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What does IFRS stand for?

IFRS standards are International Financial Reporting Standards (IFRS) that consist of a set of accounting rules that determine how transactions and other accounting events are required to be reported in financial statements.

What countries require businesses to use IFRS?

IFRS is required to be used by public companies based in 167 jurisdictions, including all of the nations in the European Union as well as Canada, India, Russia, South Korea, South Africa, and Chile. The U.S. and China each have their own systems. 1

What are the objectives of IFRS?

The primary objective of the IFRS is to make financial statements comparable across the globe. Even though it is the most popular accounting standard across the world, it is yet to achieve its objective fully. It is because of the presence of US GAAP and other accounting standards.

How do IFRS affect accounting standards?

The use of IFRS helps to ensure the transparency and credibility of the accounting statements. And this, in turn, allows third parties to make decisions by going through these financial records. IFRS mandates that all companies follow it uses the same rules and standards to prepare their financial statements.