IFRS Concepts

Basics: International Financial Reporting Standards (IFRS), together with International Accounting Standards (IAS), are a "principles-based" set of standards that establish broad rules rather than dictating specific accounting treatments. From 1973 to 2001, the International Accounting Standards Committee (IASC) issued IAS. In April 2001 the International Accounting Standards Board (IASB) adopted all IAS and began developing new standards called IFRS. It is noteworthy that an IAS remains in effect unless replaced by an IFRS.

Thus, International Financial Reporting Standards (IFRS) are a set of accounting standards. Currently they are issued by the International Accounting Standards Board (IASB). Many of the IFRS standards developed from the older International Accounting Standards (IAS) and while IAS are no longer produced, they are still in effect unless replaced by an IFRS.

What is XBRL?

XBRL stands for eXtensible Business Reporting Language and is a language for the electronic communication of business and financial data which is set to revolutionise business reporting around the world. It provides major benefits in the preparation, analysis and communication of business information. It offers cost savings, greater efficiency and improved accuracy and reliability to all those involved in supplying or using financial data.

The IASC Foundation has developed a high quality XBRL ‘taxonomy’ for IFRSs (in effect, a dictionary of data tags that explains what each tagged element is and how it should be treated under IFRSs) that will be maintained in line with the annual Bound Volume of IFRSs.