I want to know the difference between IFRS and IAS. As, there are IAS 1 to 41 standards already existing then why IFRS 1 to 8 was developed.
Secondly, are these two standards working parallel to each other or IAS is abondoned and now IFRS is working?
If someone could please guide me.Well I am “sorry” to ask a basis question from honourable members.
See this link for the first question,
The second Q: yes they are parallel, as long as an IAS is not replaced by an IFRS it remains valid. Companies also tend to refer to ‘complying with IFRS and IAS’ but also only ‘ complying with IFRS’.
And by the way, there are no stupid questions, not asking is stupid,
I have lifted some part of the preface to IFRS…
“The International Accounting Standards Board (IASB) started operations in April 2001 as
the successor to the International Accounting Standards Committee (IASC). The IASB is the
standard-setting body of the IASC Foundation.
The IASB was preceded by the Board of IASC, which came into existence on 29 June 1973 as a result of an agreement by
professional accountancy bodies in Australia, Canada, France, Germany, Japan, Mexico, the Netherlands, the United Kingdom and
Ireland, and the United States of America. A revised Agreement and Constitution were signed in November 1982.
The Constitution was further revised in October 1992 and May 2000 by the IASC Board. Under the May 2000 Constitution,
the professional accountancy bodies adopted a mechanism enabling the appointed Trustees to put the May 2000 Constitution into force.
The Trustees activated the new Constitution in January 2001, and revised it in March 2002.
All Standards and Interpretations issued under previous Constitutions continue to be applicable unless and until they are amended or withdrawn.
The International Accounting Standards Board may amend or withdraw International Accounting Standards and
SIC Interpretations issued under previous Constitutions of IASC as well as issue new Standards and Interpretations.
International Financial Reporting Standards (IFRSs) is the term used to indicate the whole body of IASB authoritative literature; and includes:
• IFRSs issued by the IASB;
• International Accounting Standards (IASs) issued by the IASC, or revisions thereof issued by the IASB;
• Interpretations of IFRSs and IASs developed by the IFRIC and approved for issue by the IASB; and
• Interpretations of IASs developed by the SIC and approved for issue by the IASB or IASC. “