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Introduction:

International Financial Reporting Standards (IFRS) areprinciples-based Standards, Interpretations and theFramework adopted by the International Accounting

Standards Board (IASB).

Many of the standards forming part of IFRS areknown by the older name of International AccountingStandards (IAS).IAS were issued between 1973 and 2001 bythe Board of the International Accounting Standards

Committee (IASC). On 1April 2001, the new IASB took overfrom the IASC the responsibility for setting InternationalAccounting Standards. During its first meeting the new Boardadopted existing IAS and SICs. The IASB has continued todevelop standards calling the new standards IFRS.

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List of IFRS statements

IFRS 1- First time Adoption of International FinancialReporting Standards

IFRS 2- Share-based PaymentIFRS 3- Business Combinations

IFRS 4- Insurance ContractsIFRS 5- Non-current Assets Held for Sale and Discontinued

OperationsIFRS 6- Exploration for and Evaluation of Mineral

ResourcesIFRS 7- Financial Instruments: DisclosuresIFRS 8- Operating SegmentsIFRS 9- Financial Instruments

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Structure of IFRS

IFRS are considered a "principles based" set of standards in that theyestablish broad rules as well as dictatingspecific treatments.

International Financial Reporting Standards comprise:

International Financial Reporting Standards (IFRS)standards issuedafter 2001 International Accounting Standards (IAS)standards issued before

2001 Interpretations originated from the International Financial Reporting

Interpretations Committee (IFRIC)issued after 2001 Standing Interpretations Committee (SIC)issued before 2001 Framework for the Preparation and Presentation of FinancialStatements

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Requirements of IFRSIFRS financial statements consist of (IAS1.8)

a Statement of Financial Position

Statement of Comprehensive Income or two separate statements comprisingan Income Statement and separately a Statement of Comprehensive Income,

which reconciles Profit or Loss on the Income statement to total comprehensiveincome

a Statement of Changes in Equity (SOCE)

a Cash Flow Statement or Statement of Cash Flows

notes, including a summary of the significant accounting policiesComparative information is required for the prior reporting

period (IAS 1.36). An entity preparing IFRSaccounts for the first time must apply IFRS in full for the current and comparative

period although there aretransitional exemptions (IFRS1.7).

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Adoption of IFRS

IFRS are used in many parts of the world, including the

European Union, Hong Kong, Australia, Malaysia, Pakistan,GCC countries, Russia, South Africa, Singapore and Turkey.As of 27 August 2008, more than 113 countries around the

world, including all of Europe, currently require or permit IFRSreporting. Approximately 85 of those countries require IFRS

reporting for all domestic, listed companies. In addition, theUS is also gearing towards IFRS. The SEC in the US is slowly but

progressively shifting from requiring only US GAAP toaccepting IFRS and will most likely accept IFRS standards inthe long term

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Objective of financial statements

A financial statement should reflect true and fairview of the business affairs of the organization. Asthesestatements are used by various constituents of

the society / regulators, they need to reflect trueview of thefinancial position of the organization.