IFRSlike

IFRSlike is a term used in accounting literature to describe a family of reporting frameworks that emulate the International Financial Reporting Standards (IFRS) in form and substance but are not themselves IFRS. These frameworks are typically developed by national standard-setters, professional bodies, or industry groups and are intended to provide familiar recognition, measurement, presentation, and disclosure principles while accommodating local legal or market needs.

Definition and scope: IFRSlike frameworks generally apply to financial statements prepared under an accrual basis and use IFRS-like terminology and concepts for assets, liabilities, income, and expenses. They may require substantial alignment with IFRS, but deviations can include simplified disclosures, optional exemptions from certain IFRS requirements, or alternative transition provisions.

Relationship to IFRS and adoption: IFRSlike is distinct from IFRS and is not issued by the International Accounting Standards Board. Adoption varies by jurisdiction and context; some authorities mandate IFRSlike for certain entities, while others permit it as an acceptable alternative or transitional framework pending full IFRS adoption. The IFRS Foundation typically does not oversee IFRSlike frameworks unless they are adopted as IFRS or IFRS-compatible standards.

Implementation considerations: Users should assess differences between IFRSlike and IFRS when comparing statements, as divergence can affect ratios, earnings, and asset valuation. Audit, assurance, and regulatory requirements may differ, and cross-border comparability can be limited.

Criticism and challenges: Critics argue that IFRSlike can fragment accounting practices, creating confusion and undermining comparability with IFRS financial statements. Governance, consistency of application, and the rigor of oversight are common points of concern.