Difference between IAS and IFRS
IAS and IFRS are rules and conventions that should be followed when making financial reports. In the year 1960s the need to homogenize the accounting and the reporting was brought into concern. This was to make the understanding of the various financial reports of the various organization by anybody from anywhere in the world. It also meant to eliminate cases of misrepresentation by the various companies. These requirements led to the formation of IAS.
This in essence stands for International Accounting Standards, they are meant to implement how a particular transaction should be reflected in the financial statements of a company. These set of standards were formulated by the International Accounting Standards Committee from the year 1973 to the year 2001, fro then since the roles of IASC in formulating these standards was assumed by IASB. For the period held by the IASC, 41 standards were implemented to take effect.
Since the assumed responsibility in formulating the standards by IASB (International Accounting Standards Board) from IASC, the present standards, though there were some few standards that were to be reviewed to form the current standards to be used, these were to be referred to as IFRS (International Financial Reporting Standards). The changes were necessitated by the need to reflect the new changes and concepts in the corporate world.
Distinction between IAS and IFRS
To some extent you may find it difficult to differentiate the two terms as they both technically mean the same thing. IFRS though is more of the current standards that reflect the market changes and demands for the last 20 years. Essentially IAS does not contain only of the out of date standards but its standards are also employed in the modern economy. The numbers of IFRS exercised are only 9 and the remaining is the carried forward of the important parts of the IAS. Though let us understand this that the responsibility of IASB in formulating IAS ceased very long ago. The current standards to be issued are going to be IFRS only and if the two standards are to go against each other at some point, and then we should acknowledge the IFRS as the ultimate ones to be followed.
These standards endorse me and you in understanding the basic financial statements that are made by various firms irrespective of their country of origin. It is also good to understand that IASB does not make these standards a must way to follow but publicly traded companies must follow them. These is enforced and overseen by its corresponding body (Securities and Exchange Commission).
In a Nut Shell
IAS was formulated by IASC in the year 1973 -2001 and oversees how each financial transaction is reflected in the financial statement.
The IFRS are the modernly standards in the financial word.