Accounting standard can be
described as a publication made by appropriate bodies saddled with the
responsibility of setting accounting standards, be it locally or
internationally, the compliance of which is mandatory to be employed in the
preparation of financial statement by the preparer and the users of accounting
information.
In Nigeria, accounting
standards are issued by the Federal Reporting Council of Nigeria (FRCN) which
was formerly known as Nigerian Accounting Standard Board (NASB) while it is
issued at the international level by the International Accounting Standards
Board (IASB) formerly known as International Accounting Standards Committee
(IASC).
What is International
Accounting Standard Board (IASB) or IFRS Foundation?
The International
Accounting Standard Board (IASB) is a body under the IFRS Foundation assigned
with the responsibilities of setting up accounting standards. The history of
the foundation can be traced back to 1973 when the body was set up as the
International Accounting Standard Committee (IASC) saddled with the
responsibility of creating accounting standards. Twenty-five years after a
successful operation, the body thought of restructuring by converging the
international and national accounting standards to produce a uniform standard
that may be adopted globally. This led to the formation of a committee in 1997
whose report was presented for review and scrutiny in 1998 before later being
published in 1999. The IASC Board approved the report the same year before been
presented to members in 2000 for approval. The approval of the report led to
the release of IASB Constitution which was to take effect from 1st of
July, 2000.
This was the end of IASC
and the beginning of the rebirth foundation named IASC Foundation and now IFRS
Foundation. In 2001, the foundation set up the International Accounting
Standards Board (NASB), saddled with the responsibilities of producing
accounting standards and to ensure the independence of the organ and smooth
running of its activities, The Trustee was set up for safeguarding and funding
of IASB.
Standards Released by IASB
Under the defunct IASC, the
standards released are called International Accounting Standard (IAS) while
after the new body was formed, the standards released are called International
Financial Reporting Standard (IFRS). Under IASC, forty-one (41) standards
ranging from IAS 1 to IAS 41 were released but today, most of these standards
have been replaced by IFRS. As at today, the IASB has released seventeen
standards ranging from IFRS 1 to IFRS 17.
These standards and
all other IFRS standards are subjected to review, revision, withdrawal, or
replacement when the need arises. As at 2021, fourteen (14) IAS standards have
been replaced, reducing the number of standards issued under the defunct IASC
from forty-one (41) to twenty-seven (27) as contained below:
1. IAS 1
Presentation of financial statements
2. IAS 2
Inventories
3. IAS 7
Statement of cash flows
4. IAS 8
Accounting policies, changes in
accounting estimates, and errors
5. IAS 10
Events after the reporting period
6. IAS 11
Construction contracts
7. IAS 12
Income taxes
8. IAS 16
Property, plant and equipment
9. IAS 17
Leases
10. IAS 18 Revenue
11. IAS 19 Employee benefits
12. IAS 20 Accounting for government grants
and disclosure of government assistance
13. IAS 21 The effects of changes
in foreign exchange rates
14. IAS 23 Borrowing costs
15. IAS 24 Related party
disclosures
16. IAS 26 Accounting and reporting
by retirement benefit plans
17. IAS 27 Consolidated and
separate financial statements
18. IAS 28 Investments in
associates and joint ventures
19. IAS 29 Financial reporting in
hyperinflationary economies
20. IAS 32 Financial instruments:
presentation
21. IAS 33 Earnings per share
22. IAS 34 Interim financial
reporting
23. IAS 36 Impairment of assets
24. IAS 37 Provisions, contingent
liabilities and contingent assets
25. IAS 38 Intangible assets
26. IAS 39 Financial instruments:
recognition and measurement
27. IAS
40 Investment
property
28. IAS 41 Agriculture
Replaced IAS
1. IAS 3 Consolidated financial statements is replaced
with IAS 27 and IAS 28
2. IAS 4
Depreciation accounting has been replaced with IAS 16, IAS 22 and IAS 23
3.
IAS 5 Information to be disclosed
in financial statement is replaced with IAS 1
4. IAS 6
Accounting response to changing prices was replaced with IAS 15 before
withdrawn later
5. IAS 9 Research and development costs is replaced with
IAS 38
6.
IAS 13 Presentation of current assets and
current liabilities is replaced with IAS 1AS 1
7. IAS 14 Reporting financial information by segment is superseded by
IFRS 8
8.
IAS 15 Information reflecting the effect of
changing prices has been withdrawn.
9. IAS 22 Business combination is replaced with IFRS 3
10. IAS 25 Accounting for inventor investment has been withdrawn
11. IAS 30 Disclosures in
the financial statements of banks and similar financial institutions is
replaced with IFRS 7
12. IAS 31 Financial
reporting of interest in joint venture is replaced with IFRS 11 and IFRS 12
13. IAS 35 Discontinuing operations is replaced with IFRS 5
List of IFRS Standard
The following are the list
of IFRS standards as at 2021:
1. IFRS 1 First-time adoption of
International Financial Reporting Standards
2. IFRS 2 Share-based payment
3. IFRS 3 Business combinations
4. IFRS 4 Insurance contracts
5.
IFRS 5
Non-current assets held for sale and discontinued operations
6. IFRS 6 Exploration for and evaluation of
mineral resources
7. IFRS 7 Financial instruments: disclosures
8. IFRS 8 Operating segments
9. IFRS
9 Financial
instruments
10. IFRS 10 Consolidated financial statements
11. IFRS
11 Joint arrangements
12. IFRS
12 Disclosure of interests
in other entities
13. IFRS 13 Fair value measurement
14. IFRS 14 Regulatory deferral accounts
15. IFRS 15 Revenues from contracts with customers
16. IFRS
16 Leases
17. IFRS
17 Insurance Contract
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