IFRS (International Financial Reporting Standards)

IFRS provides general guidance for the preparation of financial statements rather than setting rules for industry-specific reporting. Currently, over 100 countries permit or require IFRS for public companies, with more countries expected to transition to IFRS by 2015. Having an international standard is especially important for large companies that have subsidiaries in different countries. Adopting a single set of world-wide standards will simplify accounting procedures by allowing a company to use one reporting language throughout. A single standard will also provide investors and auditors with a cohesive view of finances.

Proponents of IFRS as an international standard maintain that the cost of implementing IFRS could be offset by the potential for compliance to improve credit ratings.

IFRS is sometimes confused with IAS (International Accounting Standards), which are older standards that IFRS has replaced.

Learn more about Compliance Regulation and Standard Requirements

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More resources from around the web: - The IASB is the standard setting body responsible for the development of International Financial Reporting Standards. - Ernst & Young has issued a financial reporting booklet for first-time adoption of International Financial Reporting Standards. - IBM has posted information about their ability to provide support for converting to IFRS.

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