IFRS Standards

Understanding IFRS Standards: A Guide for Businesses and Professionals

International Financial Reporting Standards (IFRS) are globally recognized accounting principles that enhance transparency, consistency, and comparability in financial reporting. Businesses adopting IFRS ensure compliance with international best practices, which is essential for growth and global investment opportunities.

Key IFRS Standards Explained

๐Ÿ”น IFRS 1 โ€“ First-time Adoption of IFRS
Guides companies transitioning from local GAAP to IFRS, ensuring a smooth and standardized shift.

๐Ÿ”น IFRS 2 โ€“ Share-based Payment
Regulates the recognition of stock options and other share-based transactions in financial statements.

๐Ÿ”น IFRS 3 โ€“ Business Combinations
Sets principles for reporting mergers and acquisitions, emphasizing fair valuation of acquired assets.

๐Ÿ”น IFRS 5 โ€“ Non-current Assets Held for Sale and Discontinued Operations
Specifies how to classify and report assets intended for sale or operations that are discontinued.

๐Ÿ”น IFRS 6 โ€“ Exploration for and Evaluation of Mineral Resources
Provides guidelines for reporting exploration and evaluation costs in the mining and energy sectors.

๐Ÿ”น IFRS 7 โ€“ Financial Instruments: Disclosures
Mandates transparency in financial risk management and financial instruments used by businesses.

๐Ÿ”น IFRS 8 โ€“ Operating Segments
Requires entities to disclose financial performance based on different business segments.

๐Ÿ”น IFRS 9 โ€“ Financial Instruments
Outlines accounting treatment for financial assets and liabilities, including impairment models.

๐Ÿ”น IFRS 10 โ€“ Consolidated Financial Statements
Defines when and how a parent company must consolidate its financial statements with subsidiaries.

๐Ÿ”น IFRS 11 โ€“ Joint Arrangements
Governs the accounting for joint ventures and collaborations between businesses.

๐Ÿ”น IFRS 13 โ€“ Fair Value Measurement
Establishes a framework for measuring and disclosing fair value across financial statements.

๐Ÿ”น IFRS 15 โ€“ Revenue from Contracts with Customers
Standardizes revenue recognition principles, ensuring accurate and consistent reporting.

๐Ÿ”น IFRS 16 โ€“ Leases
Requires lessees to recognize most leases as assets and liabilities on the balance sheet.

Why IFRS Matters for Your Business

Adopting IFRS improves financial transparency, investor confidence, and comparability with global competitors. Whether you're a startup, a growing enterprise, or a multinational corporation, compliance with IFRS enhances credibility and financial decision-making.

๐Ÿ“ข Stay Updated with Fanoos Accounting Services (FAS)
At FAS, we help businesses implement IFRS efficiently. Contact us for expert financial reporting, compliance, and advisory services.

๐Ÿ”— Visit our website for more insights and updates!

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Classification of Organizations Under IFRS and Comparison with Afghanistanโ€™s Business Environment

1. IFRS-Based Classification of Organizations

International Financial Reporting Standards (IFRS) categorize organizations based on their legal structure, financial reporting obligations, and ownership model. These classifications impact accounting policies, tax treatments, and regulatory compliance.

1.1 Public Sector Entities (PSEs) โ€“ IFRS for Public Sector Accounting (IPSAS)

Public sector entities are government-controlled organizations responsible for public service delivery and national economic management. These entities follow International Public Sector Accounting Standards (IPSAS) instead of IFRS.

๐Ÿ”น IFRS Definition:

  • Funded primarily through taxation and government revenues.
  • Not profit-oriented but accountable for public financial transparency.
  • Uses accrual-based IPSAS for financial reporting.

๐Ÿ”น Comparison with Afghanistan:

  • Ministry of Finance (MoF) โ€“ National budget control and fiscal policy.
  • Da Afghanistan Bank (DAB) โ€“ Central bank regulating monetary policy.
  • State-Owned Enterprises (SOEs) like Afghan Telecom (telecom) and Pashtany Bank (banking) operate commercially but under government control.

๐Ÿ’ก Key Difference: In Afghanistan, SOEs operate under hybrid financial models, often using modified cash accounting rather than full IPSAS compliance.


1.2 Not-for-Profit Organizations (NPOs) โ€“ IFRS for Non-Profit Entities

Non-profits exist to serve public or social causes, funded through donations, grants, and membership contributions.

๐Ÿ”น IFRS Definition:

  • Not focused on profit but must maintain financial accountability.
  • Follow fund accounting to track restricted and unrestricted funds separately.
  • IFRS doesn't directly apply but IFRS for SMEs may be used for financial statements.

