Objectives Of International Financial Reporting Standards

The international financial reporting standards foundation is a not for profit corporation incorporated in the state of delaware united states of america with the delaware division of companies file no.

Objectives of international financial reporting standards. Objectives of international financial reporting standards ifrs to develop in the public interest a single set of high quality understandable and enforceable global accounting standards that require high quality transparent and comparable information in financial statements and other financial reporting to help participants in the world s capital markets and other users make economic. International financial reporting standards commonly called ifrs are accounting standards issued by the ifrs foundation and the international accounting standards board iasb. The institute of chartered accountants from 9 nations i e u s a canada u k. Ifrs 1 first time adoption of international financial reporting standards sets out the procedures that an entity must follow when it adopts ifrss for the first time as the basis for preparing its general purpose financial statements.

The goal of ifrs is to provide a global framework for how public companies prepare and disclose their financial statements. Difficulties in enforcement of standards. They constitute a standardised way of describing the company s financial performance and position so that company financial statements are understandable and comparable across international boundaries. After establishment of international standards difficulties may emerge at enforcement level.

The ifrs grants limited exemptions from the general requirement to comply with each ifrs effective at the end of its first ifrs reporting period. International accounting standards committee iasc came into being on 29th june 1973 when 16 accounting bodies viz. International financial reporting standards ifrs are a set of international accounting standards stating how particular types of transactions. Objectives of financial reporting.

Let us make an in depth study of the history and objectives of international accounting standards iasc. Its principal objectives are. International financial reporting standards ifrs. To develop in the public interest a single set of high quality understandable enforceable and globally accepted international financial reporting standards ifrs standards based upon clearly articulated principles.

3353113 and is registered as an overseas company in england and wales reg no. When it is said that financial reporting should be useful to investors this goal is primarily oriented towards indigenous investors. According to international accounting standard board iasb the objective of financial reporting is to provide information about the financial position performance and changes in financial position of an enterprise that is useful to a wide range of users in making economic decisions the following.