International Financial Reporting Standards (IFRS) and International Accounting Standards (IAS) are universally accepted accounting principles and regulations that aim to standardize and streamline the process of preparing financial statements by companies worldwide. IFRS were created by the International Accounting Standards Board (IASB) and are recognized as global standards in accounting.
IFRS defines the principles for recognizing, measuring, presenting, and disclosing financial information in financial statements. These standards cover different categories of assets, liabilities, income, expenses, and other financial items, and also specify detailed requirements for preparing Financial Reports or different types of organizations.
Many of the standards that are part of IFRS Accounting Standards are known by the older name International Accounting Standards (IAS).
IFRS offer a standardized framework for financial reporting, simplifying the process for investors and stakeholders to compare the financial performance of various organizations. These standards enhance transparency and consistency in reporting, helping to mitigate the risks of financial fraud and mismanagement. They are periodically revised to align with shifts in the global economy and global financial markets ensuring that financial statements stay current and relevant.
In some countries, the use of IFRS is mandatory for listed companies, while in others it is voluntary. The purpose of these standards is to ensure uniformity in the preparation of annual reports and to facilitate the comparison of financial results of different organizations operating globally. How many countries is IFRS used in? IFRS Standards are required or permitted in over 140 jurisdictions across the world, including the European Union, Australia, and many countries in Asia and Africa.
The Accounting Act specifies only two types of entities that are required to apply IAS instead of the national accounting standards. These are entities specified in Article 55, paragraph 5 of this Act. In light of this provision, the regulations contained in IAS are mandatory when preparing consolidated financial statements issuers of securities referred to in Article 4 of Regulation (EC) No. 1606/2002 of the European Parliament and of the Council of 19 July 2002 on the application of international accounting standards and banks.
For business enterprises planning International Financial Reporting Standards (IFRS) adoption, GLC provides comprehensive accounting services that ensure compliance with international standards.
She started her career at GLC five years ago as an intern in the legal department. Currently, as a legal advisor, she mainly deals with corporate topics. On a daily basis, she supports entrepreneurs in their day-to-day operations.
