IFRS is the abbreviated form of International Financial Reporting Standards. The IFRS is a set of standards in accounting that was conceptualized by the International Accounting Standards Board or the IASB. The IFRS accounting has now become the standard in accounting that is being followed by companies all over the world. The IFRS is very beneficial in the formulation of the financial statement of a company. It ensures that the financial statements presented by companies around the globe are factual and free from any errors. The IFRS accounting reduces or eliminates completely the chances for error in the making of the company's financial statement, provided of course that the guidelines are strictly followed.
The IASB that created the IFRS is an independent accounting body that is London-based. It is made of 15 members that come from 9 different countries all over the world. It first began its operations in the year 2001. At present, there are 120 countries all over the world that require the use of IFRS accounting standards for companies that are locally listed. There are also 90 countries around the globe who have fully adapted the IFRS accounting standards. There are still more countries that are following suit so in a few years time there will be a significant increase in the number of countries that follow the IFRS standards.
A lot of countries are now considering the possibility of adopting the IFRS accounting standards because of its many advantages. Any company that adopts the IFRS accounting standards will be able to come up with a financial statement that is based on the standards that are also being followed by international companies from all over the world. This puts the company on the same level as its international competitors in terms of the presentation of financial statements.
For companies that have international branches, the IFRS accounting standards allow them to use one set of guidelines to follow for all their branches whether local or international. There is no need to use different accounting standards for local and international branches of the company since the IFRS accounting standard is accepted internationally. The IFRS accounting standard is a language that can be understood by foreign investors as they browse through the financial statement of the company. The audit and assurance services are a very important element that companies should follow if they desire to raise capital from foreign investors.
The IASB that created the IFRS is an independent accounting body that is London-based. It is made of 15 members that come from 9 different countries all over the world. It first began its operations in the year 2001. At present, there are 120 countries all over the world that require the use of IFRS accounting standards for companies that are locally listed. There are also 90 countries around the globe who have fully adapted the IFRS accounting standards. There are still more countries that are following suit so in a few years time there will be a significant increase in the number of countries that follow the IFRS standards.
A lot of countries are now considering the possibility of adopting the IFRS accounting standards because of its many advantages. Any company that adopts the IFRS accounting standards will be able to come up with a financial statement that is based on the standards that are also being followed by international companies from all over the world. This puts the company on the same level as its international competitors in terms of the presentation of financial statements.
For companies that have international branches, the IFRS accounting standards allow them to use one set of guidelines to follow for all their branches whether local or international. There is no need to use different accounting standards for local and international branches of the company since the IFRS accounting standard is accepted internationally. The IFRS accounting standard is a language that can be understood by foreign investors as they browse through the financial statement of the company. The audit and assurance services are a very important element that companies should follow if they desire to raise capital from foreign investors.