The Differences between IAS and IFRS are given here. Both terms are different but can be easily confused when representing apparently similar concepts.
Known as International Accounting Standards. It establishes that since 2005 the consolidated annual accounts prepared by companies that have values admitted in negotiations on a regulated market. These accounts are formulated according to international accounting standards adopted by the European Union.
Its objective is to avoid the existence of duality in the financial statements of Spanish companies. Increases the transparency and comparability of accounts between companies in the European Union.
It establishes a standard in the information in which the financial statements are presented and the way in which the information should appear in the financial statements. They are not physical laws but necessary according to commercial experiences. They are high-quality accounting standards specifically geared toward investors to reflect the economic essence of business operations. It presents a picture of the financial situation of a company.
Known as International Financial Reporting Standards (IFRS) they are technical accounting standards adopted by the IASB, a private institution based in London. These are International Standards in the development of accounting activity and represent a manual on how to review accounting in an acceptable way to the world.
They are used in various parts of the world and since March 28, 2008, 75 countries made the use of IFRS mandatory.
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Differences between IAS and IFRS
- IAS are standards of the financial statements of the European Union. They are usually applied by those organizations and companies in negotiations between the countries that make up Europe. They are not mandatory but they are necessary for commercial relationships.
- IFRS are international standards adopted by various countries for the presentation of the financial statements of their companies. These are standards adopted by more than 75 species.