Annual Report of IFRS Foundation 2011
The annual report 2011 of International Financial Reporting Standards has been published by IFRS Foundation with the co-operation of International Accounting Standards Board. The report has covered all aspects of IFRS in detail. It is prepared according to sections laid down in “Standard Setting Activities” and “Trustees of the IFRS Foundation”. There are so many issues which are raised in this report. Management also put forward some recommendations for the improvement of IFRS.
Hans Hoogervorst is the present chairman of the International Accounting Standards Board. In this Annual Report, he expressed his views in a very professional way. He said that International Financial Reporting Standards need some time for its complete implementation. Financial statements are preparing in the world by custom methods. It is a difficult task to gather the whole world on same point. But it is not impossible. It is a time taking activity because general awareness about IFRS and IAS is very low. To create general awareness among the people, IASB is organizing conferences and seminars on regular intervals.
He further added that there are lots of areas in International Financial Reporting Standards which need improvement. He gave an example of impairment cost briefly in this report. The International Accounting Standards Board is working on such issues which are necessary for the improvement of IFRS. One of the challenges which IASB is facing is the method or procedure which is to be followed for the improvement of IFRS. Hans Hoogervorst on this issue said that the IASB has launched a Research Program. In this program, a team of professional financial analysts has been given the task to find the solutions to fix the problems which are hurdles in our way. The team will also find those areas in International Financial Reporting Standards which are lacking behind technically.
The chairman of IASB said that the National Standards Setters can play an important role to serve this purpose. IASB is also availing the services of National Standard Setters in fixing the technical problems in International Financial Reporting Standard. In this annual report, ranking of public and private limited companies on the basis of compliance with IFRS and IAS is also one of its attractive features.