IFRS- International Financial Reporting Standards

IFRS The Golden Rules

IFRS is an acronym that stands for international financial reporting standards. It is a set of accounting rules and standards that govern how accounting events should be reported in the financial statements of your company. The International Accounting Standards Board (IASB) issued IFRS to ensure that financial statements are consistent, comparable, and transparent around the world.

International Transactions are Not a Problem Anymore

Cross-border transactions are now commonplace, with a large number of businesses looking for investment opportunities all over the world. Previously, this type of internationalism was hampered by different countries' accounting standards, which added cost, complexity, and risk to business transactions. IFRS solves this problem by requiring all countries to use the same, globally applicable set of accounting standards.

The need for IFRS 

The International Financial Reporting Standards (IFRS) cover a wide range of accounting activities. Certain aspects of business practice are governed by mandatory rules established by IFRS.

• The Statement of Financial Position. IFRS has an impact on how the components of a balance sheet are reported.
• Statement of Comprehensive Income: This can be one statement or two: a profit and loss statement and a statement of other income, which includes property and equipment.
• Statement of Equity Changes:, also known as a statement of retained earnings, it documents the company's change in earnings or profit for the specified fiscal period.
• Statement of Cash Flows: This report summarizes the company's financial transactions over the specified time period, categorizing cash flow as operations, investing, or financing.

Get to know More 

The ultimate goal is for the standards to be applied consistently around the world, allowing investors and other users of financial statements to compare the financial performance of publicly traded companies on a like-for-like basis with their international peers. More than 100 countries, including the European Union and more than two-thirds of the G20, now use IFRS. If you would like to develope your skills in IFRS you can check our IFRS training progrmas