IFRS Meaning

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.

0 comments… add one

Leave a Comment

Related pages

cross currency calculationslr fullformexamples of scarcity in economicsdemat vs trading accountdisadvantages of mixed economy systemdistinguish between management accounting and cost accountingffe reservefdi long formlimitations of capital budgetingbenefits of payback perioddisadvantages of low cost strategybackward integration examplescharacteristics monopolistic competitionhow to fill out a withdrawal slip at a bankfull form of cpijournal entry for bills receivablewhat is current assets and current liabilities with examplebundling pricing strategyforex reserve meaningwhat is oligopoly marketadvantages of b2b marketingprivatization disadvantageswhat are the disadvantages of market economyrapid skimming strategy examplesfree market economy advantages and disadvantages pdfdefinition centrally planned economydebentures as a source of financeadvantages mixed economydisadvantages of comparative advantage theoryadvantages and disadvantages of venture capitalhypotheticationcapitalist economy advantages and disadvantagesdifference between trading account and demat accountskimming pricing examplelimitation of barter systemdefine materiality concepthorizontal & vertical analysislaw of diminishing returns economics examplejournal entry for prepaymentmarket skimming definitionwhy trial balance is preparedmarketing penetration strategy exampleautocratic decision makingwhat is a profitability ratiodisadvantage of sales promotioncreditors turnover ratiodisadvantages of the gold standardmeaning of unsystematic riskmeaning of floating exchange ratedrawee drawerbhel company in indiaadvantages and disadvantages of a loanadvantages of denormalizationhorizontal analysis balance sheetfloating currencyglobalisation disadvantagesissued vs outstanding sharesadvantages of a takeoverdefinition of drawer and draweeadvantages of loan syndicationurbanization advantagesadvantages and disadvantages of accounting ratiosunitary elasticity exampleexample of elastic goodsadvantages of socialismprofitability ratio formulasdifference between price discrimination and price differentiationoutstanding rent journal entryproblems with the barter systemoutstanding salary journal entryrental income journal entrymerger horizontaldisadvantages democracyprofit push inflation definitioncrossing of a chequeentry for salary payableadvantages of a dictatorshipmateriality concept in accountingplr of sbiadvantages of promotional pricingwhat is rate sensitive assetsconglomerate merger examples