Introduction to IFRS 9th Edition: An Introductory Overview of International Financial Reporting Standards

The Introduction to IFRS 9th edition, published by LexisNexis, is an indispensable resource for students and professionals who want to understand the principles and conceptual issues of IFRS.

As the world of business becomes increasingly globalized, it's essential that accounting standards are consistent across borders. The International Financial Reporting Standards (IFRS) serve as a common language for financial reporting, making it easier for investors, analysts, and stakeholders to understand financial statements from companies operating in different countries. 

 

 

The Purpose of Intro to IFRS 9th Edition

The purpose of the Introduction to IFRS 9th edition is to provide an introductory, but comprehensive, overview of the principles and conceptual issues of IFRS, and to explain the accounting and disclosure requirements of the applicable accounting standards. This book is an essential resource for anyone who wants to understand the complex world of international financial reporting.

 

Breakdown per chapter of Intro to IFRS

What follows is a breakdown of each chapter as outlined in the Contents section of the book, with more information on each.

 

 

The Conceptual Framework for Financial Reporting (Chapter 1)

The conceptual framework for financial reporting is a critical aspect of IFRS. This framework sets out the concepts that underlie financial reporting, and provides guidance on the presentation of financial statements. The Introduction to IFRS 9th edition provides a detailed overview of the conceptual framework for financial reporting, and explains how it applies to financial statements prepared in accordance with IFRS.

 

Presentation of Financial Statements - IAS 1

International Accounting Standard 1 (IAS 1) sets out the requirements for the presentation of financial statements. This standard outlines the format and content of financial statements, including the balance sheet, income statement, statement of changes in equity, and statement of cash flows. The Introduction to IFRS 9th edition provides a detailed overview of IAS 1, and explains how to prepare financial statements in compliance with this standard.

 

Inventories - IAS 2

International Accounting Standard 2 (IAS 2) provides guidance on the measurement and valuation of inventories. This standard sets out the requirements for determining the cost of inventories, and for recognizing inventories as assets in the financial statements. The Introduction to IFRS 9th edition explains the principles and requirements of IAS 2, and provides examples of how to apply them in practice.

 

Statement of Cash Flows - IAS 7

 

The Introduction to IFRS 9th edition provides a detailed overview of the International Accounting Standard 7 (IAS 7), which sets out the requirements for the preparation of the statement of cash flows. This section of the book explains the principles and requirements of IAS 7, and provides guidance on how to prepare the statement of cash flows in compliance with this standard.

The statement of cash flows is a crucial financial statement that reports the cash inflows and outflows of an entity, and provides information on the sources and uses of cash. It helps users of financial statements to assess the liquidity and solvency of the entity, as well as its ability to generate cash flows in the future. The Introduction to IFRS 9th edition covers the three main categories of cash flows: operating, investing, and financing activities, and provides examples of how to prepare the statement of cash flows for various scenarios.

By understanding the requirements of IAS 7 and how to prepare the statement of cash flows in compliance with this standard, students and professionals can gain a thorough understanding of the financial position of a company, and how it is generating and using its cash resources. This knowledge is essential for anyone working in the accounting and finance fields, and the Introduction to IFRS 9th edition is an indispensable resource for learning about this important financial statement.

 

Accounting Policies, Changes in Accounting Estimates, and Errors - IAS 8

International Accounting Standard 8 (IAS 8) sets out the requirements for accounting policies, changes in accounting estimates, and the correction of errors. This standard provides guidance on the selection and application of accounting policies, and sets out the requirements for changes in those policies. The Introduction to IFRS 9th edition explains the principles and requirements of IAS 8, and provides examples of how to apply them in practice.

 

Events after the Reporting Period - IAS 10

International Accounting Standard 10 (IAS 10) sets out the requirements for the treatment of events that occur after the end of the reporting period but before the financial statements are authorized for issue. This standard provides guidance on how to recognize and disclose events that have occurred after the reporting period but before the financial statements are issued.

 

Property, plant and equipment - IAS 16

IAS 16 provides guidance on how to account for property, plant, and equipment, including the measurement of their costs, depreciation, and the recognition of gains or losses on disposal. This standard applies to tangible assets that are held for use in the production or supply of goods or services, for rental to others, or for administrative purposes.

 

Leases - IFRS 16

This section of the book deals with the accounting and disclosure requirements of leases, which is governed by the International Financial Reporting Standard (IFRS) 16. The book provides a detailed understanding of how leases are classified, measured, and presented in the financial statements. The book explains how IFRS 16 aims to bring transparency to lease accounting and how it affects the financial position of the company.

