WELCOME

What is IFRS?
IFRS stands for International Financial Reporting Standards. These are the accounting standards issued by the International Accounting Standards Board (IASB).

IASC Constitution the current International Financial Reporting Structure

National Standard Setters and other interested parties

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IFRS Pronouncements

STANDARDS

International Financial Reporting Standards (IFRS) and International Accounting Standards (IAS)
www.iasb.org www.cfodirect.com

International Financial Reporting Interpretations Committee (IFRIC) And Standing Interpretation committee (SIC)

Type IFRS IAS IFRIC

Number 9 (9) 29 (41) 16 (19) 11 (32) Around 8

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Exposure Drafts and Draft Interpretation

SIC Exposure drafts and Interpretation

IFRS, the Global Revolution

More than 100 countries require, permit, or are converging to IFRS All major capital markets are changing
India US UK France Canada Germany Japan Spain Switzerland Australia Converging to IFRS Converging to IFRS IFRS for listed IFRS for listed Converging to IFRS IFRS for listed Converging to IFRS IFRS for listed IFRS or US GAAP IFRS (adapted)

Countries converging to IFRS with the goal of adoption Countries that require or permit IFRS Countries with no current plan to adopt
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IFRS Proposed Roadmap for India

Opening balance sheet as at April 1* using IFRS-converged accounting standards

2011
NSE - Nifty 50 companies, BSE - Sensex 30 companies, Companies whose shares or other securities listed outside India; Companies listed or not, having a net worth in excess of Rs. 1,000 crores [Note 1]

2012
All insurance companies

2013
Companies listed or not, having a net worth between Rs.500 crores and Rs.1000 crores [Note 1] All scheduled commercial banks Urban co-operative banks having a net worth in excess of Rs. 300 crores NBFCs - Nifty 50 or Sensex 30 NBFCs listed or not, having a net worth > Rs.1,000 crores

2014
Listed companies having a net worth of less than Rs.500 crores [Note 1]

Urban co-operative banks having net worth between Rs. 200 to Rs. 300 crores NBFCs (all other Listed) NBFCs (other Unlisted) having net worth between Rs. 500 to Rs. 1000 crores

Companies not covered in the above chart will apply existing Indian accounting standards OR voluntarily opt to apply the IFRS-converged accounting standards.
Note 1. These excludes insurance companies, banks and non-banking finance companies (NBFCs). *If the financial year of a company commences on a date other than April 1, then the opening balance sheet needs to be prepared from the beginning of the new financial year of the company. Page 6

Presentation of financial statement

Presentation of Financial Statements

Components of financial statements

A complete set of financial statements comprises

The primary statements

Statement of financial position for the period end Statement of comprehensive income for the period Statement of changes in equity for the period Statement of cash flows for the period

Notes, including summary of accounting policies and other explanatory information

An entity may use titles for the statements other than those prescribed in IAS 1R, however the titles used shall not be misleading. All primary statements are of equal prominence
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Presentation of Financial Statements

Comparative information
Comparatives required for all numerical information Comparatives required for narrative and descriptive information when it is

relevant to an understanding of the current periods financial statement

Additional statement of financial position
When retrospective application of accounting policies, restatements or reclassifications are

made
As at beginning of earliest comparative period Not required IF not impacted and this is disclosed

Note : For entities covered under Phase I comparatives information is not mandatory

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Presentation of Financial Statements

Statement of Financial Position Basis of presentation

Classified Balance sheet An entity shall present current and non-current asset, and current and non- current liability as separate classification on the face of the statement of financial position Exception to above rule When a presentation based on liquidity provides information that is reliable and more relevant. All assets and liabilities are required to be presented in the order of liquidity. Choice driven by type of business Manufacturers and retailers current/non-current basis Financial institutions, banks and real estate companies liquidity basis

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Presentation of Financial Statements

Statement of Financial Position Current vs. Non-current Classification

Current asset
Expected to be realised, sold or consumed within entitys normal operating cycle Held primarily for trading purposes Expected to be realised within 12 months after balance sheet date Unrestricted cash or cash equivalent

Current liability
Expected to be settled within entitys normal operating cycle Held primarily for trading purposes Expected to be settled within 12 months after balance sheet date No unconditional right to defer settlement for at least 12 months after balance sheet date

An entity shall classify all other assets as non-current.

An entity shall classify all other liabilities as non-current.

