![]() The IFRS are redacted by an international authority based in London (IASB) and they consist in: These international standards should be adopted when the public has interest to see the balance sheet redacted with these principles, for example when a company is listed on an exchange market, or when a company is a subsidiary of another company where IFRS are also used. However, they are not currently the only ones available: the IFRS (International Financial Reporting Standards) are considered the best practice in term of accountancy. Local authorities have specified through the law the accounting principles that every local company has to adopt, in order to produce the balance sheet and to determine the final amount of taxes to pay. These principles are specified by local or international authorities. The estimation of these values cannot be left to subjective judgment, and over the years rules and principles have emerged to assist in this task. We are referring to funds, possible future costs or, simply, the value of the goods in a warehouse at a certain date. Other amounts have to be estimated in the best possible way, for the reason the exact to sum to register is not yet known. ![]() There are amounts that can be immediately determined, for example the amount of invoice received or a paid sum. Accounting is a matter of precision and estimation: two terms that could be easily the opposite of each other. It takes a lot of work to create a balance sheet that respects civil and fiscal laws.
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