Financial Reporting Standards

Leases 18 Revenue recognition 19 Employee benefits 20 Government Grants accounting and disclosures 21 Effects of changes in foreign exchange 22 Business combinations 23 Borrowing costs 24 Related party disclosures 25 Accounting for investments 26 Retirement benefit plans – accounting and reporting 27 Consolidated financial statements 28 Investments in associates 29 Financial reporting in hyperinflationary economy 30 Financial statements of financial institutions – disclosures 31 Joint ventures 32 Financial instruments – presentation 33 Earnings per share 34 Interim financial reporting 35 Discontinued operations 36 Impairment of assets 37 Provisions, contingent assets and liabilities 38 Intangible assets 39 Financial instruments – recognition and measurement 40 Investment property 41 Agriculture

[linkunit]Above financial reporting standards are espoused by many countries to ensure transparency in financial reporting. But at the same these standards do not supersede the local legislations. Once adopted the local listed companies and large institutions are required to prepare financial statements in accordance with the principles of international financial reporting standards. The auditors specifically audit the financial statements to check the implementation of the standards and their adherence in letter and spirit.

The countries assuming and implementing the financial reporting standards attract investments to a great extent due to the confidence of investors in transparent financial reporting based on internationally accepted financial reporting standards. The financial information presented in a uniform format on the basis of internationally accepted principles becomes more understandable and reliable for the alien investors and they become capable of making decisions regarding their investments in far reaching countries and out of home ventures.