What is IAS 38 and how does it work?

The IAS 38 is a well-known phenomenon among people who own a company. In the Netherlands, it is laid down by law that every company must be able to publish its financial situation. Especially when it comes to companies that have shareholders. In the case of these companies, it is mainly important because in this way investors can make a better assessment of whether it is interesting to buy shares. Furthermore, governments and public authorities themselves must be able to check whether fraud is being committed in the area of finance. The reporting of this financial information must be shared through a certain system that all companies must adhere to. In this way, it is a lot easier for all the stakeholders. So it is clear to have a certain common thread in this that everyone can adhere to. A lot of people often forget how important this is. IAS 38 is mainly based on a certain software. In this text we will further explain what exactly IAS 38 entails, after which we will refer to a company that has even more knowledge about this. If you also own a company and are interested in this topic, we advise you to read on. We wish you a lot of reading pleasure with this text.

Everything you need to know about IAS 38

For companies, governments and public authorities alike, it is important to have some form of reporting that can be generalized. This is where IAS 38 comes in. Every company has a certain set of financial statements that make it transparent how the company has performed based on its finances. This includes some standard things like profit , revenue and reserves that a firm has accumulated. In the past everyone did the external reporting in their own way, but since a number of years a number of people have decided that this must change. This has meant that a certain clarity has been provided to those who need it. Namely, people who work in the financial department of a certain company. These employees are required to prepare annual accounts and must determine which tools they can use for this purpose. In addition, there are many other ways to do external reporting. However, the IAS 38 software is one of the most advanced programs when it comes to this area. This software has become popular there a number of important points:

  • Reliable
  • Relevant
  • Transparent

Data should be reliable and transparent. This way every shareholder knows how the company is doing and they can make objective decisions.

More information?

IAS 38 can sometimes be quite complex, but we hope to have made it clear in this text that sometimes this is not so bad. It is not often that people know exactly how this works, while it can be quite important for certain groups of people. Fortunately, there are plenty of companies on the Internet that can explain this in detail. For a reliable website that has actually been providing good information in the area of IAS 38 for years, we would like to refer you to annualreporting.info.

Leave a Reply

Your email address will not be published. Required fields are marked *