Question

Define following terms: (a) What is an accounting cycle? (b) What is IFRS? State the objectives of IFRS.

Answer 1

Answer:

(a) Accounting cycle:

The accounting cycle is a collective process of identifying, analyzing, and recording the accounting events of a company. It is a standard 8-step process that begins when a transaction occurs and ends with its inclusion in the financial state.

(b) IFRS:

International Financial Reporting Standards:

International Financial Reporting Standards, commonly called IFRS, are accounting standards issued by the IFRS Foundation and the International Accounting Standards Board.

(c) Objectives of IFRS:

"The objectives of the IFRS Foundation are as follow:"

1. To develop, in the public interest, a single set of high-quality, understandable, enforceable, and globally accepted financial reporting standards based upon clearly articulated principles.

2. To promote the use and rigorous application of those standards.

3. In fulfilling the objectives associated with the first two objectives, to take account of, as appropriate, the needs of a range of sizes and types of entities in diverse economic settings.

4. To promote and facilitate adoption of IFRSs, being the standards and interpretations issued by the IASB, through the convergence of national accounting standards and IFRSs.

Hope this helps you alot ... Thanks☺️