Financial Management
Financial Management
Topic 1:
International Financial Reporting Standards
(IFRS)
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Financial Management
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Development of IFRS
International Accounting Standards Board (IASB)
Independent standards-setting board overseen by
the IFRS Foundation.
Sets the IFRSs
IFRS Foundation
Independent organisation that aims to:
...to develop a single set of high quality, understandable,
enforceable and globally accepted IFRSs...
(IFRS Foundation, 2011)
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Background to IFRS
Countries used to follow their own national or local
accounting rules.
- UK GAAP (Generally Accepted Accounting Practices)
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Financial Management
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Australia
Canada
European
p
Union
Hong Kong
South Africa
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Companies listed on UK
stock exchange
Non-listed companies.
Small companies.
Financial Management
IFRS
Statement of financial
position
Income statement
Statement
S
off cash
h flows
fl
Non-current assets
Inventory
Receivables
Payables
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Financial Management
Income Statement
Equivalent to profit and loss account
Shown as part of a larger statement of
comprehensive income
No specified format but IAS 1 states the minimum
information to be presented should include:
Revenue
Finance costs
Tax expenses
Profit or loss
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Financial Management
Summary
In this lecture we have looked at:
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References
IFRS Foundation (2011) About the IFRS
Foundation and the IASB. Available at:
http://www.ifrs.org/The+organisation/IASCF+and+IA
SB.htm [Accessed 14.02.2011]
McLaney, E. and Atrill, P. (2010) Accounting: An
Introduction, 5th Edition. Harlow, England: FT
Prentice Hall.
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Financial Management
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