๐Ÿ”น Comparison with Afghanistan:

  • Shuhada Organization โ€“ Focuses on education and healthcare.
  • Afghanistan Red Crescent Society โ€“ Humanitarian aid.
  • ACCI (Afghanistan Chamber of Commerce & Investment) โ€“ Business advocacy.

๐Ÿ’ก Key Difference: Afghan NPOs rely heavily on donor funding, which requires donor-specific financial reporting rather than full IFRS-based statements.


1.3 For-Profit Organizations โ€“ IFRS for Commercial Enterprises

For-profit businesses range from small sole proprietorships to multinational corporations, and IFRS classifies them based on ownership structure, liability, and reporting obligations.

1.3.1 Sole Proprietorships & Partnerships (Unincorporated Entities) โ€“ IFRS for SMEs

๐Ÿ”น IFRS Definition:

  • No legal distinction between business and owner.
  • Use simplified accounting (cash or accrual basis) under IFRS for SMEs.

๐Ÿ”น Comparison with Afghanistan:

  • Local traders in Mandawi Market (Kabul) โ€“ Textile and general merchandise traders.
  • Small transport businesses โ€“ Owned by individuals.
  • Partnerships in saffron and dried fruit exports โ€“ Jointly managed by Afghan entrepreneurs.

๐Ÿ’ก Key Difference: Afghanistanโ€™s small businesses often rely on cash-based accounting, while IFRS for SMEs recommends accrual accounting.


1.3.2 Private Companies (Ltd) โ€“ IFRS for SMEs & Full IFRS

๐Ÿ”น IFRS Definition:

  • Legally separate from owners, offering limited liability.
  • IFRS for SMEs applies unless it grows large enough for full IFRS.

๐Ÿ”น Comparison with Afghanistan:

  • Roshan Telecom โ€“ Telecom sector leader.
  • Bayat Group โ€“ Diversified business (media, construction, energy).
  • Ghawarsha Food Industries โ€“ Processed food manufacturer.

๐Ÿ’ก Key Difference: Afghan private firms follow local accounting standards with limited IFRS adoption due to regulatory constraints.


1.3.3 Public Companies (PLC) โ€“ Full IFRS Compliance

๐Ÿ”น IFRS Definition:

  • Shares traded publicly, requiring full IFRS reporting.
  • Strict financial disclosure for investor protection.

๐Ÿ”น Comparison with Afghanistan:

  • Afghanistan International Bank (AIB) โ€“ Fully compliant with IFRS.
  • Maiwand Bank โ€“ Another IFRS-adopting Afghan bank.
  • Ariana Afghan Airlines โ€“ Government-owned but operates commercially.

๐Ÿ’ก Key Difference: Afghanistan lacks a stock exchange, so few companies follow full IFRS. Instead, banks and large firms adopt IFRS voluntarily for international credibility.


2. Key Differences: IFRS vs. Afghanistanโ€™s Business Environment

Category IFRS-Based Organizations Afghanistan-Specific Comparison
Public Sector (IPSAS) Full IPSAS compliance for government entities Mostly modified cash basis accounting
Non-Profit (Fund Accounting) Uses fund-based accounting with IFRS for SMEs Donor-driven reporting, not full IFRS
Sole Proprietorships IFRS for SMEs (accrual-based) Mostly cash-based accounting
Private Limited Companies IFRS for SMEs or Full IFRS Partially adopted (basic IFRS principles)
Public Limited Companies Full IFRS (strict investor reporting) Limited due to lack of stock exchange

3. What Should Afghan Businesses Do?

โœ… For Public Entities:

  • Move towards IPSAS compliance for better transparency.
  • Adopt accrual-based budgeting for improved financial control.

โœ… For Non-Profit Organizations:

  • Implement IFRS for SMEs-based financial reporting.
  • Improve grant accountability through standardized fund tracking.

โœ… For Private Sector Businesses:

  • Train finance teams on IFRS for SMEs.
  • Larger companies should adopt full IFRS for investor confidence.

4. How Can Fanoos Accounting Services (FAS) Help?

At Fanoos Accounting Services (FAS), we help Afghan organizations:
๐Ÿ”น Implement IFRS for SMEs for better financial reporting.
๐Ÿ”น Train accounting teams to align with global standards.
๐Ÿ”น Prepare financial statements based on IFRS or donor compliance.

๐Ÿ“ž Contact us for expert IFRS advisory tailored to Afghanistanโ€™s business needs!

