International Financial Reporting Standards - IFRS

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DEFINITION of 'International Financial Reporting Standards - IFRS'

A set of international accounting standards stating how particular types of transactions and other events should be reported in financial statements. IFRS are issued by the International Accounting Standards Board.

IFRS are sometimes confused with International Accounting Standards (IAS), which are the older standards that IFRS replaced. (IAS were issued from 1973 to 2000.)

INVESTOPEDIA EXPLAINS 'International Financial Reporting Standards - IFRS'

The goal with IFRS is to make international comparisons as easy as possible. This is difficult because, to a large extent, each country has its own set of rules. For example, U.S. GAAP are different from Canadian GAAP. Synchronizing accounting standards across the globe is an ongoing process in the international accounting community.

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RELATED FAQS
  1. Do all countries follow the same GAAP?

    Generally accepted accounting principles, formally designated in the United States as GAAP, vary from country-to-country, ... Read Full Answer >>
  2. How should a change in accounting principle be recorded and reported?

    A change in accounting principle is the term used when a business selects between different generally accepted accounting ... Read Full Answer >>
  3. What is the accounting treatment for discontinued operations in IFRS and U.S. GAAP?

    Discontinued operations are company assets or components that have either been disposed of or are being held for sale. The ... Read Full Answer >>
  4. What are the differences for barter transactions recognition between IFRS and USGAAP?

    Barter exchange takes place when a person or business entity provides a good or service and receives a good or service in ... Read Full Answer >>
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