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C H A P T E R

Accounting Standards:

Concepts and Objectives,

International Financial Reporting

Standards (IFRS)

MEANING OF KEY TERMS USED IN THE CHAPTER

1. Accounting Standards Accounting Standards are the written policy documents covering the
aspects of recognition, measurement, treatment, presentation and
disclosure of accounting transactions in the financial statements.
2. International Financial International Financial Reporting Standards (IFRS) are a set of
Reporting Standards accounting standards issued by International Accounting Standards
(IFRS) Board (IASB) based on sound and clearly stated principles.

CHAPTER SUMMARY

• Accounting Standards are a set of guidelines, i.e., generally accepted accounting principles, issued by the
accounting body of the country such as The Institute of Chartered Accountants of India, that are followed
for preparation and presentation of financial statements.
• The objective of setting Accounting Standards, is to bring uniformity in accounting practices and to ensure
transparency, consistency and comparability.
• International Financial Reporting Standards (IFRS) are a set of accounting standards issued by IASB,
which came into existence in the year 2001.
• IASB adopted existing International Accounting Standards (IAS) and SIC as their standards.
• IFRS-compliant financial statements are:
(i) Statement of Financial Position,
(ii) Comprehensive Income Statement,

(iii) Statement of Changes in Equity,
(iv) Statement of Cash Flow, and
(v) Notes and Summary of Significant Accounting Policies.