IFRS 16 introduces a new standard on lease accounting, which replaces the previous guidance under IAS 17. The new standard aims to provide a more faithful representation of leases and requires lessees to recognize a right-of-use asset and a lease liability on their balance sheet for all leases with a term of more than 12 months, regardless of whether they are classified as operating or finance leases.

 

Revenue from contracts with customers - IFRS 15

IFRS 15 sets out the principles for recognizing revenue from contracts with customers. The standard requires an entity to recognize revenue when it transfers goods or services to a customer in an amount that reflects the consideration it expects to be entitled to in exchange for those goods or services.

This section of the book focuses on the revenue recognition requirements under IFRS 15, which outlines the principles for recognizing revenue from contracts with customers. The book covers the five-step model for recognizing revenue, including identifying the contract, determining the transaction price, allocating the price to the performance obligations, recognizing revenue as the performance obligations are met, and accounting for contract modifications. This section is especially relevant for those studying the FAC2601, FRK201, and FRK211E courses.

 

Employee benefits - IAS 19

This section of the book deals with the accounting and disclosure requirements of employee benefits, which is governed by the International Accounting Standard (IAS) 19. The book provides an overview of the types of employee benefits, such as pensions, gratuities, and other post-employment benefits, and explains how they are measured and recognized in the financial statements. The section also discusses the requirements for disclosing information related to employee benefits, such as the types and amounts of benefits provided.

 

The effects of changes in foreign exchange rates - IAS 21

IAS 21 provides guidance on how to account for transactions and balances denominated in foreign currencies. The standard requires an entity to translate foreign currency transactions and balances into its functional currency at the exchange rate at the date of the transaction or balance sheet date, and to recognize gains or losses on translation in profit or loss.

This section of the book explains how changes in foreign exchange rates can affect the financial statements of a company, and how to account for such changes. The section covers the requirements of the International Accounting Standard (IAS) 21, including the determination of the functional currency, the translation of foreign currency transactions, and the accounting for foreign exchange gains and losses.

 

Impairment of assets - JAS 36

JAS 36 deals with the impairment of assets, including intangible assets, property, plant, and equipment, and investments in subsidiaries, associates, and joint ventures. The standard requires an entity to recognize an impairment loss when the carrying amount of an asset exceeds its recoverable amount, which is the higher of its fair value less costs of disposal and its value in use.

This section of the book deals with the impairment of assets, which is governed by the International Accounting Standard (IAS) 36. The book explains what impairment is, how it is recognized, and how it affects the financial statements. The section also provides an overview of the requirements for testing for impairment, including the identification of indicators of impairment, the estimation of the recoverable amount, and the recognition of impairment losses.

 

Provisions, contingent liabilities and contingent assets - IAS 37; IFRIC1

IAS 37 provides guidance on the recognition, measurement, and disclosure of provisions, contingent liabilities, and contingent assets. A provision is a liability of uncertain timing or amount, while a contingent liability is a possible obligation that arises from past events but is not probable or cannot be reliably measured. A contingent asset is a possible asset that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events that are not wholly within the control of the entity.

This section of the book explains how provisions, contingent liabilities, and contingent assets are accounted for in the financial statements, and is governed by the International Accounting Standard (IAS) 37 and the International Financial Reporting Interpretations Committee (IFRIC) 1. The book covers the requirements for recognizing and measuring provisions, as well as the disclosure requirements for contingent liabilities and assets.

 

Intangible assets - IAS 38

This section of the book deals with the accounting and disclosure requirements of intangible assets, which are governed by the International Accounting Standard (IAS) 38. The book provides an overview of the types of intangible assets, such as patents, trademarks, and copyrights, and explains how they are recognized and measured in the financial statements. The section also discusses the requirements for disclosing information related to intangible assets, such as the types and amounts of intangible assets held.

 

Investment property - IAS 40

This section of the book covers the accounting and disclosure requirements for investment property, which are governed by the International Accounting Standard (IAS) 40.

IAS 40 prescribes the accounting treatment of property investments that are owned and intended to be leased out under operating leases or held for capital appreciation or both. The standard defines the criteria for initial recognition of investment property and the measurement of the property thereafter. It also requires that investment property is measured at fair value and disclosed in the financial statements.

 

Financial instruments - IFRS 9; IAS 32; IFRS 7

This section of the book covers the three IFRS standards dealing with financial instruments: IFRS 9, IAS 32, and IFRS 7. These standards cover the classification and measurement of financial assets and liabilities, impairment of financial assets, and hedge accounting. The book explains how the IFRS 9 model is used to determine the classification and measurement of financial instruments (financial assets and financial liabilities, including derivatives), and how it has been improved over previous versions. It also covers the disclosure requirements set out in IFRS 7 and the principles of offsetting financial assets and liabilities set out in IAS 32.

