Difference Between IAS and IFRS
IAS and IFRS are standards in accounting that we adhere while we are practicing financial reporting.
IAS, or the International Accounting Standards, was a set of standards that tell us how a particular transaction or event should be stated in the financial statements. The International Accounting Standards Committee (IASC) has been issuing these standards from 1973 until 2001 when the IASB took over the responsibility in setting the standards. From 1973 to 2001 there were 41 IAS issued.
When the International Accounting Standards Board (IASB) took over IASC’s responsibilities in 2001, they decided to adopt the current standards. However there were some standards which needed revisions, and for future standards, they were going to call them the International Financial Reporting Standards (IFRS). This change took place by the need to update and refine the current concepts and standards to reflect the changes in the markets, common business practices and the economic environment.
IFRS is more recent and reflects the changes in the accounting and business practices over the last two decades. Not all of the IAS standards are outdated, however. In fact, to date there are only 9 IFRS issued and those IAS that were not changed by the IFRS and others are still in use. Any future standards issued by the IASB will now be called IFRS, and if they are contradictory to existing IAS, the IFRS will be followed.