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The Regulatory Framework of Financial Reporting

3.2 Relevant international accounting standards

The syllabus for Subject BA3, Fundamentals of Financial Accounting, states that no
detailed knowledge of any specific accounting treatment contained in IFRS and IAS
is necessary. The only exceptions to this statement are in relation to

IAS 2 Inventories

IAS 16 Property, Plant and Equipment, and

IAS 38 Intangible Assets

which have been included within this publication as required.

The influence of IFRSs on this publication has three main effects:

 Terminology – This text uses the words, phrases, definitions and so on used in
IAS and IFRS.

 Presentation – The presentation of the financial statements and particularly the
statement of financial position and statement of cash flows follow the IAS and
IFRS formats. The syllabus states that the formats in IAS 1 Presentation of
Financial Statements (Revised) and IAS 7 Statement of Cash Flows should be
applied when preparing corporate entity financial statements.

 Technical – The technical requirements of the IFRS have been followed.

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