IPSASList of Interpretations (IFRIC)
IFRIC 1:- Changes in Existing Decommissioning, Restoration and Similar Liabilities
IFRIC 2:- Members’ Shares in Co-operative Entities and Similar Instruments
IFRIC 5 :- Rights to Interests arising from Decommissioning, Restoration and Environmental Rehabilitation Funds
IFRIC 6:- Liabilities arising from Participating in a Specific Market-Waste Electrical and Electronic Equipment
IFRIC 7:- Applying the Restatement Approach under IAS 29 Financial Reporting in Hyperinflationary Economies
IFRIC 10 :- Interim Financial Reporting and Impairment
IFRIC 14 :-The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction
IFRIC 16 :- Hedges of a Net Investment in a Foreign Operation
IFRIC 17 :- Distributions of Non-cash Assets to Owners
IFRIC 19:- Extinguishing Financial Liabilities with Equity Instruments
IFRIC 20:- Stripping Costs in the Production Phase of a Surface Mine
IFRIC 21:- Levies
IFRIC 22:- Foreign Currency Transactions and Advance Consideration
IFRIC 23:- Uncertainty over Income Tax Treatments
IFRS Standards
Full IFRS, IFRS for SMEs, IPSAS
Full IFRS
Designed for entities having Public Interest Entities/ Public Accountability and profit oriented
General purpose f/stts which is the common information needs of a wide range of users,
Public interest entities
Securities publicly quoted on capital market
Financial Institutions (banks, credit unions, insurance companies, securities brokers/dealers, mutual funds and investment banks)
Holds assets in a fiduciary capacity for a broad group
Other public interest entities (quantitative threshold meet)
Other Public Interest
Quantitative threshold Based on the Size of Entity & Number of Employees
Reporting entity which meets at least two
Annual revenue Birr 300 million
Total asset is Birr Birr 200 million
Total liability is Birr Birr 200 million
Number of employees is 200
IAS 1973-2000 24
SIC Standing Interpretation Committee 5
IFRS 2001 16
IFRIC IFRS Interpretation Committee14
Total standards 59
Has conceptual framework 8 chapter
IFRS for SMEs
IFRS for Small & Medium Sized Entities.
Do not have public accountability; and
(b) Publish general purpose financial statements (directed towards the common information needs of a wide range of users) for external users.
SMEs are profit oriented entities
Entity that are not meet quantitative thresholds of other public interest entity
It is based on full IFRS with modifications to reflect the needs of users of SMEs’ financial statements.
Undue cost or effort--- the benefit should exceed from the incremental cost /effort & cost-benefit considerations
SME definition national definitions include quantified criteria based on revenue, assets, employees or other factors.
Only 1 standard with 35 sections.
Criteria to Classify SMEs
A Reporting Entity which meets at least two
Annual revenue is Birr 50million - 300million;
Total asset is Birr 50million -200million;
Total liability is Birr 50million -200million;
Number of employees is 50 -200.
IPSAS
The IPSASB develops accounting standards & guidance for use by public sector entities.
The structures & processes that support the operations of the IPSASB are facilitated by the International Federation of Accountants (IFAC) global voice for the accountancy profession.
Applicable for Charities & Societies (NGOs) and Government organizations
The IPSASB issues IPSAS dealing with financial reporting under the cash & accrual basis of accounting
The accrual IPSASs are based on the IFRS, issued by the IASB
Modified accrual base
If they are engaged in business they can apply IFRS like IFRS 15 of IFRS standards
Conceptual framework for IPSASB (8 Chapter)
IASB Books
IASB publishes 3 book every year.
Each book published 2 volume
1. Red book (IFRS Standards):- contain all IFSR standards & exclude the withdrawn and issued at January 1
2.Blue book (Required IFRS Standards):- contain only standards which become effective by January 1st of that particular year
3. Green book (Annotated IFRS Standards):- includes the full text of the Standards and Interpretations which issued by July 1st .