IFRS Accounting Standards

Start with

• What is IFRS? A plain-English introduction4 minute readWhat IFRS Accounting Standards are, who sets them, how a standard is made, who must use them, and how they differ from local GAAP, with a worked example.
• Every IFRS and IAS explained in one line4 minute readThe full list of IFRS Accounting Standards in force: IFRS 1 to IFRS 19 and the remaining IAS, each explained in one line, with what replaces what from 2027.
• How to read an accounting standard4 minute readHow an IFRS standard and a US GAAP topic are structured, which parts are authoritative, how paragraph references work, and a method for reading any standard.
• IFRS vs US GAAP: the key differences in one guide4 minute readThe key differences between IFRS and US GAAP: inventory, property, impairment, development costs, leases, credit losses and provisions, with a worked example.

Standards covered in depth

IFRS 18 guides

• IFRS 18 explained: what changes and when2 minute readIFRS 18 replaces IAS 1 for periods beginning on or after 1 January 2027. See what changes in the income statement, the new subtotals and who is affected.
• IFRS 18 vs IAS 1: the differences that matter2 minute readIFRS 18 vs IAS 1 compared: the new income statement categories, required subtotals, MPM disclosures, aggregation rules and cash flow changes, with an example.
• IFRS 18 income statement categories: operating, investing and financing2 minute readThe five IFRS 18 income statement categories explained: what goes in operating, investing and financing, the two new subtotals, and a worked example.
• Operating profit under IFRS 18: what is in and what is out2 minute readHow IFRS 18 defines operating profit: a residual category that includes unusual items but excludes associates, interest and returns on investments.
• IFRS 18 main business activities: banks, insurers and property companies2 minute readHow IFRS 18 treats companies whose main business is investing in assets or lending to customers, such as banks, insurers and property companies.
• Management-defined performance measures (MPMs) under IFRS 182 minute readWhat counts as a management-defined performance measure under IFRS 18, what is excluded, and how to build the reconciliation note, with an example.
• IFRS 18 aggregation and disaggregation: grouping items and the end of "other"2 minute readIFRS 18 rules on grouping items: when to combine or split, limits on the label other, and the note of five expenses by nature for function-based statements.
• IFRS 18: where foreign exchange differences and derivatives go2 minute readUnder IFRS 18, exchange differences follow the item that caused them, and derivative gains follow the risk they manage. See the rules and worked examples.
• IFRS 18 and the cash flow statement: the IAS 7 changes2 minute readIFRS 18 amends IAS 7: the indirect method starts from operating profit, and the choices for classifying interest and dividends are removed. See an example.
• IFRS 18 transition: dates, restated comparatives and the reconciliation2 minute readHow to move to IFRS 18: the effective date, retrospective application, restating the comparative year, and the line-by-line reconciliation required.
• IFRS 18 worked example: a telecom income statement before and after3 minute readA full IFRS 18 worked example: a telecom company's income statement under IAS 1 and restated under IFRS 18, line by line, with the new subtotals.
• IFRS 18 implementation checklist: what to do and in what order3 minute readA practical IFRS 18 implementation checklist: classify accounts, review performance measures, update systems, restate comparatives and brief stakeholders.

IFRS 16 guides

• IFRS 16 leases explained3 minute readIFRS 16 explained: lessees put almost every lease on the balance sheet as a right-of-use asset and liability, with the exemptions and the effect on the numbers.
• IFRS 16 lessee accounting step by step3 minute readIFRS 16 lessee accounting step by step: measuring the lease liability and right-of-use asset, the schedule and journal entries, with a full worked example.
• Is it a lease? The IFRS 16 identification test3 minute readHow to tell whether a contract contains a lease under IFRS 16: the identified asset, substitution rights, economic benefits and direction of use, with examples.
• Lease term, extension and termination options under IFRS 163 minute readHow to set the lease term under IFRS 16: the non-cancellable period, options reasonably certain to be used, the factors to weigh and reassessment.
• The IFRS 16 discount rate: incremental borrowing rate3 minute readHow to choose the IFRS 16 discount rate: the rate implicit in the lease, the incremental borrowing rate, how to build it up, and its effect on the liability.
• Short-term and low-value lease exemptions under IFRS 163 minute readThe two optional IFRS 16 exemptions for lessees: short-term leases of 12 months or less and leases of low-value assets, how to apply them, and what to disclose.
• Lease modifications under IFRS 163 minute readHow IFRS 16 treats lease modifications: when a change is a separate lease, how to remeasure the liability and adjust the asset, and decreases in scope.
• Sale and leaseback under IFRS 163 minute readHow IFRS 16 accounts for a sale and leaseback: whether the transfer is a sale, the right-of-use asset, the partial gain, off-market terms and failed sales.
• Lessor accounting under IFRS 16: finance and operating leases3 minute readHow lessors account for leases under IFRS 16: classifying finance and operating leases, the net investment in the lease, rental income, with examples.
• IFRS 16 disclosure checklist3 minute readWhat IFRS 16 requires lessees and lessors to disclose: right-of-use assets, lease expenses, cash outflows, maturity analyses and qualitative information.

