International Financial Reporting Standards (IFRS)

International Financial Reporting Standards (IFRS),

Definition of International Financial Reporting Standards (IFRS):

  1. IFRS are designed to bring consistency to accounting language, practices and statements, and to help businesses and investors make educated financial analyses and decisions. The IFRS Foundation sets the standards to “bring transparency, accountability and efficiency to financial markets around the world… fostering trust, growth and long-term financial stability in the global economy.” Companies benefit from the IFRS because investors are more likely to put money into a company if the company's business practices are transparent.

  2. 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).

  3. International Financial Reporting Standards (IFRS) set common rules so that financial statements can be consistent, transparent and comparable around the world. IFRS are issued by the International Accounting Standards Board (IASB). They specify how companies must maintain and report their accounts, defining types of transactions and other events with financial impact. IFRS were established to create a common accounting language, so that businesses and their financial statements can be consistent and reliable from company to company and country to country.

How to use International Financial Reporting Standards (IFRS) in a sentence?

  1. IFRS were established to create a common accounting language, so business and accounts can be understood from company to company and country to country.
  2. Both companies and investors benefit from IFRS because people are more confident investing in a company if its business practices are transparent and reliable.
  3. The IFRS are set by the International Accounting Standards Board, an independent body of the IFRS Foundation, which provide updates, insights and guidance on the standards.

Meaning of International Financial Reporting Standards (IFRS) & International Financial Reporting Standards (IFRS) Definition