IFRS are a set of international accounting standards that specify how companies should prepare and present their financial statements. They aim to provide a consistent and transparent framework within which companies can report their financial performance.
IFRS are developed by the International Accounting Standards Board (IASB), and are adopted by companies in over 120 countries around the world. In the European Union, all listed companies are required to prepare their financial statements in accordance with IFRS.
There are a number of key benefits of IFRS, including:
- Improved comparability of financial statements: IFRS provide a common language for companies to communicate their financial performance, making it easier for investors to compare companies across borders.
- Increased transparency: IFRS promote greater transparency of company financial statements, providing stakeholders with a clear picture of a company's financial position.
- Reduced cost and complexity: IFRS can help to reduce the cost and complexity of financial reporting, by providing a more streamlined and consistent approach.
What are the International Financial Reporting Standards?
The International Financial Reporting Standards (IFRS) are a set of accounting standards developed by the International Accounting Standards Board (IASB). They are designed to provide a common framework for financial reporting by companies and other entities around the world.
The IFRS are issued under the auspices of the International Organization of Securities Commissions (IOSCO), and are used by over 120 countries. In the European Union, all listed companies are required to use IFRS for their consolidated financial statements.
The aim of the IFRS is to improve the comparability of financial statements across different jurisdictions, and to provide a common set of standards for financial reporting. The standards are designed to be principles-based, rather than rules-based, so that companies can exercise judgement in applying them.
The IFRS are constantly being updated and revised, in order to keep pace with the changing needs of the global economy. How many IFRS standards are there? According to the International Accounting Standards Board (IASB), there are currently 16 IFRS standards that are issued and effective. However, the IASB is constantly issuing new standards and amendments to existing standards, so this number is subject to change.
How do I get IFRS standards?
There is no one answer to this question as there is no single body that oversees and issues IFRS standards. However, there are a number of ways that you can go about getting hold of IFRS standards.
One way is to contact the International Accounting Standards Board (IASB) directly. The IASB is the body that develops and issues IFRS standards. You can contact the IASB by email ([email protected]) or by telephone (+44 (0)20 7246 6111).
Another way to get hold of IFRS standards is to contact your national accounting body. Many national accounting bodies subscribe to the IASB's standards and make them available to their members.
Finally, you can also purchase IFRS standards directly from the IASB. The IASB offers a range of publications, including a pocket guide to IFRS standards and a comprehensive set of all IFRS standards.
What is the main objectives of IFRS?
There are a number of objectives that have been set out for IFRS, which include:
- To provide a set of high-quality, global accounting standards that promote transparency, comparability and understanding of financial statements.
- To help businesses operate in multiple jurisdictions by reducing the compliance costs associated with having to prepare financial statements in accordance with multiple sets of accounting standards.
- To provide investors with reliable financial information that can be used to make investment decisions.
- To promote confidence in the global financial markets by providing a consistent and high-quality set of accounting standards.