IFRS is an abbreviation of “International Financial Reporting Standards,” which describes the affairs of business in accordance to make them understandable and able to meet the international standards of accounting & financial reporting systems. It is important for those companies to equalize their reporting standards with IFRS, whose dealing in different countries throughout the nation. In simple words, it is an accounting standard that are introduced by International Accounting Standard Board (IASB).
What does IFRS refer to?
According to the Business Professional in Financial and accounting tactics, IFRS describes the various guidelines and policies regarding preparation of accounting books and financial statements according to the generally accepted rules, for the international companies rather than local and national businesses. It is only important for those companies that have essential and having business in more than one country.
Don’t be confused with IFRS and IAS. These both are different from each other. IFRS is a new approach among the various accounting and financial schedules and issued in 2001 whereas, International Accounting Standards esteemed as an old standard of accounting which was introduced in between 1973 to 2000.
What does IFRS represent?
- Preparation of statements of Financial Position.
- A statement that provides inclusive income (P/L Account).
- A statement that recognizes overall changes among the Company’s Equity.
- Cash & Fund flow statement that suggest the sources for funds i.e. where from funds comes and applications for funds and to whom the payments to made.
Accordingly proceeding with such standards not easy and you need to be a partner with some especially skilled business personnel for best interaction with such financial standards. Evan Vitale has practical knowledge about such proceedings and provides timely reports regarding IFRS summarized reports, as wise.