Let's meet the standards!

Hi everyone!
Its time to finally meet the standards.

Let's consider this: Apart from the constitution, we have several decrees on different areas of the nation such as: health, education, agriculture etc. Undoubtedly, these decrees are specific to the areas for which they were promulgated.

Likewise, we have several standards covering different areas, ranging from non-current assets to revenue to financial instruments etc. The IAS's are 28 in number while the IFRS's are 16 (including IFRS for SME's).

The IAS's:
IAS 1 - Presentation of Financial Statements
IAS 2 - Inventories
IAS 7 - Cashflow Statement
IAS 8 - Accounting Policies, Changes in accounting Estimates and Errors
IAS 10 - Events after the Reporting Period
IAS 11 - Construction Contract
IAS 12 - Income Taxes
IAS 16 - Property, Plant & Equipment
IAS 17 - Leases
IAS 18 - Revenue Recognition
IAS 19 - Employee Benefits
IAS 20 - Accounting for Government Grants & Disclosure of Government Assistance
IAS 21 - The Effects of Changes in Foreign Exchange Rates
IAS 23 - Borrowing Costs
IAS 24 - Related Party Disclosures
IAS 26 - Accounting & Reporting for Retirement Benefit Plans
IAS 27 - Separate Financial Statements
IAS 28 - Accounting for Investments in Associates & Joint Venture
IAS 29 - Financial Reporting in Hyperinflationary Economies
IAS 32 - Financial Instruments: Presentation
IAS 33 - Earnings Per Share
IAS 34 - Interim Financial Reporting
IAS 36 - Impairment of Assets
IAS 37: Provisions, Contingent Liabilities & Contingent Assets
IAS 38: Intangible Assets
IAS 39: Financial Instruments: Recognition & Measurement (to be replaced by IFRS 9)
IAS 40: Investment Property
IAS 41: Agriculture

The IFRS's:
IFRS 1 - First time Adoption of IFRS
IFRS 2 - Share based payment
IFRS 3 - Business Combination
IFRS 4 - Insurance Contract
IFRS 5 - Non Current assets held for sale & discontinued operations
IFRS 6 - Exploration for and Evaluation of mineral resources
IFRS 7 - Financial Instruments: Disclosure
IFRS 8 - Operating Segments
IFRS 9 - Financial Instruments
IFRS 10 - Consolidated Financial Statements
IFRS 11 - Joint Arrangements
IFRS 12 - Disclosure of interests in other entities
IFRS 13 - Fair Value Measurement
IFRS 14 - Regulatory Deferral Accounts
IFRS 15 - Revenue from contract with customers
IFRS for SME's

However, Nigeria still makes use of 3 of its local standards (Statement of Accounting Standard) since there are no IFRS's covering these areas yet. They are:

SAS 14: Accounting in the petroleum industry: Downstream activities
SAS 17: Accounting in the petroleum industry: Upstream activities
SAS 25: Telecommunication activities


These standards are published by the International Accounting Standard Board (IASB) whilst the local standards are published by Financial Reporting Council of Nigeria (FRCN) formerly NASB (Nigerian Accounting Standards Board).

DAILY CHALLENGE: Memorize at least 15 standards.

Have a nice day!

Arguments for and against Accounting Standards

Hi guys,

How is your day going?

We previously examined the basic idea behind accounting standards. So we shall continue with the arguments for and against.

FOR:

The major argument is harmonization and uniformity in financial reporting. All financial statements reported using the IAS and IFRS would be stated in the same manner, format and content regardless of country or continent. As a result, these different financial statements can be easily compared against themselves, to monitor performance and trends. Just like in the previous scenario, we can easily determine the start and finish points of the 100, 200 and 400m tracks and further determine who comes first, second and third on the races, since there is a standard metric rule.

Basic Introduction to Accounting Standards

Hi guys,
Sorry for the break.

We shall be studying accounting standards today!

Let's start with this scenario. There is an inter-country race involving over 50 countries. In preparation for the race, each country was asked to send over its own representative to prepare the track, stadium and other necessaries. In the course of this, a problem started. The different countries had different measurements, hence there was serious difficulty determining 100m, 200m and 400m. For the Japanese, 50 straight bamboo sticks equaled 100m; whilst 100 leg strides equaled 100m. For the Nigerians', 20 big palm fronds represented 100m. This led to a serious disagreement amongst the countries, and there was no harmony in measurement.

However, someone suggested the use of metric rule, which clearly marked 100m, 200m and 400m and it was accepted by all. Hence, solving the problem.

Welcome Note!

Hi guys,

You are welcome to this blog!

We love, teach, discuss and share knowledge on everything accounting related.

Best Regards,
The Accounting Awareness Team.