IFRS: International Financial Reporting Standards
International Financial Reporting Standards (IFRS) are a set of accounting rules for the
financial statements of public companies that are intended to make them consistent,
transparent, and easily comparable around the world.
IFRS currently has complete profiles for 166 jurisdictions. including those in the
European Union.
The United States uses a different system, the Generally Accepted Accounting
Principles (GAAP).
The IFRS are issued by the International Accounting Standards Board (IASB).
The IFRS system is sometimes confused with International Accounting Standards (IAS),
which are the older standards that IFRS replaced in 2001.
History of IFRS:
IFRS originated in the European Union with the intention of making business affairs and
accounts accessible across the continent. It was quickly adopted as a common
accounting language.
Although the U.S. and some other countries don't use IFRS, currently 166 jurisdictions do,
making IFRS the most-used set of standards globally.
Who Uses IFRS?
IFRS are required to be used by public companies based in more than 160 countries,
including all of the nations in the European Union as well as Canada, India, Russia, South
Korea, South Africa, and Chile.8
The U.S. and China each have their own systems.
IASB: The International Accounting Standards Board (IASB).