What does the acronym IFRS stand for?

The acronym IFRS stands for International Financial Reporting Standards. These standards are developed and issued by the International Accounting Standards Board (IASB) and provide a framework for preparing financial statements that enhance transparency, consistency, and comparability across international borders. By adopting IFRS, companies can provide financial information that is understood universally, which is especially crucial for investors, regulators, and other stakeholders who operate in different countries.

IFRS plays a vital role in the global marketplace, as it facilitates cross-border investment and provides investors with reliable financial information to make informed decisions. The common set of accounting standards helps to reduce the discrepancies that can arise from using different national accounting practices, thus fostering greater accountability and efficiency in financial reporting.