In Compliance With International Financial Reporting Standards – FAQ | IFRS

In compliance with International Financial Reporting Standards

Any entity asserting that a set of financial statements is in compliance with IFRS complies with all applicable standards and related interpretations, and makes an explicit and unreserved statement of compliance in the notes to the financial statements. Compliance with IFRS encompasses disclosure as well as recognition and measurement requirements. [IAS 1 16]

A few examples of such a compliance statement are provided here:

Source: Unilever Annual Report and Accounts 2018

Source BP Annual report and Form 20-F 2018 In compliance with International Financial Reporting

The IASB does not carry out any inquiry or enforcement role regarding the application of its standards. However, this is often undertaken by local regulators and/or stock exchanges, which includes the SEC for non-US companies. In compliance with International Financial Reporting


XBRL In compliance with International Financial Reporting

eXtensible Business Reporting Language (XBRL) is a form of electronic communication whose main feature includes interactive electronic tagging of both financial and non-financial data. The IFRS Taxonomy is a translation of IFRS into XBRL. It classifies information presented and disclosed in IFRS financial statements and reflects presentation and disclosure requirements in IFRS Standards. In compliance with International Financial Reporting

The IASB is not issuing requirements to file under the IFRS Taxonomy; the submission of IFRS financial statements in XBRL is mandated by regulators in their jurisdiction. In compliance with International Financial Reporting


Fair presentation

The overriding requirement of IFRS is for the financial statements to give a fair presentation (or true and fair view). Compliance with IFRS, with additional disclosure when necessary, is presumed to result in a fair presentation. [IAS 1 15]

If compliance with a requirement of an IFRS would be so misleading that it would conflict with the objective of financial reporting set out in the Conceptual Framework (see the purpose of financial reporting), then an entity departs from the required treatment to give a fair presentation, unless the relevant regulator prohibits such an override. If an override cannot be used because it is prohibited by the regulator, then additional disclosure is required in the notes to the financial statements. When an entity departs from a requirement of an IFRS, extensive disclosures are required, including details of the departure, the reasons for the departure and its effect. The use of a true and fair override is very rare under IFRS. [IAS 1 19 – 24]

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