AMU faculty speaks on IFRS

Aligarh : Prof Nawab Ali Khan, Chairman, Department of Commerce, Aligarh Muslim University (AMU) gave an overview of accounting standards that govern how particular types of transactions and events should be reported in financial statements and delved into the widespread adoption of International Financial Reporting Standards (IFRS) and its principles of clarity, relevance, reliability and comparability.

He was speaking as a special guest in the inaugural session of the online Faculty Development Program (FDP) on ‘International Financial Reporting Standards’ of the School of Finance and Commerce, Galgotais University, Greater Noida in association with the Associate of Certified Chartered Accountants (ACCA), UK and International Skills Development Corporation (ISDC).

Explaining how IFRS as accounting standards provides the basis on which companies’ report their financial performance, Prof Nawab elucidated that IFRS constitute a standardised way of describing the entities’ financial performance and position so that their financial statements are understandable and comparable across international boundaries.

“IFRS are intended to be applied by profit-oriented entities which give information about performance, position and cash flow that helps the investors, lenders, creditors, suppliers, customers, government, regulators and the public to make financial decisions”, he said.

He also spoke on the requirement of IFRS Standards in more than 140 jurisdictions, permitted in countries such as South Korea, Brazil, India, Hong Kong, Australia, Malaysia, Russia, Chile, Philippines, Kenya, South Africa, Singapore and Turkey and political-economic unions and cooperation councils such as the European Union and GCC countries.