14.Write the distinguish between IAS and IFRS.
IAS (International Accounting Standards) are the older set of accounting rules issued before 2001, whereas IFRS (International Financial Reporting Standards) are the updated, modern standards issued after 2001. Both are part of a single, globally recognized accounting framework, with IFRS gradually superseding and updating the original IAS. [1, 2, 3, 4]
The main distinctions between the two can be understood through their history, governing bodies, and approach to accounting: [2, 5, 6]
| Feature [1, 5, 7, 8] | International Accounting Standards (IAS) | International Financial Reporting Standards (IFRS) |
| Issuing Body | International Accounting Standards Committee (IASC) | International Accounting Standards Board (IASB) |
| Active Period | Issued between 1973 and 2001 | Issued from 2001 to the present |
| Approach | More prescriptive and rules-based | Principles-based, focusing on economic substance and judgment |
| Current Status | Older standards still in force, provided they have not been replaced | The contemporary standard; when a new IFRS is issued, it generally supersedes the older IAS |
Practical Relationship
Rather than being mutually exclusive, IAS and IFRS work together as one cohesive body of standards. When the IASB was formed in 2001, it adopted all existing IAS rules. Since then, any new accounting standard is released under the IFRS banner. [1, 2, 3, 9]
For example:
- Still Valid IAS: Foundational standards like IAS 1 (Presentation of Financial Statements) and IAS 16 (Property, Plant, and Equipment) are still widely used because they have not been completely replaced.
- Replaced IAS: IAS 17 (Leases) was replaced by the newer and more comprehensive IFRS 16. [7, 10, 11]
To explore the exact standards in force, you can review the official IFRS Foundation portal, which manages both sets of frameworks. [9, 12]
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