International Financial Reporting Standards (IFRS)

Global accounting standards used in over 140 countries, providing a common framework for financial reporting to enhance transparency and comparability worldwide.

#Accounting Principles and Standards#Regulatory Framework#International Finance

International Financial Reporting Standards (IFRS)

A set of accounting standards developed by the International Accounting Standards Board (IASB) that provides a global framework for how public companies prepare and disclose their financial statements.

For example, a multinational corporation with subsidiaries in Europe, Asia, and South America might adopt IFRS to standardize financial reporting across all its operations, facilitating cross-border comparisons and global investment analysis.

IFRS emphasizes principles over rules and aims to increase international comparability of financial information. While similar to U.S. GAAP in many respects, IFRS allows more judgment in certain areas and may produce different results for complex transactions, creating challenges for companies operating in multiple jurisdictions.