IAS 12 guides

• IAS 12 income taxes explained3 minute readIAS 12 income taxes explained: current tax, deferred tax, temporary differences, tax expense in profit or OCI, and the tax rate reconciliation, with an example.
• Deferred tax liabilities and assets with examples3 minute readDeferred tax explained with a calculation example: how a deferred tax liability arises from accelerated tax depreciation, builds up and reverses, under IAS 12.
• Temporary differences and tax base under IAS 123 minute readHow to find temporary differences under IAS 12: the tax base of assets and liabilities, taxable vs deductible differences, permanent differences and examples.
• Recognising deferred tax assets and tax losses3 minute readWhen IAS 12 allows recognition of deferred tax assets: probable taxable profit, unused tax losses carried forward, convincing evidence and reassessment.
• IFRIC 23 uncertain tax treatments3 minute readIFRIC 23 explained: how to account for uncertain tax treatments, the probable acceptance test, most likely amount vs expected value, and detection risk.
• Pillar Two global minimum tax and IAS 123 minute readPillar Two and IAS 12: the 15% global minimum tax, the temporary exception from deferred tax, top-up tax as current tax and the 2026 side-by-side package.

IAS 36 guides

• IAS 36 impairment of assets explained3 minute readIAS 36 impairment of assets explained: indicators, recoverable amount, value in use and fair value less costs of disposal, impairment losses and reversals.
• Calculating value in use3 minute readHow to do a value in use calculation under IAS 36: cash flow projections, the pre-tax discount rate, terminal value and sensitivity, with a worked example.
• Cash-generating units and corporate assets3 minute readHow to identify a cash-generating unit under IAS 36: independent cash inflows, active markets, corporate assets and examples from retail and transport.
• Goodwill impairment testing3 minute readHow the IAS 36 goodwill impairment test works: allocating goodwill to cash-generating units, the annual test, allocating losses and non-controlling interests.
• Reversing an impairment loss3 minute readWhen IAS 36 allows the reversal of an impairment loss: indicators, the cap at depreciated historical cost, goodwill, revalued assets, with a worked example.

IAS 16 guides

• IAS 16 property, plant and equipment explained3 minute readIAS 16 property, plant and equipment explained: recognition, what goes into cost, depreciation, the cost and revaluation models, and derecognition.
• Depreciation methods, useful life and residual value3 minute readDepreciation methods under IAS 16 compared with an example: straight-line, reducing balance and units of production, plus useful life and residual value.
• Component depreciation3 minute readComponent depreciation under IAS 16 explained: identifying significant parts, major inspections, replacing parts, with an aircraft componentisation example.
• The revaluation model and revaluation surplus3 minute readThe IAS 16 revaluation model explained: revaluing to fair value, the revaluation surplus in OCI, journal entries, depreciation after revaluation and decreases.
• Decommissioning and restoration costs3 minute readHow decommissioning costs are accounted for under IAS 16 and IAS 37: adding the present value to the asset, unwinding of the discount and IFRIC 1 changes.

IAS 2 guides

• IAS 2 inventories explained3 minute readIAS 2 inventories explained: what goes into the cost of inventories, conversion costs and overheads, cost formulas, net realisable value and write-downs.
• Cost formulas: FIFO and weighted average3 minute readFIFO vs weighted average cost under IAS 2 with a worked example: cost of sales, closing inventory and gross profit, how LIFO compares, and which to choose.
• Net realisable value and inventory write-downs3 minute readNet realisable value under IAS 2: how to calculate NRV, when inventory must be written down, item by item or in groups, and reversing write-downs.

