What are IFRS? – Statements of International Accounting Standards issued by the Board of the International Accounting Standards Committee (IASC) (1973-2001) are designated as International Accounting Standards (IAS). However, the International Accounting Standards Board (IASB) announced in April 2001 that its Accounting Standards would be designated as ‘International Financial Reporting Standards’ (IFRS). IASB publishes its Standards in a series of pronouncements called International Financial Reporting Standards (IFRS). It also adopted the body of Standards issued by the Board of the IASC. Those pronouncements continue to be designated as IAS. Presently, there are 25 IAS and 16 IFRS, 13 IFRIC Interpretations and 5 SIC Interpretations (after considering IAS that have been withdrawn and replaced or superseded.)
In Simple Words – IFRS refers to International Financial Reporting Standards. These are the accounting standard that are developed by IASB. These are designed as a common global language for the affairs of the business such that they are understandable and comparable world-wide.
More about IFRS
As the economy develops, it is exposed to International environment and commercial transactions. There is a need to lay down standard principles of accounting for making the financial statements comparable and bring them closure to the substance of transaction.‘IFRS’ which stands for International Financial Reporting Standards, are these principle based standards that focus on substance over form.
International Financial Reporting Standards broadly includes Reporting Standards, Accounting Standards and Interpretations on Accounting and Reporting, apart from Conceptual framework and Preface to International Financial Reporting Standards.