IFRS (International Financial Reporting Standards)

Welcome to this session on International Financial Reporting Standards or IFRS. IFRS is a global language for business, aiming to provide transparency, accountability, and efficiency in financial markets worldwide. Developed by the International Accounting Standards Board, these standards are now required or permitted in over 130 countries for financial statements of publicly listed companies and are being adopted by others. IFRS provides useful and reliable financial information for users making economic decisions. IFRS prescribes financial statements to present a comprehensive view of an entity's position and performance. The main statements are the statement of financial position or balance sheet in the United Kingdom, and the statement of profit or loss and other comprehensive income or income statement. The statement of changes in equity and the statement of cash flows. While terminology may vary between regions, the underlying structure and purpose are similar. IFRS emphasizes fair presentation of assets, liabilities, equity, income and expenses. A key aspect of IFRS is the conceptual framework, which guides both standard setting and the preparation of financial reports. The framework identifies two fundamental qualitative characteristics, relevance, meaning information must be capable of influencing decisions and faithful representation, requiring that information accurately reflects the transactions and events it purports to represent.