The International Financial Reporting Standards
The International Financial Reporting Standards (IFRS) are a set of guidelines and rules that guide accounting and financial professionals all over the world in preparing and reporting the financial information of business entities (AICPA, 2008). The IFRS set of guidelines were adopted by the International Accounting Standards Board (IASB) to guide the board in the regulation of the accounting professional industry. The IASB continually seeks to provide better quality accounting information for all its users; therefore, the IFRS were developed to address the growing demand for this quality information. The development and acceptance of the IFRS as internationally accepted guidelines is a process that started more than a decade ago, with the first introduction of the Financial Accounting Standards Board (FASB) to produce the Generally Accepted Accounting Principles (GAAP).
The setting of US accounting standards by the FASB needed to be universalized; therefore, the IASB was formed in 2001 to set internationally accepted accounting standards. This led to the development of the IFRS, which are standards that tend to converge on a solution for the international body of accounting. The formation of the IFRS included an adoption of the International Accounting Standards (IAS) that was being used by the IASC before the introduction of the IASB. The current composition of the IASB is still overseen by the IFRS foundation and a number of members drawn from the international body of accountants. ...Show more