Daniyal Z. Hashmi’s Post

Update on Digital Financial Reporting Activities from IFRS Foundation Following an insightful article released by the IFRS Foundation two months ago, we’re excited to hear more about their digital financial reporting activities at the next IFRS Taxonomy Consultative Group meeting. Digital reporting feels inevitable, but why is it so crucial? It significantly increases comparability and transparency by standardizing financial data, making it easier to analyse and understand. Enhanced investor confidence and improved accuracy of statistics are key outcomes, as clear and reliable financial reports boost trust and provide a solid foundation for economic insights. Additionally, digital reporting reduces the filing burden, particularly for small and micro entities, simplifying processes and saving valuable time and resources. Remarkably, XBRL is the predominant computer-readable, structured data format for financial information, maintained by XBRL International, Inc. With its adoption spanning over 70 countries, it’s impressive to recognize that CoreFiling supports most of these implementations worldwide. #DigitalReporting #FinancialReporting #IFRS #XBRL #Transparency #InvestorConfidence #Regulation

Digital Financial Reporting: Facilitating digital comparability and analysis of financial reports [April 2024] Digital financial reporting allows investors and other users of that information to efficiently search, extract and compare companies’ accounting and sustainability-related financial disclosures. Today, many investors, companies and regulators are already getting the benefits. Over 90% of listed companies (by global market capitalisation) are required to undertake digital financial reporting to some extent. The IFRS digital taxonomies facilitate the reporting of information prepared in accordance with IFRS Standards in a computer-readable format. This article provides an introduction to digital financial reporting and the IFRS digital taxonomies. Further resources relating to digital financial reporting and the IFRS digital taxonomies can be found at https://lnkd.in/gbBiZUJg #ifrs #financialreporting #digitalfinancialreporting #standards #ifrsstandards

‏Challenges and Opportunities in Adopting International Financial Reporting Standards (IFRS) ‏Adopting International Financial Reporting Standards (IFRS) enhances transparency and credibility, making it easier for companies to access global financial markets. However, companies face challenges such as cost, complexity, and the need to adapt to local regulations. Opportunities : ‏- Improved transparency and credibility ‏- Easier international financing ‏- Enhanced competitiveness ‏- Better internal management Challenges : ‏- High costs ‏- Complexity in application ‏- Adapting to changes ‏- Compatibility with local regulations ‏To overcome these challenges, companies can invest in proper training, consult experts, and gradually implement the standards. ‏The transition to IFRS represents an important step towards enhancing transparency and global alignment, offering significant benefits to companies and investors alike.

THE IMPACT OF THE INTERNATIONAL FINANCIAL REPORTING STANDARD ON FINANCIAL REPORTS The International Financial Reporting Standards (IFRS) have had a significant impact on financial reporting globally. Some key impacts include: 1. Standardization:IFRS promotes consistency and comparability of financial statements across countries, facilitating easier analysis for investors and stakeholders. 2. Transparency: IFRS requires more detailed disclosures, enhancing transparency in financial reporting and providing users with a clearer understanding of a company's financial position and performance. 3. Globalization: IFRS facilitates cross-border investment and capital flows by providing a common language for financial reporting, reducing the need for costly reconciliations between different accounting standards. 4. Quality of Information: IFRS aims to improve the quality of financial information by emphasizing principles-based standards, which focus on substance over form and require management to exercise judgment in applying the standards. 5. Impactct on Financial Ratios: Adoption of IFRS can sometimes result in changes to financial ratios due to differences in accounting treatments compared to previous standards, affecting how investors and analysts interpret financial performance. Overall, the impact of IFRS on financial reports is aimed at enhancing transparency, comparability, and the quality of financial information, thereby improving decision-making by investors and other stakeholders.

#Why most of the large entites prefer to present their financals according to #IFRS ? #In_Glance 📝 The importance of IFRS (International Financial Reporting Standards) can be outlined as follows: 1. **Uniformity and Comparability**: IFRS provides a single set of high-quality accounting standards, allowing for uniform financial reporting across different jurisdictions. This comparability is crucial for investors and analysts who assess financial performance across global markets. 2. **Enhanced Financial Transparency**: By promoting transparency in financial statements, IFRS helps stakeholders understand a company’s financial health, reducing the risk of misinterpretation or misinformation. 3. **Facilitation of Cross-Border Investment**: IFRS enables multinational companies to consolidate financial statements consistently, thereby streamlining the process for attracting foreign investment and facilitating global capital flows. 4. **Regulatory Alignment**: Many countries mandate IFRS compliance for publicly listed companies, ensuring that these firms meet international accounting requirements and enhance regulatory oversight. 5. **Improved Risk Management**: IFRS emphasizes a principle-based approach to financial reporting, which encourages companies to adopt a more rigorous assessment of risks, leading to better risk management practices. 6. **Support for Financial Instruments and Complex Transactions**: IFRS addresses a wide range of financial instruments and complex transactions (e.g., derivatives, leases), providing detailed guidance that enhances the accuracy of reporting in these areas. 7. **Enhanced Auditor Independence**: The standardized nature of IFRS helps auditors maintain independence and objectivity in their assessments, as they have a clear set of standards to evaluate against. 8. **Facilitating Mergers and Acquisitions**: Consistent reporting under IFRS simplifies due diligence processes in mergers and acquisitions, allowing for easier valuation and integration of financial information. 9. **Economic Stability and Growth**: By promoting high-quality reporting, IFRS contributes to overall economic stability, enhancing investor confidence and fostering sustainable economic growth. 10. **Technological Integration**: IFRS standards are designed to be compatible with advancements in technology, facilitating the integration of financial reporting systems and improving the efficiency of financial operations. Overall, IFRS plays a critical role in enhancing the quality and reliability of financial reporting, which is essential for informed decision-making and sustainable economic development.

