What is IFRS ?

                                           What is IFRS ?



The International Financial Reporting Standards (IFRS) is an internationally recognized set of accounting standards used to prepare and report financial statements. It is a single set of accounting standards that applies in more than 140 countries, including those in the European Union (EU), the United Kingdom (UK), Asia, Africa, and Australasia.

IFRS standards are administered and regulated by the International Accounting Standards Board (IASB) based in London, England. The standards provide guidance on how to identify, measure, and report different types of transactions. They require that companies present consistent information so that users can accurately compare their financial performance across different companies and industries.

IFRS accounting provides a framework for businesses to disclose a large amount of information so their financial positions are more transparent. This opens up a world of possibilities, especially when linked with other forms of financial analysis such as data analytics. Such transparency benefits lenders, investors, shareholders, and other stakeholders who rely on trustworthy and reliable financial information.

IFRS standards are significantly different from other countries' Generally Accepted Accounting Principles (GAAP). IFRS standards focus more on the substance of transactions as opposed to their form, allowing greater flexibility for companies to restructure and interpret events differently. In contrast to GAAP, IFRS also allows for fair value accounting, which means assets and liabilities can be re-measured at their current market value. Such flexibility enables businesses to better assess their performance and identify areas for improvement.

In conclusion,  IFRS provides a set of comprehensive accounting standards that are accepted around the world and have been developed to meet the needs of both business and users. It offers companies the opportunity to develop a wide range of financial statements, leveraging this transparency to build trust and credibility with stakeholders. Its use of fair value accounting allows companies to gain a deeper understanding of their financial position, making it easier to make informed decisions.