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"International Financial Reporting Standards (IFRS): Principles, Standards, and
Challenges"

I
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Key Principles of IFRS

Fair presentation of financial statements
Going concern assumption
Accrual basis of accounting
Materiality and prudence
III
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Comparison with US GAAP

Similarities and differences between IFRS and US GAAP
Impact on financial reporting and analysis
V
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Conclusion

Summary of key points
Future developments and trends in IFRS
I
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The purpose of IFRS is to provide transparent, comparable, and high-quality financial
information that is useful for investors and other users of financial statements
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II
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Going concern assumption: financial statements should be prepared on the assumption that
the entity will continue operation for the foreseeable future
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Materiality and prudence: financial statements should be prepared with the understanding of
the materiality and prudence principles, which means that only material information should be
included in the financial statements, and where there is uncertainty, a degree of caution should
be exercised in making estimates
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IFRS Standards and their application

IFRS 1: First-time adoption of IFRS guides entities that are adopting IFRS for the first time
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g
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IFRS 9: Financial instruments guide the classification, measurement, impairment, and
derecognition of financial instruments
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IFRS 16: Leases guides accounting for leases by lessees and lessors
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Comparison with US GAAP

IFRS and US GAAP have some similarities, such as both are based on the accrual basis of
accounting and the fair value measurement
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The impact on financial reporting and analysis may vary depending on the specific differences
between IFRS and US GAAP
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Challenges and limitations of IFRS

Implementation and compliance costs: The adoption and implementation of IFRS can be costly
for small and medium-sized entities
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Limited guidance on specific industries and transactions: Some specific industries and trades
may need more guidance under IFRS
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Conclusion

IFRS provides a common global language for business affairs and transparent, comparable, and
high-quality financial information that is useful for investors and other users of financial
statements
...

Future developments and trends in IFRS may include increased use of technology in financial
reporting and greater harmonization of accounting standards across different countries

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