• IFRS 2 — Share-Based Payment
• IFRS 5 — Non-Current Assets Held for Sale and Discontinued Operations
• IFRS 6 — Exploration for and Evaluation of Mineral Resources
• IFRS 8 — Operating Segments
• IFRS 9 — Financial Instruments
• IFRS 15 — Revenue from Contracts with Customers
• IFRS 16 — Leases
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IFRS 2 — Share-Based Payment
It outlines how companies should account for employee stock options and similar incentives. It ensures that these costs are reported clearly, so investors know their impact.
Example:
“Imagine you’re an employee who receives stock options as part of your compensation. This standard makes sure these options are valued correctly and reported transparently, reflecting their true cost to the company.”
IFRS 5 — Non-Current Assets Held for Sale and Discontinued Operations
It provides rules for how companies should report assets they are planning to sell or businesses they are closing. This ensures that financial statements accurately reflect the current situation.
Example:
“Think of it as a guideline for companies preparing to sell a major asset. It ensures that the asset’s value and any related financial effects are clearly presented to potential buyers.”
IFRS 6 — Exploration for and Evaluation of Mineral Resources
This standard provides guidelines for mining and resource companies on how to handle costs related to exploring and evaluating mineral resources. It helps make financial reporting straightforward.
Example:
“If you’re working for a mining company exploring new deposits, this standard guides how to account for exploration costs and the valuation of those assets, ensuring the financial statements reflect their true value.”
IFRS 8 — Operating Segments
It requires companies to report financial information for different parts of their business separately, giving a clearer view of how each segment performs.
Example:
“Think of IFRS 8 as a way to spotlight each department of a company, showing how each one contributes to the company’s overall financial results.”
IFRS 9 — Financial Instruments
It covers how to classify, measure, and manage financial instruments like loans and investments, ensuring clear and consistent reporting.
Example:
“Consider IFRS 9 as a toolkit for companies to manage and report on their various financial instruments, ensuring transparency and accuracy in their financial statements.”
IFRS 15 — Revenue from Contracts with Customers
This standard provides a framework for recognizing revenue from contracts, ensuring consistency across industries.
Example:
“It acts as a guide for companies, helping them report revenue accurately and transparently, whether they’re delivering goods, services, or a combination of both.”
IFRS 16 — Leases
It changes how leases are reported, requiring companies to show lease obligations on their balance sheets, providing a clearer picture of their financial commitments.
Example:
“With this standard, leasing a car or office space becomes more transparent in financial statements, reflecting the true extent of a company’s leasing commitments.”
Dive deeper into the standards here.
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