IAS

(noun)

International Financial Reporting Standards (IFRS) are designed as a common global language for business affairs so that company accounts are understandable and comparable across international boundaries.

Examples of IAS in the following topics:

  • Limitations of the Statement of Cash Flows

    • Under IAS 7, cash flow statement must include changes in both cash and cash equivalents.
    • Bank borrowings (overdraft) in certain countries can be included in cash equivalents under the IAS 7.
    • Interest paid can be included in operating activities or financing activities under the IAS 7.
    • Non-cash investing and financing activities are disclosed in footnotes under IAS 7.
    • This chart illustrates the various important enactments of the International Accounting Standards, including the IAS 7.

  • Defining the Statement of Cash Flows

    • International Accounting Standard 7 (IAS 7), is the International Accounting Standard that deals with cash flow statements.

  • Extraordinary Gains and Losses

    • (IAS 1.87) The amount of each of these gains or losses, net of the income tax effect, is reported separately in the income statement.

  • Limitations of the Balance Sheet

    • The International Accounting Standards Board (IASB) offers some guidance (IAS 38) as to how intangible assets should be accounted for in financial statements.

  • Fixed Assets Turnover Ratio

    • According to International Accounting Standard (IAS) 16, Fixed Assets are assets which have future economic benefit that is probable to flow into the entity and which have a cost that can be measured reliably.

  • Accounting Flows and Cash Flows

    • The International Accounting Standards (IAS) and the Generally Accepted Accounting Principles (GAAP) are legislative descriptions of expectations and norms within the accounting field.