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PREFACE
This is indeed an exciting time to prepare an updated and expanded edition of this book. Since the
issuance of the first edition, International Financial Reporting Standards (IFRS) have continued to extend its
reach as the recognized set of accounting standards in an increasing number of jurisdictions around the globe.
This trend is set to continue . More countries have announced their intention to adopt IFRS in the next few
years. Furthermore, the November 15,2007 announcement by the US Securities and Exchange Commission
(SEC) to allow foreign private issuers to enter the US capital market using IFRS-compliant financial
statements (without reconciling to US GAAP) came as a surprise to many in international financial circles
and was considered a historic move on the part of the US SEC; this favorable nod by the US SEC to the
IASB standards may undoubtedly result in even greater momentum for further acceptance of IFRS globally .
With such extraordinary achievements to its credit the IASB feels confident that more and more global
players will sooner or later convert to IFRS. In fact, major economic players such as Canada and India have
already announced their plans to go the "IFRS route" by 20 II. Commenting on how many more countries
are expected to adopt IFRS by 2011, Sir David Tweedie, chairman of the IASB, remarked, "we reckon by
about 2011 there'll be I50-all the major economies"
(Accountancy,
January 2008).
Compared with the first edition, we have expanded the book by including extracts from published
financial statements illustrating the application of IFRS. This will help readers better understand how the
principles may be applied in practice. Additionally , we have updated the book to incorporate brief
explanations of new and revised pronouncements, in particular IFRS 8, Operating Segments , and the revised
IFRS 2, IFRS 3, lAS I, lAS 23, lAS 27, and lAS 32 as well as IFRICs 10 to 14.
We received a good deal of positive feedback and praise from readers of the first edition . With the
changes to this second edition, we hope that readers will find this edition even more useful in navigating the
complex and changing landscape of IFRS. We continue to invite suggestions and comments for future
editions . As with the first edition, any views expressed in this publication are ours alone and do not
necessarily represent those of the firms or organizations of which we are part.
Abbas Ali Mirza
Magnus Orrell
Graham Holt
February 2008