ADVANCED FINANCIAL REPORTING

Advanced Financial Reporting

International Accounting standards

International Accounting standards

An older set of standards stating how types of transactions and other events should be reflected in financial statements. In the past, international accounting standards (IAS) issued by the Board of the International Accounting Standards Committee (IASC).

Main Features of IAS

Accrual in the IAS (match revenues and expenses), revenues and expenditures recognized on the transaction at the time of their appearance (but not at the time of receipt or payment of money), recorded in the accounting records and recognized in the financial statements in the period to which they relate (International Accounting Standards Committee, 2000 ). The financial statements prepared in accordance with the accrual principle, inform users not only of past transactions related to payment and receipt of funds, but also the obligations to pay in the future and the resources of a cash receivable in the future.

The continuity of the enterprise in IAS: financial statements prepared on the assumption that the company is operating and will continue to operate in the foreseeable future. The Belarusian accounting system this possibility take into account, the user is not sure that the financial position and performance, presented in the accounts on a specified date, will remain the same, so that it faces risk (McGregor, 1999).

Basis of preparation of financial statements based on IAS:

Prudence, Aims to ensure that decision-making under uncertainty does not inflate assets and earnings and understate liabilities or expenses. According to this principle IAS, should be ready to repel potential losses and damages and to refrain from the reflection of revenues and income to their actual receipt.

Substance over form. It is necessary that the operations in the first match point and the economic reality, not just the established legal form.

The completeness of the information. According to IAS, information must be complete. However, it should consider its importance and value.

Was comparable. IAS users must be able to compare financial statements of the company, made at different times, to identify common trends, as well as financial statements of independent enterprises. Accounting policies cannot be carried out arbitrarily. Timeliness. Information must be provided in a timely manner. Any groundless delay leads to loss of value of such information.

Understandability. In IAS information should be easily understood by users.

Significance, Information must be relevant to a decision by the user.

Uniqueness. Information accepted if its omission or false statement affects the economic decisions of users taken on the basis of the financial report

Reliability, according to IAS, the information deemed reliable, if there are no major errors and distortions.

Fair presentation of information.

A match, According to this principle, IAS, expenses recognized in the period of expected income, while the Belarusian system of accounting expenses recorded after the fulfillment of certain requirements for documentation.

Principles of accounting based on IAS.

The principle of determining costs, upon initial reflection operations assets should be valued at their purchase price.

The principle of determination of income suggests that income should be reported at the time of sale of goods and services that bring these ...