How can you ensure expense reports meet International Financial Reporting Standards (IFRS)?

1 Know the IFRS requirements

The first step is to familiarize yourself with the IFRS requirements that apply to your expense reports. Depending on the nature and purpose of your expenses, you may need to follow different rules for recognition, measurement, presentation, and disclosure. For example, if you incur travel expenses for business purposes, you may need to allocate them to different segments or functions of your organization, and disclose them separately from other operating expenses. You can find the relevant IFRS standards and interpretations on the official website of the International Accounting Standards Board (IASB).

2 Use a standardized template

The second step is to use a standardized template for your expense reports that complies with the IFRS format and terminology. This will help you avoid errors and inconsistencies, and make it easier to review and approve your reports. A standardized template should include the following elements: a header with the date, name, and purpose of the expense report; a summary of the total amount and currency of the expenses; a breakdown of the expenses by category, such as travel, accommodation, meals, entertainment, etc.; a description and justification of each expense item; and a signature or approval section.

3 Attach supporting documents

The third step is to attach supporting documents for your expense items, such as receipts, invoices, tickets, vouchers, etc. These documents provide evidence and details of your expenses, and help you verify their accuracy and validity. They also help you comply with the IFRS disclosure requirements, which may vary depending on the type and amount of your expenses. For example, if you incur entertainment expenses, you may need to disclose the names and positions of the persons you entertained, and the business reason for the entertainment. You should keep your supporting documents for at least five years, or longer if required by law or regulation.

4 Review and reconcile your reports

The fourth step is to review and reconcile your expense reports before submitting them. You should check your reports for completeness, accuracy, and compliance with the IFRS requirements. You should also compare your reports with your bank statements and credit card statements, and make sure that there are no discrepancies or duplications. If you find any errors or issues, you should correct them and document the changes. You should also keep a record of your reviews and reconciliations, and provide them to your auditor or supervisor if requested.

5 Seek professional advice

The fifth step is to seek professional advice if you have any doubts or questions about your expense reports and the IFRS requirements. You can consult your internal or external auditor, your accounting manager, or your IFRS expert. They can help you clarify the rules and guidelines, and provide you with feedback and recommendations. They can also help you identify and resolve any problems or risks that may arise from your expense reports, and ensure that they are consistent and reliable.

6 Keep up to date with the changes

The sixth step is to keep up to date with the changes and updates in the IFRS standards and interpretations. The IASB regularly issues new or revised standards and interpretations, which may affect how you prepare and present your expense reports. You should monitor the IASB website and publications, and follow the latest developments and announcements. You should also attend training sessions or webinars, and participate in forums or discussions, to learn from the best practices and experiences of other accounting professionals. By staying informed and updated, you can ensure that your expense reports meet the IFRS standards and expectations.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?