IAS 7 guides

• IAS 7 statement of cash flows explained3 minute readIAS 7 statement of cash flows explained: cash and cash equivalents, operating, investing and financing activities, direct and indirect methods, with an example.
• The indirect method step by step3 minute readHow to prepare cash flow from operating activities using the indirect method: non-cash items, working capital changes and taxes, with a worked example.
• Supplier finance arrangements3 minute readSupplier finance arrangements and reverse factoring under IAS 7 and IFRS 7: the 2024 disclosure requirements, presentation of payables and cash flows.

IAS 37 guides

• IAS 37 provisions explained3 minute readIAS 37 provisions explained: present obligation, probable outflow and reliable estimate, best estimate, expected value, discounting, and contingent liabilities.
• Onerous contracts3 minute readOnerous contracts under IAS 37: unavoidable costs, the cost of fulfilling a contract after the 2022 amendments, exit penalties and impairment, with an example.

IFRS 9 guides

• IFRS 9 financial instruments explained3 minute readIFRS 9 explained: classification and measurement of financial assets and liabilities, expected credit losses and hedge accounting, and what changed from IAS 39.
• Classification and measurement under IFRS 9: business model and SPPI3 minute readHow IFRS 9 classifies financial assets: the business model test, the SPPI test, the three measurement categories, equity elections and the fair value option.
• Amortised cost and the effective interest method under IFRS 93 minute readHow the effective interest method works under IFRS 9: calculating the effective interest rate with fees and transaction costs, and the amortised cost schedule.
• Expected credit losses under IFRS 9: the three stages3 minute readExpected credit loss under IFRS 9 explained: the three stages, 12-month and lifetime ECL, significant increase in credit risk, PD, LGD and EAD, with an example.
• The simplified approach: a provision matrix for receivables3 minute readHow to build an IFRS 9 provision matrix for trade receivables under the simplified approach: historical loss rates, forward-looking adjustments and an example.
• Hedge accounting basics under IFRS 94 minute readHedge accounting under IFRS 9 explained: fair value, cash flow and net investment hedges, qualifying criteria, effectiveness and a forward contract example.
• Derecognition of financial assets under IFRS 93 minute readWhen IFRS 9 allows derecognition of financial assets: transfers, the risks and rewards test, control and continuing involvement, with factoring examples.
• Modification of financial assets and liabilities under IFRS 93 minute readHow IFRS 9 treats a modification of financial assets and liabilities: the 10% test, substantial modifications, modification gains or losses, with an example.

IFRS 15 guides

• IFRS 15 revenue from contracts with customers explained3 minute readIFRS 15 explained: the core principle, the five steps, what is in scope, contract assets and liabilities, and what companies disclose, with a worked example.
• The IFRS 15 five-step model with examples3 minute readThe IFRS 15 five-step model applied to a phone bundle: the contract, the obligations, the price, its allocation and revenue, with journal entries.
• Identifying performance obligations under IFRS 153 minute readHow to identify performance obligations under IFRS 15: the two tests for a distinct good or service, the series rule, warranties and options, with an example.
• Variable consideration and the constraint under IFRS 153 minute readHow IFRS 15 treats rebates, discounts, bonuses, penalties and returns: the expected value and most likely amount methods, the constraint, and a rebate example.
• Allocating the transaction price using stand-alone selling prices3 minute readHow to allocate a contract price under IFRS 15: estimating stand-alone selling prices, the residual approach, allocating discounts and variable amounts.
• Principal or agent: gross or net revenue under IFRS 153 minute readHow to decide whether you are a principal or an agent under IFRS 15, the control test and its three indicators, and what it does to revenue, with an example.
• Revenue over time or at a point in time under IFRS 154 minute readWhen IFRS 15 revenue is recognised over time or at a point in time: the three criteria, measuring progress and control indicators, with a construction example.
• Contract costs: costs to obtain and fulfil a contract under IFRS 153 minute readWhich contract costs IFRS 15 capitalises: incremental costs of obtaining a contract, such as commissions, and costs to fulfil it, and how they are amortised.
• Licences of intellectual property under IFRS 153 minute readHow IFRS 15 treats licences of intellectual property: right to access or right to use, the activities test, sales-based royalties, and the US GAAP difference.
• Consignment, bill-and-hold and repurchase agreements under IFRS 153 minute readHow IFRS 15 treats consignment stock, bill-and-hold sales and repurchase agreements, with the tests for each and what happens to revenue, with examples.

More standards

Guides on IFRS 3, IAS 38, IAS 19 and the other standards are being added. In the meantime, every IFRS and IAS explained in one line gives you the full map.