International Financial Reporting Standards, commonly called IFRS, are accounting standards issued by the IFRS Foundation and the International Accounting Standards Board (IASB). They constitute a standardized way of describing the company’s financial performance and position so that company financial statements are understandable and comparable across international boundaries. They are particularly relevant for companies with shares or securities listed on a public stock exchange.
IFRS has replaced many different national accounting standards around the world but has not replaced the separate accounting standards in the United States where US GAAP is applied.
History
The International Accounting Standards Committee (IASC) was established in June 1973 by accountancy bodies representing ten countries. It devised and published International Accounting Standards (IAS), interpretations, and a conceptual framework. These were looked to by many national accounting standard-setters in developing national standards.
In 2001 the International Accounting Standards Board (IASB) replaced the IASC with a remit to bring about convergence between national accounting standards through the development of global accounting standards. During its first meeting, the new Board adopted existing IAS and Standing Interpretations Committee standards (SICs). The IASB has continued to develop standards calling the new standards “International Financial Reporting Standards” (IFRS).
In 2002 the European Union (EU) agreed that from 1 January 2005, International Financial Reporting Standards would apply for the consolidated accounts of the EU listed companies, bringing about the introduction of IFRS to many large entities. Other countries have since followed the lead of the EU.
IFRS 1 – First-time Adoption of International Financial Reporting Standards
IFRS 2 – Share-Based Payments
IFRS 3 – Business Combinations
IFRS 4 – Insurance Contracts
IFRS 5 – Non-current Assets Held for Sale and Discontinued Operations
IFRS 6 – Exploration for and Evaluation of Mineral Resources
IFRS 7 – Financial Instruments: Disclosures
IFRS 8 – Operating Segments
IFRS 9 – Financial Instruments
IFRS 10 – Consolidated Financial Statements
IFRS 11 – Joint Arrangements
IFRS 12 – Disclosure of Interests in Other Entities
IFRS 13 – Fair Value Measurement
IFRS 14 –