Introduction to IFRS

What are the objectives of IFRS?

The IFRSs are published by the International Accounting Standards Board (IASB) and bring transparency, accountability and efficiency to financial markets around the world. Since IFRS is a financial reporting language which is widely used globally, it is better understood by the different users of the financial statements.

The objectives of IFRS are:

• A single set of high-quality global accounting standards that bring consistency in preparation of the financial statements;
• Bring transparency, accountability and efficiency in financial reporting; and
• Help investors, analysts and other users of financial statements to make informed investment decisions.

How many countries have adopted IFRS?

IFRS is a global accounting and financial reporting language. It has been adopted in more than 140 countries, including the UK, European Union, Canada, Australia, Nigeria and Saudi Arabia. A major exception is the US which follows the US GAAP (Generally Accepted Accounting Principles).

Who are the users of the financial statements?

There are a variety of users of financial statements, each of whom may have different information needs. The internal users are the management and employees. There are a number of external users of the financial statements such as investors, analysts, rating agencies, lenders and regulators.