IFRS is the term which is used in the context accounting standards which companies are expected to follow if they are operating in an international market. Full form of IFRS is International Financial Reporting Standards. Since every country has its own accounting standard for domestic companies but in today’s globalized world firms have to operate in more than one country which makes things complicated because for a organization which is operating in 2 nations, two accounting standards would be quite confusing to follow and in order to overcome that limitation IFRS is used so that firms operating in many countries can present their accounts in a proper and unbiased manner and there is no scope for any ambiguity and fraud. So for example if a US company is having its presence in UK, now UK and USA accounting standards are different from each other in some aspects, in this case IFRS comes in handy and company can follow IFRS thereby making it easier to interpret the financial statements for company as well as other parties like income tax authorities, government, shareholders and so on. The international financial reporting standards were previously known as international accounting standards.