Difference between NIC and IFRS
The two terms are completely different, but can be easily confused as they represent apparently similar concepts.
IAS
Also called International Accounting Standards. Establishes that since 2005 the consolidated annual accounts prepared by companies that have securities admitted to trading in a regulated market. These accounts are formulated according to international accounting standards adopted by the European Union.
Its purpose is to avoid duality in the financial statements of Spanish companies. It increases the transparency and comparability of the accounts between the companies of the European Union.
It founds a standard in the information in which the financial statements are presented and the way in which the information should appear in the financial statements. They are not physical laws but necessary according to commercial experiences. They are high quality accounting standards oriented especially towards investors to reflect the economic essence of business operations. It presents a picture of the financial situation of a company.
IFRS
Also known as International Financial Reporting Standards (IFRS) are technical accounting standards adopted by the IASB, a private institution based in London. They are International Standards in the development of accounting activity and represent a manual on how to review accounting in an acceptable way before the world.
They are used in different parts of the world and since March 28, 2008, 75 countries have made the use of IFRS mandatory.
Differences between NIC and IFRS
- The IAS are standards of the financial statements of the European Union. They are usually applied by those organizations and companies in negotiations between the countries that make up Europe. They are not mandatory, but they are necessary in business relationships.
- IFRS are international standards adopted by various countries for the presentation of the financial statements of their companies. These are standards adopted by more than 75 species.
