International Financial Reporting Standards (ifrs)

International Financial Reporting Standards (IFRS)

• Enhance comparability within country and across countries over time
• Important for investors or relevant parties such as regulators to evaluate and assess performance and compliance
• Consistent definition and application across time and countries

Comparability

• Entities with similar economic activities report similar economic amounts
• Application of IFRS affected by:
• Clear understanding of the standards, including words
• Differences in individuals (background and experience) and country specific criteria (enforcement and regulation)
• Options allowed by the Standard (policy choice) and areas of judgement (highly conservative stance)