IFRS Accounting

 

IFRS Accounting

 

International Financial Reporting Standards (IFRS) accounting refers to a globally recognized framework of accounting rules and guidelines issued by the

InternationalAccounting Standards Board (IASB). IFRS is designed to bring transparency, consistency, and comparability to financial statements across international boundaries.

Under IFRS, companies follow standardized methods to report financial performance, position, and cash flows. This ensures that investors, regulators, and other stakeholders can reliably assess a company's financial health regardless of its geographic location.

Key features of IFRS accounting include:

·         Principle-based approach: Focus on broad principles rather than rigid rules, allowing flexibility in application.

·         Fair value measurement: Emphasizes reporting assets and liabilities at their current market value.

·         Revenue recognition: Standardized methods for when and how revenue is recognized across industries.

·         Consistency and comparability: Facilitates comparison between companies globally.

IFRS is widely adopted in over 140 countries, including those in the European Union, parts of Asia, and Africa. While not mandatory in the United States (which uses US GAAP), many multinational companies prepare IFRS-compliant reports for global stakeholders.