IFRS and XBRL: How to improve Business Reporting through Technology and Object Tracking

Part One

International Financial Reporting Standards (IFRS)

TIPS FOR READERS

One of the most noteworthy business reporting developments in the history of accounting is the drafting, distribution and usage of International Financial Reporting Standards. This significant initiative, as the naming suggests, has standardised the principles of financial reporting. As a direct result, there is greater integrity in the use of business reports that, in turn, has a positive impact on subsequent decision making.

In addition, the application of IFRS has facilitated reliable comparative analysis between reporting entities within the same industry or geographical location. Of course, on that basis, dependable comparisons can also be conducted across national borders, through the availability of IFRS translations, to enable usage internationally.

It is noteworthy that these Standards are historically grown, which has led to the inclusion and mix-up of objects/items and valuation.

Summary

The first section presents an introduction to, and objectives of, International Financial Reporting Standards. The second section poses the question: how important are IFRS to business? In responding, the text addresses IFRS and legal objectives. The convergence of IFRS and US GAAP is also a topic of conversation, as is reconciliation with respect to US GAAP. Thereafter, a wider ambit is brought in by way of the International Organization of Securities Commissions (IOSCO). This section concludes with the role ...