1. Comparison between IFRS and VAS by reconciling the overall points:
|
Criteria |
IFRS |
VAS |
|
Standards and regulations |
IFRS includes accounting standards and instructional materials. There are no specific regulations on the form of application like VAS. |
Besides accounting standards, there are also accounting regulations, which present specific requirements that businesses need to follow such as: system of accounts and accounting books, accounting methods, financial statement templates, currency, accounting period, depreciation, etc. |
|
List of Standards
|
Has more standards and covers more topics. |
VAS still lacks many standards, which can be temporarily guided by materials from the Ministry of Finance. |
|
Fair value |
IFRS uses the fair value in most cases, there are a lot of guidelines involved. |
VAS is currently leaning towards using the Historical cost instead. |
|
Components of financial statements |
A complete set of financial statements is made up of 5 components: – Statement of Financial Position – Profit, loss and other comprehensive income* – Statement of Cash Flows – Notes to Financial Statements – Statement of Changes in Owner's Equity * Business can separate the Profit and Loss Statement and Other comprehensive income statement. |
Components of the financial statements consist of: – Statement of Financial Position – Profit and Loss Statement – Statement of Cash Flows – Notes to Financial Statements Statement of Changes in Owner's Equity is presented in Notes to Financial Statements |
|
Presentation and Disclosure |
Compared to VAS, the Presentation and Disclosure requirements in IFRS are much detailed and complete. |
Fewer requirements and less complicated compared to IFRS |
2. Comparison between IFRS and VAS by reconciling items of financial statements
The comparison is presented here.
3. Comparison between IFRS and VAS by reconciling each individual standard, and Notes for conversion from VAS to IFRS.
| IFRS | VAS equivalent | Focus | Click the link hereunder to see details |
| IAS 1 | VAS 21 | Presentation of Financial Statements | IAS 1 |
| IAS 7 | VAS 24 | Statement of Cash Flows | (*) |
| IAS 8 | VAS 29 | Accounting Policies, Changes in Accounting Estimates and Errors | (*) |
| IAS 10 | VAS 23 | Events after the Reporting Period | (*) |
| IAS 20 | No equivalent VAS | Accounting for Government Grants and Disclosure of Government Assistance | (*) |
| IAS 29 | No equivalent VAS | Financial Reporting in Hyperinflationary Economies | (*) |
| IAS 32 | No equivalent VAS | Financial Instruments: Presentation | (*) |
| IAS 24 | VAS 26 | Related Party Disclosures | (*) |
| IAS 33 | VAS 30 | Earnings Per Share | (*) |
| IAS 34 | VAS 27 | Interim Financial Reporting | (*) |
| IFRS 1 | No equivalent VAS | First-time Adoption of IFRS | IFRS 1 |
| IFRS 7 | No equivalent VAS | Financial Instruments: Disclosures | IFRS 7 |
| IFRS 8 | VAS 28 | Operating Segments | (*) |
| IFRS 17 | VAS 19 | Insurance Contracts | IFRS 17 |
| IAS 2 | VAS 2 | Inventories | (*) |
| IAS 12 | VAS 17 | Income Taxes | IAS 12 |
| IAS 16 | VAS 3 | Property, Plant and Equipment | IAS 16 |
| IAS 19 | No equivalent VAS | Employee Benefits | IAS 19 |
| IAS 23 | VAS 16 | Borrowing Costs | (*) |
| IAS 36 | No equivalent VAS | Impairment of Assets | (**) |
| IAS 37 | VAS 18 | Provisions, Contingent Liabilities and Contingent Assets | IAS 37 |
| IAS 38 | VAS 4 | Intangible Assets | (*) |
| IAS 40 | VAS 5 | Investment Property | (*) |
| IAS 41 | No equivalent VAS | Agriculture | (**) |
| IFRS 2 | No equivalent VAS | Share-based Payment | (**) |
| IFRS 5 | No equivalent VAS | Non-current Assets Held for Sale and Discontinued Operations | (**) |
| IFRS 6 | No equivalent VAS | Exploration for and Evaluation of Mineral Resources | (**) |
| IFRS 9 | No equivalent VAS | Financial Instruments | IFRS 9 |
| IFRS 13 | No equivalent VAS | Fair Value Measurement | IFRS 13 |
| IFRS 15 | VAS 14 | Turnover and Other Incomes | IFRS 15 |
| IFRS 16 | VAS 6 | Leases | IFRS 16 |
| IAS 21 | VAS 10 | The Effects of Changes in Foreign Exchange Rates | (*) |
| IAS 27 | No equivalent VAS | Separate Financial Statements | IAS 27 |
| IAS 28 | VAS 7, VAS 8 | Investments in Associates and Joint Ventures | IAS 28 |
| IFRS 3 | VAS 11 | Business Combinations | IFRS 3 |
| IFRS 10 | VAS 25 | Consolidated Financial Statements | IFRS 10 |
| IFRS 11 | VAS 8 | Joint Arrangements | (*) |
| IFRS 12 | No equivalent VAS | Disclosure of Interests in Other Entities | (**) |
(*) There is no detailed comparison as the difference is negligible
(**) No VAS equivalent.
English versions of the International Accounting Standards and its Guidelines can be viewed and downloaded here.