IFRS (International Financial Reporting Standards) are globally accepted accounting standards designed to ensure consistency, transparency, and comparability in financial reporting. Developed by the International Accounting Standards Board (IASB), they are widely used by companies in over 140 countries.
What is IFRS?
IFRS provides a framework for preparing and presenting financial statements. Key features include:
- Global Applicability: Used internationally, facilitating cross-border investments
- Principles-Based Approach: Focuses on substance over form
- Standardized Disclosures: Requires detailed reporting on financial position and performance
Key Principles of IFRS
- Going Concern: Assumes business will continue operating indefinitely
- Accrual Basis: Recognizes revenues and expenses when incurred, not when cash is exchanged
- Materiality: Requires disclosure of information that could influence decision-making
- Consistency: Applies the same accounting policies across periods
Why Learn IFRS?
- Career Advancement: Critical for professionals in global finance 🌍
- Cross-Border Compliance: Essential for multinational corporations 📜
- Investor Trust: Enhances transparency and credibility for stakeholders 📊
For deeper exploration, check our Learning Paths section to discover related courses on financial regulations.