IFRS - International Financial Reporting Standards
International Financial Reporting Standards is a set of financial standards that allow companies and organizations to develop financial reports that can be understood by people of different countries. These standards have been developed by the International Accounting Standards Board (IASB), a not-for-profit organization dedicated to accounting standards development.
Reports prepared with the IFRS standards are easier to read and compare by government organizations, companies and investors. It is such a necessity for companies who have their subsidiaries in multiple countries to have a common accounting language for compiling and displaying the financial reports.
Today, more than 100 countries have adopted these standards and require their companies to prepare the financial reports based on the IFRS standards. IFRS was previously known by the name International Accounting Standards (IAS).