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International Financial Reporting Standards (IFRS) are designed as a common global language for business affairs so that company accounts are understandable and comparable across international boundaries. They are a consequence of growing international shareholding and trade and are particularly important for companies that have dealings in several countries.
They are progressively replacing the many different national accounting standards. The rules to be followed by accountants to maintain books of accounts which is comparable, understandable, reliable and relevant as per the users internal or external.
Students are also required to choose and comment on a relevant IFRS standard either related to capital market or social accounting or environmental accounting.
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When an indirect ownership is present, why is a specific ordering necessary for determining the incomes of the component corporations?
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