What is the difference between IFRS and IAS
International Financial Reporting Standards (IFRS) and International Accounting Standards (IAS) are both sets of accounting principles developed by the International Accounting Standards Board (IASB) to provide a common framework for financial reporting by companies worldwide.
The difference between IFRS and IAS lies mainly in the development and issuance of these standards.
IAS:
1. IAS refers to the older set of accounting standards that were developed by the International Accounting Standards Committee (IASC) from 1973 to 2000.
2. The body that created and issued IAS was the IASC, which was later reconstituted into the IASB in 2001.
3. IAS standards are now considered to be part of the overall IFRS framework, but they are still named using the "IAS" designation.
4. In total, 41 IAS were issued, of which 29 are still active, while others have been superseded or replaced by IFRS.
IFRS:
1. IFRS refers to the newer set of accounting standards that were developed and issued by the IASB since its establishment in 2001.
2. The body responsible for creating and issuing IFRS is the IASB.
3. IFRS represents the current and updated version of accounting standards, incorporating the earlier IAS while adding new and revised standards.
4. IFRS are aimed at improving the global consistency, comparability, and quality of financial reporting, taking into account the changes in the global business environment.
In summary, the main difference between IFRS and IAS is the period and the organization responsible for their issuance - the IASB currently issues IFRS, while the older IAS were issued by the IASC. However, all IAS and IFRS are now considered part of the same overall financial reporting framework under the IASB's guidance.