What does IFRS stand for?

What does IFRS stand for?

• A. A framework for auditing government accounts.
• B. A local accounting standard used in a single country.
• C. International Financial Reporting Standards, the global standard for financial reporting established by the IASB.
• D. A set of guidelines for corporate governance.

Answer: (C)

IFRS stands for International Financial Reporting Standards, the global standard for financial reporting established by the International Accounting Standards Board. These standards provide a common, principle-based framework for preparing and presenting financial statements so users can compare information across companies and borders. They cover how assets, liabilities, income, and expenses are recognized and measured, how the financial statements are structured, and what disclosures are required. Many countries have adopted IFRS as their required framework, making it the common language of international finance; it’s distinct from auditing standards, which govern the audit process, and from corporate governance guidelines, which relate to governance practices rather than how financial statements are prepared. The IASB continuously issues and updates IFRS through individual standards and interpretations.

IFRS stands for International Financial Reporting Standards, the global standard for financial reporting established by the International Accounting Standards Board. These standards provide a common, principle-based framework for preparing and presenting financial statements so users can compare information across companies and borders. They cover how assets, liabilities, income, and expenses are recognized and measured, how the financial statements are structured, and what disclosures are required. Many countries have adopted IFRS as their required framework, making it the common language of international finance; it’s distinct from auditing standards, which govern the audit process, and from corporate governance guidelines, which relate to governance practices rather than how financial statements are prepared. The IASB continuously issues and updates IFRS through individual standards and interpretations.