Quick Definition

International Financial Reporting Standards (IFRS) are a set of accounting standards developed by the International Accounting Standards Board (IASB) that guide the preparation and presentation of financial statements globally.

Examples

• 1A multinational corporation uses IFRS to consolidate its financial statements from operations in different countries, ensuring consistency and comparability.
• 2An investment analyst compares the financial performance of two companies from different countries, both of which report under IFRS.
• 3A company planning to list its shares on a foreign stock exchange adopts IFRS to meet the listing requirements and attract international investors.
• 4A financial auditor reviews a company's financial statements to ensure they comply with IFRS before issuing an audit opinion.

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