industrial and other similar activities. IFRS are very useful for business enterprises carrying on the business worldwide. The benefits of IFRS are as follows:

HELPFUL TO ENTERPRISES OPERATING GLOBALLY

The business entities having business operations in different countries will face problems of consolidation of financial statements of they prepare their financial statements according to the standards prevailing in different countries. IFRS unify the accounting practices worldwide as a result of which the problem of consolidation is avoided.

HELPFUL TO INVESTORS

Investors require high equality, relevant, reliable, transparent and comparable information in financial statements in order to make economic decisions. The use of common set of high quality accounting standards i.e. IFRS would be helpful to investors in comparison to financial statements prepared under different accounting standards adopted by different countries.

HELPFUL IN INDUSTRY

The obtaining of funds from outside the country becomes easier if the financial statements comply with Globally Accepted Accounting standards. Now a days most of the stock exchanges require information as per IFRS and convergence to IFRS would enable Indian Companies to access international capital market easily.

LOWER COST OF RAISING FUNDS ABROAD

The cost of raising funds abroad can be minimized under IFRS as there will be no need to prepare two sets of financial statements- one set on the basis of IFRS and another on the basis of Accounting Standards.

HELPFUL TO ACCOUNTING PROFESSIONALS

Accounting professionals will be able to provide better services in countries adopting IFRS.

TRUE AND FAIR VIEW

In IFRS based financial statements assets are valued on the concept of true and fair value i.e. on the basis of their market value. Indian Accounting Standards ignore this concept.

CONNECT ON LINKEDIN
Also StudyAlso StudyAlso StudyAlso Study
AccountingNon profit organisationDepreciationLiquidity ratios
Nature of AccountingReceipts and Payments AccountDepreciation AccountingAcid Test Ratio
Benefits of AccountingScope of accountingHire Purchase AccountingCash Ratio
Difference between cost accounting and financial accountingFinancial accounting, cost accounting and management accountingDifference between hire purchase and instalment systemFinancial ratio analysis
Difference between transaction and eventTransactionsUsers of AccountingRatio analysis
Limitation of AccountingCapital ExpenditureInstalment SystemDifference between consignment and sale
Book KeepingRevenue ExpenditureReserves AccountingAbnormal loss vs normal loss in consignment
AccountancyDifference between capital and revenue expenditureProvisions Treatment of loss on consignment
Accounting as science or an artAccounting EquationSingle entry systemAccounting treatment of consignment
Book Keeping vs accountingDeferred Revenue ExpenditureDifference between statement of affairs and balance sheetJoint venture vs consignment
Book keeping vs accountancyCapital receiptIFRSDepartmental Accounting
Accounting vs accountancyRevenue receiptBalance SheetMethods of departmental accounting
Basis of AccountingDifference between capital and revenue receiptProfit and loss AccountAllocation of expenses in departmental accounting
Branches of accountingDifference between accounting concepts and conventionsTrading AccountInter-departmental transfers
Cash and mercantile system of accountingAccounting StandardsVoyage AccountDifferent types of branches
Accounting PrinciplesObjectives of AccountingAccounting for Incomplete VoyageDepartmental vs Branch accounting
Golden ru les of accountingProcess of AccountingJoint ventureMethods of branch accounting
Double entry system of book keepingScope of AccountingJoint Venture Vs PartnershipIncorporation of branch trial balance
Double entry vs Single entry systemAccounting Concepts vs Accounting conventionsMethods of recording transactions in Joint VentureGarner VS Murray Rule
History of AccountingDifference between provisions and reservesConsignment

     

FINANCIAL ACCOUNTING Tags:ACCOUNTING STANDARDS, IFRS

Post navigation

Previous Post: IFRS
Next Post: LAW OF DEMAND VS ELASTICITY OF DEMAND

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

  • 11 ACCOUNTANCY
  • 12 ACCOUNTANCY
  • BCOM GNDU NOTES
  • BUSINESS MANAGEMENT
  • BUSINESS ORGANISATION
  • BUSINESS STATISTICS
  • COMMERCIAL LAW
  • CORPORATE ACCOUNTING
  • CORPORATE OR COMPANY LAW
  • COST ACCOUNTING
  • DIRECT TAX LAWS
  • FINANCIAL ACCOUNTING
  • FINANCIAL MANAGEMENT
  • FINANCIAL MARKET OPERATIONS
  • GOODS AND SERVICE TAX
  • INDUSTRIAL AND LABOUR LAWS
  • INTERNATIONAL BUSINESS
  • KEY DIFFERENCES
  • MANAGEMENT ACCOUNTING
  • MANAGERIAL ECONOMICS
  • MICRO ECONOMICS
  • OPERATIONS RESEARCH
  • PARTNERSHIP ACCOUNTS
  • RISK MANAGEMENT AND INSURANCE

Copyright © 2023 COMMERCEIETS.

Powered by PressBook WordPress theme