Answer to Question #238677 in Management for Gundo

Question

Explain the underlying prescriptions of IFRS

Answer 1

International Financial Reporting Standards (IFRS) are a set of accounting rules for the financial statements of public companies that are intended to make them consistent, transparent, and easily comparable around the world. IFRS originated in the European Union with the intention of making business affairs and accounts accessible across the continent. It was quickly adopted as a common accounting language.

 IFRS lay down in detail how companies must sustain their chronicles and report their expenditures and income. They were established to create a common accounting language that could be understood globally by investors, auditors, government regulators, and other interested parties.

The standards are planned to bring consistency to accounting language, practices, and statements and to help businesses and stockholders make educated financial investigates and conclusions. They were developed by the International Accounting Standards Board, which is part of the not-for-profit, London-based IFRS Foundation. The Foundation says it sets the standards to bring transparency, accountability, and efficiency to financial markets around the world.