International Financing Reporting Standards (IFRS) are the rules and regulations of accounting set by the International Accounting Standards Board and International Financing Reporting Standards Foundation. These rules are to be followed while preparing comprehensive financial transaction reports of an organization. IFRS regulations are acknowledged internationally, that makes the financial statements globally understandable. While IFRS has been adopted by almost 140 nations to maintain their accounting standards, for example United States follows their own Generally Applied Accounting Principles (GAAP).
The main purpose of IFRS rules is to ensure transparency, high standard, and comprehensive, internationally accepted financial reporting. When countries are following the IFRS rules, it is obligatory for them to meet the specified standards in their accounting and financial reports publishing. Analyzing your company’s financial performance will give you a better insight of your business operations, following with your competitors and possibility to make changes accordingly.