- Let’s understand the difference between IAS and IFRS. IAS stands for International Accounting Standards, and IFRS stands for International Financial Reporting Standards.
- IASB (International Accounting Standards Board) issues Accounting standards known as IAS (International Accounting Standards).
In this article, we will talk more about both IAS and IFRS. IAS started in 1966 proposed to enact the ICAEW, CICA and the AICPA for England and Wales, Canada and USA respectively. As a consequence, the Accounts International Study Group was founded in 1967 that focused on change by publishing papers on topics with significance. Due to these papers, in 1973 an agreement was reached so that an international body that has the sole purpose of writing accounting standards is used internationally.
The IASC (International Accounting Standards Committee) was established in 1973 that was mandated with releasing new international standards, with a vision of rapid acceptance and worldwide implementation. In the year 2001, ISAC was restructured and became the International Accounting Standards Board (IASB).
From the year 1973 to 2000, a series of accounting standards were released by the IASC known as the International Accounting Standards and they were ordered numerically. IAS 1 was the first in the series and it concluded with IAS 41. During the establishment of IASB, the set of standards issued by the IASC, i.e. IAS 1 to 41 were adopted and any standards that will be published afterwards would follow a series known as the International Financial Reporting Standards (IFRS).
The Difference between IAS and IFRS:
Differences between the two have arisen quite a few times by accounting experts and some actually question whether there is any difference at all. One major difference is that the series of accounting standards were published by the IASC between 1973 and 2001 and the standards for the IFRS published by the IASB were starting from 2001. During the formation of IASB in 2001, it was agreed to adopt all the IAS standards and the future standards as IFRS. One major point that is worth noting is that the principles within IFRS that may be contradictory, will supersede those of the IAS. When contradictory standards are issued, older standards are disregarded.
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