See Also:
Generally Accepted Accounting Principles (GAAP)
Financial Accounting Standards Board (FASB)
Financial Ratios
Financial Instruments
Finance Beta DefinitionInternational Financial Reporting Standards (IFRS)¶
The International Financial Reporting Standards (IFRS) are a set of rules and standards for preparing financial statements. The IFRS are issued by an organization called the International Accounting Standards Board (IASB).
The goal of the IFRS is to standardize the regulations and procedures for financial statement preparation around the world. Currently, many countries have their own sets of standards for accounting rules and regulations for financial statement preparation. Across the globe, many countries are beginning to conform to the IFRS.
IFRS standards apply to financial statements such as the
balance sheet, the
income statement, the
statement of cash flows, a statement of
owner’s equity, and accompanying notes to financial statements. The IFRS cover such things as underlying assumptions and qualitative characteristics of financial statement preparation. The IFRS also cover the basic elements of financial statements –
assets, liabilities, equity, income, expenses – and the proper way to recognize these elements.
IAS – IFRSThe IFRS were established in 2001. Prior to that date (from 1973 to 2001), the International Accounting Standards (IAS) were the set of rules and regulations recognized worldwide. The IAS was incorporated into the IFRS.
International Accounting Standards Board (IASB)For more information regarding IASB and IFRS go to:
iasb.org