International Financial Reporting Standards

Driven by the need for greater transparency and comparability among companies in a global economy, International Financial Reporting Standards (IFRS) are increasingly gaining momentum. They are fast becoming the prevailing global standards for financial reporting — more than 100 countries worldwide already require, allow or are in the process of converting to IFRS. For companies, however, the conversion to IFRS is a major change both for the finance function and for the wider business.

The Grant Thornton International IFRS team and member firm IFRS experts have gained extensive insights into the more problematic aspects of IFRS implementation and have developed general guidance documents to support its member firms’ commitment to high quality and consistent application of IFRS. Grant Thornton is therefore pleased to share these insights by regularly publishing guides to explain the key implementation issues and to provide interpretational guidance in the more problematic areas.

To find out more details about each publication and to access the guides, please click on the links below.

IFRS News
IFRS News is a quarterly newsletter which offers a high level summary of the more significant developments in International Financial Reporting Standards (IFRS) along with insights into topical issues with comments and views from Grant Thornton International.

In addition, special editions are sometimes produced on particular matters of interest, such as the International Financial Reporting Standard for Small and Medium-sized Entities (IFRS for SMEs). The IFRS for SMEs is a simplified version of full IFRS aimed at the needs of privately held businesses, and has the potential to harmonise financial reporting by private companies across the world.

IFRS Top 20 Tracker - 2010
Issued by Grant Thornton International Ltd, the IFRS Top 20 Tracker identifies 20 leading disclosure and accounting issues companies have been encountering when preparing their IFRS financial statements.

Many companies underestimate the extent and complexity of IFRS. This document is meant to provide management with a heads up so they can plan appropriately and file their statements in a timely manner.

IFRS 1
The International Accounting Standards Board (IASB) has recognised the need for guidance. This guide entitled 'The Road to IFRS - A practical guide to applying IFRS 1 and first-time adoption' is intended to assist companies in applying the challenging aspects of IFRS 1. For companies, the conversion to IFRS is a major change both for the finance function and for the wider business.

In planning the conversion, management must develop a detailed and specific understanding of IFRS 1's implications on their business. This guide explains IFRS 1's key implementation issues and includes interpretational guidance in the more problematic areas.

IFRS 3
The revised version of International Financial Reporting Standard: IFRS 3 Business Combinations, published by the International Accounting Standards Board (IASB) in January 2008, has drawn renewed attention to a complex and developing area of financial reporting.

This guide is intended to assist companies in applying IFRS 3.

IFRS 5
Discontinuing a business operation or deciding to sell a major asset are important commercial events. The impact of these events and the way in which they are reported is the subject of a specific International Financial Reporting Standard: IFRS 5 Non-current Assets Held for Sale and Discontinued Operations.

This guide explains IFRS 5's key implementation issues and common approaches to practical application.

IFRS 8
Issued by Grant Thornton International Ltd, the guide, Operating Segments - Applying IFRS 8 in Practice, explains IFRS 8's key implementation issues and includes interpretational guidance in certain problematic areas.

The guide also includes several examples illustrating the Standard's requirements.

Financial Instruments - a Chief Financial Officer's guide to avoiding the traps
This guide is intended for Chief Financial Officers (CFOs) of businesses that prepare financial statements under IFRS. It summarises the impact of IAS 39 Financial Instruments: Recognition and Measurement together with relevant parts of IAS 32 Financial Instruments: Presentation.

It highlights the main challenges that businesses typically encounter in order to help CFOs to prioritise and identify key issues. The guide will help a CFO to understand potential problem areas in order to know when to consult further.

Capitalisation of borrowing costs - from theory to practice
This guide is intended to assist companies and auditors in applying IAS 23 (revised), which was issued by the IASB in March 2007. The previous benchmark treatment of recognising borrowing costs as an expense has been removed.

Instead, borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset will form part of the cost of that asset under the new standard.