International Financial Reporting Standards ("IFRS")

The International Financial Reporting Standards (the “IFRS”) used to be known as International Accounting Standards (the “IAS”) has been issued by the IASB. In 2003, IASB issued a standard on transition to IFRS. Standards after this period will have the designation of IFRS instead of IAS. Previously released IAS standards will maintain their original designation.

IFRS determines the recognition, measurement, presentation, and disclosure requirements for transactions and events that are important in general purpose financial statements and in specific industries such as agriculture, and insurance [1] .

IFRS is currently applied in many countries. Since 2005, companies listed on EU exchanges are required to comply with IFRS for their group financial statements. These companies have an option to extend the IFRS requirements to unlisted companies and parent company accounts.

Followings are the list of standards that are issued so far:

1. IFRS 1 First time adoption of International Financial Reporting Standards (June 2003)

2. IFRS 2 Share-based payment

3. IFRS 3 Business Combination s (replacing IAS 22 Business Combinations effective 31 March 2004)

4. IFRS 4 Insurance contracts

5. IFRS 5 Non-current assets held for sale and discontinued operations

6. IAS 1Presentation of Financial Statements

7. IAS 2 Inventories

8. IAS 7 Cash Flow Statements

9. IAS 8 Net Profit or Loss for the Period, Fundamental Errors and Changes in Accounting Policies

10. IAS 10 Events after the Balance Sheet date

11. IAS 11 Construction Contracts

12. IAS 12 Income Tax es

13. IAS 14 Segment Reporting

14. IAS 16 Property, Plant and Equipment

15. IAS 17 Leases

16. IAS 18 Revenues

17. IAS 19 Employee Benefits

18. IAS 20 Accounting for Government Grants and Disclosure of Government Assistance

19. IAS 21 The Effects of Changes in Foreign Exchange Rates

20. IAS 23 Borrowing Cost s

21. IAS 24 Related Party Disclosures

22. IAS 26 Accounting and Reporting by Retirement Benefits Plans

23. IAS 27 Consolidated Financial Statements

24. IAS 28 Investments in Associates

25. IAS 29Financial Reporting in Hyperinflation ary Economies

26. IAS 30Disclosures in the Financial Statements of Banks and Similar Financial Institutions

27. IAS 31Financial Reporting of Interests in Joint Ventures

28. IAS 32Financial Instruments : Disclosure and Presentation

29. IAS 33Earnings Per Share

30. IAS 34 Interim Financial Reporting

31. IAS 36Impairment of Assets

32. IAS 37Provisions, Contingent Liabilities and Contingent Assets

33. IAS 38Intangible Assets

34. IAS 39Financial Instruments : Recognition and Measurement

35. IAS 40Investment Property

36. IAS 41Agriculture

Besides the standards, there are a number of interpretations for certain standards. The below is the interpretations have been issued so far:

1. SIC 7 Introduction of the Euro

2. SIC 10 Government Assistance - No specific relation to operating activities

3. SIC 12 Consolidation - Special Purpose Entities

4. SIC 13 Jointly Controlled Entities - Non-Monetary Contributions by Ventures

5. SIC 15 Operating Leases - Incentives

6. SIC 21 Income Tax es - Recovery of Revalued Non-Depreciable Assets

7. SIC 25 Income Tax es - Changes in the Tax Status of an Enterprise or its shareholders

8. SIC 27 Evaluating the Substance of Transactions Involving the legal form of a lease

9. SIC 29 Disclosure - Service Concession Arrangements

10. SIC 31 Revenue - Barter Transactions Involving Advertising Services

11. SIC 32 Intangible assets - Web site costs