 

Companies Act - Companies Act 2008 (Act 71 of 2008) as amended by the Companies Amendment Act 2011 (Act 3 of 2011) (Chapter 18)

The Companies Act is a crucial piece of legislation that governs companies in South Africa. This section of the book explains how the Act affects the accounting and financial reporting of companies, and how it impacts financial statements prepared in accordance with IFRS. It covers key provisions of the Act, including the requirement to prepare annual financial statements, the roles of directors and auditors, and the disclosure requirements of the Act.

 

How Introduction to IFRS 9th Edition Stands Out Among Competing Accounting Textbooks

The Introduction to IFRS 9th edition stands out from its competitors by providing a comprehensive overview of the principles and conceptual issues of IFRS, as well as the accounting and disclosure requirements of the applicable accounting standards. This book is an essential resource for anyone who wants to understand the complex world of international financial reporting.

One way that the book distinguishes itself from competitors is by providing clear explanations of the principles and conceptual issues of IFRS, rather than simply listing the accounting and disclosure requirements of individual standards

One of the unique features of this book is its focus on IFRS 16, which introduces a new standard on lease accounting that replaces the previous guidance under IAS 17. The book provides a detailed understanding of how leases are classified, measured, and presented in the financial statements, as well as how IFRS 16 aims to bring transparency to lease accounting and how it affects the financial position of the company.

Another key feature of the book is its coverage of IFRS 15, which sets out the principles for recognizing revenue from contracts with customers. The book covers the five-step model for recognizing revenue, including identifying the contract, determining the transaction price, allocating the price to the performance obligations, recognizing revenue as the performance obligations are met, and accounting for contract modifications. This section is especially relevant for those studying accounting and finance courses.

In addition, the book covers a wide range of topics, including IAS 1, IAS 2, IAS 7, IAS 8, IAS 10, IAS 16, IFRS 16, IFRS 15, IAS 19, IAS 21, IAS 36, IAS 37, IAS 38, IAS 40, and IFRS 9, giving readers a comprehensive understanding of the most important accounting standards.

In addition to its comprehensive coverage of IFRS, the Introduction to IFRS 9th edition is written by a team of expert authors who have extensive experience in the field of accounting and financial reporting. This ensures that the content is not only accurate, but also relevant and up-to-date, ensuring that readers are always up to date with the latest developments in international financial reporting.

Overall, the Introduction to IFRS 9th edition provides a comprehensive and practical guide to IFRS that is suitable for students, professionals, and anyone seeking a deeper understanding of international financial reporting

 

Institutions that use Introduction to IFRS 9^th Edition

The Introduction to IFRS 9th edition is a widely used accounting textbook that has been prescribed by several leading institutions in South Africa, including UNISA, University of Pretoria, and Varsity College. These institutions recognize the value of the book in helping students understand the principles and concepts of IFRS, as well as the accounting and disclosure requirements of the applicable accounting standards.

Intro to IFRS 9th edition is prescribed in a number of accounting courses in South Africa, including FAC2601, FRK201, FRK211E, and FIAC6211. These courses cover various topics in accounting and finance, and the book is an important resource for students to gain a thorough understanding of IFRS and its application in the accounting profession.

 

ISBN related information for Introduction to IFRS 9th Edition

Title: Introduction to IFRS

Edition: 9th

ISBN 13 (SKU): 9781776174683

Authors:  Z. Koppeschaar, J. Rossouw, K. Papageorgiou, A. Schmulian, C. Brittz & A. Gazi-Babana

Publisher: Lexis Nexis

Publication date: 2022

Country of Publication: South Africa

 

Conclusion for Introduction to IFRS 9^th edition

In conclusion, the Introduction to IFRS 9th edition is a valuable resource for students and professionals in the accounting field, providing a comprehensive overview of the principles and conceptual issues of IFRS, as well as the accounting and disclosure requirements of the applicable accounting standards. The book is widely recognized and prescribed by leading institutions in South Africa, making it an essential resource for anyone looking to develop their knowledge and skills in accounting and finance. Whether you are a student or a professional, this book is a must-have for your accounting library.

 

About the author of the post

This blog post was written by Jacques du Toit, the owner of Bookit. He holds a BCom Accounting Sciences degree from the University of Pretoria. He has worked in audit and accounting firms and has been responsible for the financial management of all his businesses, along with preparation of annual financial statements. He has also personally used this book and many other books in the accounting, audit, tax, financial management and law fields.