Your Trusted Financial Partner

Welcome to Fanoos Accounting Services (FAS) โ€“ Your Trusted Financial Partner

Are you looking for reliable, professional, and expert accounting solutions? Fanoos Accounting Services (FAS) is your trusted partner for financial management, bookkeeping, auditing, and tax consulting. With years of experience in the Afghan market and international expertise, we help businesses streamline their finances with accuracy and efficiency.

Why Choose Fanoos Accounting Services?

โœ” Expertise & Experience: Our team consists of skilled professionals with deep knowledge of financial regulations and industry standards.
โœ” Comprehensive Accounting Solutions: From bookkeeping to financial analysis, we cover everything your business needs.
โœ” Technology-Driven Services: We leverage modern accounting tools like QuickBooks, Keeper, and Dext for efficient financial management.
โœ” Outsourced Accounting for Global Firms: We offer outsourced bookkeeping services for firms in Australia, Canada, the USA, and the UK to help them review and improve financial records.


Our Services

๐Ÿ“Š Bookkeeping & Financial Reporting

Accurate financial records are key to business success. We offer error-free bookkeeping with monthly reports to help you make informed decisions.

๐Ÿงพ Tax Consulting & Compliance

We ensure your business complies with local and international tax laws, maximizing deductions and minimizing liabilities.

๐Ÿ“ˆ Audit & Financial Review

Our independent auditing services enhance financial transparency and accountability.

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Save time and avoid payroll errors with our automated payroll processing and compliance solutions.

๐ŸŒ Outsourced Accounting for Global Clients

Are you an accounting firm in Australia, Canada, the USA, or the UK? Partner with us to review your clientsโ€™ QuickBooks files using Keeper & Dext, ensuring 100% financial accuracy.


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At Fanoos Accounting Services, we integrate advanced AI-driven accounting solutions like Keeper and Dext to automate transaction reviews and ensure error-free bookkeeping. Whether you are a small business or a multinational firm, our expertise ensures smooth financial operations and regulatory compliance.


Join the Fanoos Accounting Community

๐Ÿ”น Follow Our Blog: Stay updated with expert insights on financial trends, tax policies, and accounting strategies.
๐Ÿ”น Sign Up for Our Webinars: Learn from industry experts about modern accounting practices.
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๐Ÿ“ง Email: info@fanoosaccounting.com
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USAID Closure!

ย A Major Shift with Global Economic Implications

Introduction In a surprising turn of events, the United States Agency for International Development (USAID) has officially closed its headquarters in Washington, D.C., following an executive decision endorsed by former President Donald Trump and suggested by Elon Musk, head of the Department of Government Efficiency (DOGE). This unprecedented move has sent shockwaves through the international community, raising concerns about its far-reaching impact on global economic stability, particularly in vulnerable regions like Afghanistan. The Decision and Its Rationale Elon Musk, known for his disruptive innovations in technology and space exploration, criticized USAID as a "criminal organization," claiming that less than 10% of its budget effectively aids those in need. In line with Musk's recommendation, Trump approved the shutdown, citing the need to reduce government expenditures and eliminate inefficiencies. The closure resulted in the furlough of hundreds of contractors, suspension of foreign aid programs, and the deactivation of USAID's digital platforms. Global Economic Implications
  1. Reduction in Foreign Aid: The immediate effect is a significant reduction in foreign aid, particularly in developing countries reliant on USAID for humanitarian assistance, health programs, and economic development projects.
  2. Destabilization of Emerging Economies: Countries facing political instability and economic hardship, such as Afghanistan, could experience worsening conditions. The absence of USAID funding may lead to decreased support for education, healthcare, infrastructure, and governance initiatives.
  3. Impact on Global Markets: The withdrawal of U.S. aid could disrupt global supply chains, particularly in sectors dependent on international development projects. This may lead to increased economic volatility in regions that serve as critical nodes in these networks.
Impact on Afghanistan Afghanistan has been one of the largest recipients of USAID support, benefiting from programs focused on:
  • Education and Women's Empowerment: Reduced funding will jeopardize ongoing efforts to improve literacy rates and support women's participation in the workforce.
  • Healthcare Services: Critical health programs, including maternal and child health services, may face severe budget cuts, impacting public health outcomes.
  • Agricultural Development: Farmers relying on USAID-backed initiatives for modern farming techniques and market access will struggle to maintain productivity.
  • Governance and Stability: The reduction in governance programs could hinder efforts to build transparent institutions, potentially increasing the risk of corruption and political instability.
Our Experience with USAID: A Reflection At Fanoos Accounting Services, we had the privilege of collaborating with USAID on several impactful projects. These experiences allowed us to contribute meaningfully to Afghanistan's development, particularly in areas related to financial management, capacity building, and economic sustainability. The partnerships fostered growth, innovation, and hope within our communities. With the closure of USAID, we find ourselves not only facing professional uncertainty but also a deep sense of loss. The programs we supported were more than just projects; they represented dreams, aspirations, and tangible improvements in the lives of countless Afghans. The images of our past experiences with USAID serve as powerful reminders of the milestones achieved and the communities uplifted. This closure leaves us saddened and disheartened, as we reflect on the significant strides made and the potential now left unrealized. Nevertheless, our commitment to fostering economic resilience and community development remains unwavering. We honor the legacy of these collaborations by continuing to support initiatives that embody the spirit of growth and empowerment. The Way Forward With USAID's closure, Afghanistan and other affected countries must explore alternative strategies:
  • Diversifying Aid Sources: Seeking support from other international donors, NGOs, and private sector partnerships.
  • Strengthening Local Economies: Investing in self-sustaining economic activities to reduce reliance on foreign aid.
  • Promoting Regional Cooperation: Enhancing trade and economic ties with neighboring countries to foster regional stability.
Conclusion The closure of USAID marks a pivotal moment in global economic history. Its ripple effects will be felt across continents, particularly in fragile states like Afghanistan. As the world adjusts to this new reality, the resilience and adaptability of affected nations will determine their ability to navigate these challenging times. At Fanoos Accounting Services, we will continue to monitor these developments, providing insights and analysis to help businesses and individuals understand and adapt to the evolving global landscape.

