International Financial Reporting Standards (IFRS) are a set of accounting standards developed by the International Accounting Standards Board (IASB) that is becoming the global standard for the preparation of public company financial statements.
IFRS is particularly beneficial to large companies that have subsidiaries in different countries. Adopting a single set of global standards simplifies financial reporting, allowing management to use one reporting framework across the whole group.
Assessing IFRS Adoption:
In late 2012, the IFRS Foundation began working on a comprehensive pro- ject to assess progress toward the goal of global accounting standards, directed by this author. The project has three related objectives:
· To develop a central source of information to chart jurisdictional progress toward global adoption of a single set of financial reporting standards
· To respond to assertions that many national variations of IFRS exist around the world
· To identify how the IFRS Foundation can help countries progress on their path to adoption of IFRS.
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Guidelines and rules set by the International Accounting Standards Board (IASB) that companies and organizations can follow when compiling financial statements. The creation of international standards allows investors, organizations and governments to compare the IFRS-supported financial statements with greater ease. Over 100 countries currently require or permit companies to comply with IFRS standards. The International Financial Reporting Standards were previously called the International Accounting Standards (IAS). Organizations in the United States are required to use the Generally Accepted Accounting Principles (GAAP). See also International Accounting Standards Committee (IASC).
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