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Presentation of Financial Statements

Statement of Financial Position Minimum line items

Property, plant and equipment Investment property Intangible assets Financial assets (other than those shown Held for sale assets and assets included

in disposal groups
Trade and other payables Provisions Financial liabilities (other than those

on other line items)

Investments accounted for using the equity

shown on other line items)

Current tax assets and liabilities Deferred tax assets and liabilities Liabilities included in disposal groups Minority interest Issued capital and reserves attributable to

method
Biological assets Inventories Trade and other receivables Cash and cash equivalents

owners of the parent

An entity shall present additional line items, headings and subtotals in the statement of financial position when such presentation is relevant to an understanding of the entity's financial position.
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Presentation of Financial Statements

Statement of Comprehensive Income Basis of presentation

An entity shall present all items of income and expense recognised in a period in a single statement of comprehensive income, or in two statements: a statement displaying components of profit or loss (separate income statement) and a second statement beginning with profit or loss and displaying components of other comprehensive income (statement of comprehensive income).

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Presentation of Financial Statements

Statement of Comprehensive Income Application of the requirement to analyse expenses

Choose most relevant presentation analysis method by: - Function - usually used by manufacturers, retailers, etc. - Nature - usually used by financial institutions, etc. If analysis by function is provided, additional disclosures analysing the nature of expenses is required

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Presentation of Financial Statements

Statement of Comprehensive Income Minimum line items

Revenue Finance costs Share of profit or loss of associates Each component of other

comprehensive income by nature

Share of other comprehensive

and joint ventures

Tax expense Discontinued operations Profit or loss Profit or loss attributable to: - Minority interest - Owners of the parent

income of associates and joint ventures

Total comprehensive income

attributable to: - Minority interest - Owners of the parent

An entity shall not present any items of income or expense as extraordinary items
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Presentation of Financial Statements

Other Comprehensive Income (OCI)

All non-owners change in equity are recognised in OCI Components of OCI shall be presented either net of related taxes or at gross of related tax with one amount representing aggregate amount of income tax relating to those components. Items of income and expense are recognised in profit or loss unless standards prescribe or permit otherwise.

Components of Other Comprehensive Income

Changes in revaluation surplus (on account of PPE and intangibles) Actuarial gains and losses on defined benefit plans recognised in full in equity, if the entity elects the option available under IAS 19 Gains and losses arising from translation of a foreign operation Gains and losses on re-measuring available-for-sale financial assets Effective portion of gains and losses on hedging instruments in a cash flow hedge.
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Presentation of Financial Statements

Statement of changes in shareholders equity

This statement shows movements/ transactions during the reporting period that have

affected the shareholders equity.

It is generally tabular in approach with the various categories of equity across the top

common shares, additional paid-in capital, retained earnings, other reserves.

The transactions are listed line by line and include amongst others net income for

year, cumulative translation adjustments (if applicable), issue of shares, other movements in shares. equity from one period to the next.

the dividends paid,

The outcome is a reconciliation in the movement of each category of shareholders

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Presentation of Financial Statements

Statement of cash flows

Cash and cash equivalents

Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. Generally, only investments with original maturities of three months or less qualify as cash equivalents. They may also include bank overdrafts. Under Indian GAAP bank overdrafts are excluded from cash and cash equivalents Examples: fixed deposits, Treasury bills, commercial paper etc. Requires disclosure of policy used for determining items treated as cash equivalents

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Presentation of Financial Statements

Notes to financial statements / other matters

It includes:

Background of the Company Significant accounting policies Accounting estimates Changes in accounting policies Concentration of risks Schedule of individual material items on B/s, I/s, CF and Sh Equity Explanation of material transaction e.g., acquisition, disposal. Recently issued pronouncements and their implications Presentation currency and the level of rounding

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Presentation of Financial Statements

Notes to financial statements / other matters

It includes:
Statement of compliance with IFRS Basis of preparation of the financial statements and the specific accounting policies used The judgments, apart from those involving estimations that management has made, in the

application of accounting policies

Cross-reference each item in the financial statements to any related information in the

notes.
Dividends proposed or declared but not recognised as a distribution to owners during the

period, and the related amount per share

Other Disclosures
o Domicile and legal form of the entity, its country of incorporation and the address of its registered

office
o Description of the nature of the entity's operations and its principal activities o The name of the parent and the ultimate parent of the group

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Thank You