IFRS
IFRS is the acronym for International Financial Reporting Standards. IFRS is used throughout the world except in the United States where U.S. GAAP (generally accepted accounting principles) is followed.
IFRS is a set of international accounting standards stating how particular types of transactions and other events should be reported in financial statements. IFRS are issued by the International Accounting Standards Board.
IFRS are sometimes confused with International Accounting Standards (IAS), which are the older standards that IFRS replaced.
There is an urgency for the U.S. to adopt the IFRS because of the growth in global financial markets, global commerce, acquisition of U.S. companies by corporations outside of the U.S., multinational corporations having subsidiaries both inside and outside of the U.S., and so on. Since financial statements report two or three years of amounts, the amounts from earlier years will need to follow IFRS in order to be comparative.
Efforts are also under way for a simplified version of IFRS that would apply for small and medium sized privately held corporations.
Some other features of IFRS accounting that are of certain significance a great perception of Prudential's final results
One other characteristics that are of certain significance depend on: your timing of ownership of selected IFRS standards as well as their particular resulting impact when your financial statements; your accounting with regard to UNITED KINGDOM with-profits resources; along with the demonstration of selected objects from the financial statements.
Except for investment agreements devoid of discretionary contribution characteristics, your Group's life guarantee agreements tend to be classified as insurance policy agreements as well as investment agreements together with discretionary taking part characteristics. Governed by your adjustments defined under according on the Prudential Guarantee Company with-profits organization as permitted by means of IFRS 5, belongings as well as financial obligations these agreements (see below) tend to be accounted for less than in the past employed GAAP. Keeping that in mind, except as defined under, your improved statutory schedule ("MSB") of credit reporting as determined from the revised Record of Encouraged Train ("SORP") given with the ABI inside Nov 2003 have been employed.
Coming from Economy is shown 1, 2005 your Class offers decided on to enhance it is accounting with regard to UNITED KINGDOM governed with-profits resources with the non-reflex software on the UNITED KINGDOM accounting standard FRS twenty-seven, "Life Assurance". Within this kind of standard, the key accounting adjustments that were needed for with-profits resources on the Prudential Guarantee Company have been:
- Nonrecognition of deferred acquisition expenses as well as related deferred tax.
- Replacement of MSB financial obligations together with fine-tuned practical schedule financial obligations.
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