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S997 Income Tax Act 2007, S1127 Corporation Act 2010

»Ê¹ÚÌåÓýapp term ‘international accounting standardsâ€� (IAS) has the same meaning for Income Tax and Corporation Tax purposes as Regulation (EC) No 1606/2002 of the European Parliament and the Council of 19 July 2002 on the application of international accounting standards.

»Ê¹ÚÌåÓýapp UK Endorsement Board (UKEB) influences, endorses and adopts new or amended IAS issued by the International Accounting Standards Board (IASB) for use by UK companies.

Where an IAS (as defined in BIM31015) has been adopted, where modification is made to the standard as part of the adoption process, accounts prepared with or without such modification are treated as prepared in accordance with IAS, for the purposes of UK CT.

»Ê¹ÚÌåÓýapp International Accounting Standards Board

»Ê¹ÚÌåÓýapp International Accounting Standards Board (IASB) is the standard-setting body of the IFRS Foundation, a non-governmental body which is committed to developing a single set of global accounting standards. »Ê¹ÚÌåÓýapp Board co-operates with national accounting standard setters to achieve convergence in accounting standards around the world.

»Ê¹ÚÌåÓýapp IASB publish:

• International Financial Reporting Standards, (designated e.g. IFRS 1, IFRS 2 etc),
• Exposure Drafts, and
• International Financial Reporting Interpretations Committee (IFRIC) Interpretations of International Financial Reporting Standards.

It is also responsible for standards still in issue published by its predecessor, the International Accounting Standards Committee (IASC), namely International Accounting Standards (designated e.g. IAS 38) and Standard Interpretation Committee (designated e.g. SIC 32) interpretations of IAS.

True and fair view

International accounting standards do not refer to a ‘true and fair view�, but instead contain a similar concept of ‘fair presentation�. IAS 1 Presentation of Financial Statements Paragraph 15 states that:

‘Financial statements shall present fairly the financial position, financial performance and cash flows of an entity. Fair presentation requires the faithful representation of the effects of transactions, other events and conditions in accordance with the definitions and recognition criteria for assets, liabilities, income and expenses set out in the Conceptual Framework for Financial Reporting (Conceptual Framework). »Ê¹ÚÌåÓýapp application of IFRSs, with additional disclosure when necessary, is presumed to result in financial statements that achieve a fair presentation.â€�

As with UK GAAP (BIM31115), you should consult a HMRC Advisory Accountant for help with the interpretation of particular standards.