Different countries employ different Accounting standards while computing the Profits or a company. Hence the Accounting results for the different countries will always gives different results.

Accounting Across the Globe

Accounting Across the GlobeProfits computed as per different accounting laws of different countries always yield different figures. So as to remove this discrepancy in Accounting across the Globe, Countries over the world world decided to apply uniform standards of accounting so as to arrive at uniform profits across the Globe.

There arises the importance of International Financial Reporting Standards (IFRS), which removes the gap between the GAAP ( Generally Accepted Accounting Principles) of different countries of the world.

Accounting Across the Globe

International Financial Reporting Standards (IFRS) is a set of accounting standards developed by an independent, not-for-profit organization called the International Accounting Standards Board (IASB).

What is IFRS

In other words, the International Financial Reporting Standards are designed to make it easy for people to see and interpret the financial records of organizations that follow it.

What is IFRS

While many with small to medium sized businesses may not truly understand the value of adopting the IFRS, large companies and organizations with international subsidiaries and affiliates see great benefit from adopting the IFRS framework.

The Goal???With the ultimate objective being a consolidation of global accounting practices, the IFRS is really designed to offer a single “language” that is widely used and adopted, much in the same way that common mathematical conventions are universally written and understood.

IFRS aims to provide a global framework for how public companies prepare and disclose their financial statements. IFRS provides general guidance for the preparation of financial statements, rather than setting rules for industry-specific reporting.

The Goal???

Guidance on the preparation of Financial Statements

Currently, over 100 countries permit or require IFRS for public companies, with more countries expected to transition to IFRS by 2015. It is expected that the adoption of IFRS will be benefited to the investors and the companies as well.

Scope

BenefitsSimplification of Accounting Procedures

Standardized View of Accounting

Global Acceptance

Easy Global Credit