CPA Afghanistan Membership

Boost Your Accounting Career with CPA Afghanistan Membership

Are you an accounting professional looking to elevate your career? Becoming a member of Certified Professional Accountants (CPA) Afghanistan can be a game-changer. CPA Afghanistan, established in 2013 under the Ministry of Finance, ensures that accountants in Afghanistan adhere to global standards, promoting transparency, trust, and excellence in the financial sector.

Why Join CPA Afghanistan?

1. Recognized Professional Qualification: CPA Afghanistan recognizes globally respected qualifications, including ACCA, CPA Australia, CPA Canada, ICAEW, and more. This global recognition enhances your professional credibility. 2. Career Advancement: Membership opens doors to networking events, professional development programs, and exclusive job opportunities, helping you stay competitive in the industry. 3. Continuous Professional Development (CPD): CPA Afghanistan mandates CPD, ensuring that members are always updated with the latest industry practices. 4. Regulatory Support: As a CPA member, you receive guidance on professional ethics, compliance, and regulatory requirements, safeguarding your professional integrity.

Membership Categories

  • Individual Membership (CPA): For professionals meeting educational, examination, and practical experience requirements.
  • Fellow Membership (FCPA): Awarded automatically after seven years of active membership with continuous CPD compliance.

How to Apply?

  1. Meet the Eligibility Criteria: Hold a recognized qualification, have at least three years of relevant work experience, and a clean legal record.
  2. Complete the Online Registration: Submit your application via the CPA Afghanistan website.
  3. Pay the Required Fees: Fees vary for local and international members.
  4. Membership Certificate Issuance: Upon approval, receive your official CPA membership certificate.

Why Choose Fanoos Accounting Services?

At Fanoos Accounting Services, we guide aspiring accountants through the CPA membership process. Whether you need assistance with documentation, meeting CPD requirements, or understanding regulatory compliance, our experts are here to help. You can find our membership and licensing framework through following linkย https://cpa.mof.gov.af/index.php/membership-and-licensing-framework/.

Exit From Kabul

Syed Bilal Hashmi ACCA made the difficult decision to leave Afghanistan in December 2021, uprooting his family to seek a new life in Ireland. As the deputy auditor general of Afghanistan, he had dedicated over 12 years to his career, but the circumstances under Taliban rule made it impossible for him to stay.

