What is IFRS ?
International Financial Reporting Standards (IFRS) are principles-based accounting standards and interpretations set out by the International Accounting Standards Board (IASB).
IFRSs are applied by many countries around the world. The aim of IFRS is to provide a global framework for how listed entities prepare their financial statements.
Worldwide adoption of the standards should improve the quality of financial reporting information. It should benefit users of financial statements, by reducing the costs of comparing alternative investments and improving the quality of financial reporting. It should also benefit companies, as investors are more willing to provide financing.
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.