Let's learn more about IFRS......
IFRS stands for International Financial Reporting Standards. IFRS are standards and interpretations adopted by the International Accounting Standards Board. We use U.S. GAAP (Generally Accepted Accounting Principle) for financial reporting purposes in U.S.
Q. What is IFRS?
A. IFRS is a set of accounting standards are becoming the global standards for the preparation of public company financial statements. IFRS is developed by the International Accounting Standards Board (IASB). The IASB is an independent accounting standards body, based in London.
Q. How well-known is the adoption of IFRS around the world?
A. It is being accepted by many countries.
- More than 12,000 companies in 100 nations
- Canada and India expected to adopt by 2011
Q. What are the advantages of converting to IFRS?
A. IFRS provides a platform for companies from different countries to get recognized in foreign markets
- Business can present its financial statements on the same basis as its foreign competitors, making comparisons easier
- Companies may benefit if they wish to raise capital abroad
Q. What is the difference between U.S. GAAP and IFRS?
A. There are significant differences between U.S. GAAP and IFRS.
- IFRS provides much less overall details
- IFRS fits into one book, about two inches thick and paperbacks of pronouncements, plus the paperback version of the FASB Emerging Issues Task Force consensuses, measure about nine inches thick, and that does’t include all the U.S. authoritative accounting literature.