When Kabul fell, Hashmi initially tried to continue his work but soon realized he had to leave for the sake of his family. They departed without saying goodbye, carrying only a few belongings. Their journey took them to Dubai, where they lived in a refugee camp for 11 months before finally settling in Ireland. Thanks to the support from ACCA, Hashmi was able to secure a position as an audit senior at Dillon Kelly Cregan, a Dublin-based accountancy firm. Ireland offered a fresh start with strong education and healthcare systems for his children. Hashmi's wife played a crucial role in easing their transition, teaching their children English, and helping them adapt to their new environment. His children are now in school, with one even launching a YouTube channel. Hashmiโ€™s professional journey began in Kabul in 2009, working for Zia Massoud. He later became CFO of Kabul Bank, which was under receivership, before moving to Malaysia to complete his ACCA qualification. Upon returning to Afghanistan, he took on leadership roles, including deputy head of CPA Afghanistan, contributing to the advancement of the accounting profession in the country. Under his leadership, Afghanistan's first accountancy law was passed, a bachelorโ€™s degree program in accounting was launched at Kabul University, and international recognition was achieved through ACCA's support. His work was not just a profession but a mission to fight corruption and bring transparency to Afghanistan. While many of his former colleagues have been evacuated, some remain in Kabul, making communication difficult. Mohammad Aman Ahmadi, who met Hashmi multiple times at ACCA events held at Kabul Intercontinental Hotel and the Ministry of Finance, speaks highly of his professionalism and ethical conduct. Hashmi's dedication to the accounting profession and his strong moral compass were evident in every interaction. Despite the new opportunities in Ireland, Hashmi still hopes to return to Afghanistan if conditions improve, continuing his mission to strengthen the country's financial and auditing institutions. For now, he is focused on building his career and supporting his family in their new home. For more information visit: https://abmagazine.accaglobal.com/global/articles/2023/jan/interviews/exit-from-kabul.html

Astranti

Astranti โ€“ Your Ultimate Partner for ACCA and Accounting Success

Who We Are

Astranti is a leading provider of professional accounting and finance training, specializing in ACCA, CIMA, and financial management courses. With a commitment to high-quality education and practical learning, Astranti helps students and professionals achieve their career goals with ease.

Why Choose Astranti?

Astranti is designed to support ACCA students and accounting professionals with the best study materials, expert guidance, and a proven track record of success. Hereโ€™s why Astranti stands out:

โœ… Comprehensive ACCA Study Support

Astranti provides in-depth study materials, including video tutorials, study texts, revision notes, and exam practice questions to help ACCA students master their exams with confidence.

โœ… 100% Online & Flexible Learning

With Astrantiโ€™s online learning platform, you can study anytime, anywhere, making it perfect for working professionals balancing studies with their career.

โœ… Expert-Led Training

Astranti courses are developed and delivered by industry professionals with years of experience in accounting and finance, ensuring students receive high-quality education aligned with industry needs.

โœ… Mock Exams & Exam Practice Questions

Astranti offers full-length mock exams, case studies, and practice questions to prepare students for real ACCA exams, improving their chances of passing on the first attempt.

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Astranti provides free introductory study materials for ACCA and CIMA students, allowing them to experience the quality of resources before committing to full courses.

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Compared to other training providers, Astranti offers cost-effective study solutions without compromising quality, making professional qualifications more accessible.

Who Can Benefit from Astranti?

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ACCA PER

Unlock Your ACCA PER with Professional Guidance

As an ACCA student, completing your Practical Experience Requirement (PER) is a crucial step toward becoming a qualified accountant. Itโ€™s an opportunity to gain real-world experience, refine your skills, and demonstrate your ability to meet ACCAโ€™s high standards. As a member of the Institute of Public Accountants (IPA) and a seasoned professional, I offer ACCA students the unique chance to fulfill their PER with confidence and the right guidance. Here's how I can help:

What Is the ACCA PER?

The ACCA PER consists of three core elements:
  1. 36 Months of Relevant Work Experience: Gain hands-on experience in accounting or finance-related roles.
  2. Performance Objectives (POs): Achieve 9 performance objectives (5 essential and 4 from your chosen area).
  3. Record Keeping: Maintain accurate and complete records of your experience through the ACCA MyExperience tool.

How I Can Support You

With my expertise in accounting, finance, and compliance as an IPA member, I can:
  1. Provide Supervised Experience
    • Offer practical accounting tasks to help you develop and demonstrate essential skills.
    • Ensure your work aligns with ACCAโ€™s performance objectives.
  2. Mentorship & Coaching
    • Guide you through your PER journey with personalized advice.
    • Help you understand and document your experience effectively.
  3. Exposure to Real-World Accounting Practices
    • Work on projects involving QuickBooks, Xero, and tax compliance to enhance your skills.
    • Learn best practices in financial reporting, reconciliation, and auditing.
  4. Certification & Review
    • Verify and sign off on your work experience as a qualified supervisor, ensuring it meets ACCAโ€™s standards.

Why Choose Me?

  • Credibility: As an IPA member, I bring recognized expertise and professional integrity.
  • Experience: Iโ€™ve worked with a variety of clients and industries, equipping me to guide you effectively.
  • Commitment: My mission is to help aspiring accountants achieve their career goals.

Letโ€™s Get Started!

Are you ready to take the next step toward completing your ACCA PER? Let me help you navigate this important milestone with clarity and success. Contact Me Today: ๐Ÿ“ง Email: info@fanoosaccounting.com ๐Ÿ“ฑ WhatsApp: +93799764533

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