Keeping up with the latest accounting standards is key to driving business resilience and transparency! As professionals in technical accounting, we know that recent updates to IFRS and UK GAAP can significantly impact financial reporting and decision-making. Whether it's sustainability reporting, revenue recognition, or enhanced disclosures, these changes ensure we keep pace with evolving stakeholder expectations and regulatory frameworks. Key takeaway: Staying ahead of these updates isn't just about compliance—it's about adding value to our organizations through more transparent and reliable financial insights. Let's continue to embrace these changes and elevate our financial reporting standards!

I am excited to share this insight on the latest amendments to IFRS 9 and IFRS 7, which clarify the classification and disclosure requirements for financial assets with contingent features, including ESG-linked assets. These changes, effective from January 2026, are crucial for accurate financial reporting under IFRS. #engifrc #financialreporting #IFRS #ESG #accounting #compliance #IFRS9 #IFRS7 #KPMG

The meeting summary for the 1 February 2024 #IFRS Taxonomy Consultative Group meeting is now available. As part of the meeting, the group held productive discussions on several key areas of digital financial reporting, including: 👉 feedback on the digital taxonomies for the IFRS Sustainability Disclosure Standards and the prospective #IFRS18 Presentation and Disclosure in Financial Statements; 👉 possible topics for the next IFRS Accounting Taxonomy common practice review; and 👉 a recently commissioned survey by the UK @Financial Reporting Council Lab of 160 investment professionals about their use of digital financial reports in #XBRL format. Read the full meeting summary: https://lnkd.in/ezKQc8GT #digitalreporting #taxonomy #IFRSaccounting #IFRSsustainability

International Financial Reporting Standards (IFRS) are a set of accounting principles developed by the International Accounting Standards Board (IASB) to provide a consistent framework for financial reporting across different countries. IFRS aims to enhance the transparency, comparability, and reliability of financial statements, enabling investors, regulators, and other stakeholders to make informed decisions based on accurate financial information. By standardizing financial reporting practices, IFRS helps to reduce the complexities and costs associated with financial reporting for multinational companies. It ensures that companies' financial statements are comparable regardless of where they operate, facilitating cross-border investment and economic integration. IFRS covers various aspects of financial reporting, including the recognition, measurement, presentation, and disclosure of financial transactions. It encompasses standards for different areas, such as revenue recognition, financial instruments, leases, and employee benefits. The adoption of IFRS can lead to greater consistency and comparability in financial reporting, improving the quality of financial information available to stakeholders. This helps in building trust and confidence in financial markets, which is essential for the smooth functioning of global economies. Read the attached document for more information.

On October 24, the European Securities and Markets Authority (ESMA) issued its annual European Common Enforcement Priorities (ECEP) for the 2024 corporate reporting season. ESMA, along with European enforcers, will emphasize three key areas for 2025 corporate reporting: - IFRS Financial Statements: Focus on liquidity, accounting policies, critical judgments, and significant estimates. - Sustainability Statements: Materiality considerations under the European Sustainability Reporting Standards (ESRS), including scope, structure, and Article 8 disclosures of the Taxonomy Regulation. - European Single Electronic Format (ESEF) Digital Reporting: Addressing common errors found in the Statement of Financial Position filings. ESMA’s ECEP statement underlines the need for alignment between financial and non-financial information, building on recent ESMA publications addressing IFRS 17 for Insurance Contracts, Carbon Allowance Accounting, ESRS implementation, and ESEF reporting. Next Steps: ESMA and National Competent Authorities (NCAs) expect issuers, auditors, and supervisors to integrate these priorities into the preparation, auditing, and oversight of 2024 annual financial reports. The recommendations should be applied with consideration of each issuer’s unique operations and materiality. For the latest regulatory insights in European financial reporting, follow Global Regulatory Insights. #ESMA #CorporateReporting #SustainabilityReporting #FinancialReporting #ESEF #EUCompliance #GRI