The International Financial Reporting Standards

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The International Financial Reporting Standards, or IFRS, are a major set of standards for accounting used outside of the United States. Multiple bodies, made up of accountants from multiple major economic markets, are involved in developing and publishing IFRS standards. Since the initial release of IFRSs every major continent has at least one jurisdiction using IFRS. In order to have one global and competitive market a unified set of financial reporting standards needs to be used. The International Financial Reporting Standards, influenced and accepted by accountants from around the world, are a promising start to a global set of accounting standards and the growth of a global market. The IFRS is affected by multiple authoritative bodies,…show more content…
The same level of authority is given to IFRS, IAS, IFRIC, and SIC, although the latter three are additions and modifiers to the IFRS currently in place. The first IFRS was issued in June 2003, and was restructured into its current format in November 2008. IFRS 1 created regulations and guidance for first-time adopters of IFRS (“International Financial Reporting Standard 1”). Another important aspect is the Conceptual Framework, although it is not considered a standard itself. The Framework was created to help future and existing IFRS unite differing regulations and standards for financial reporting across the multiple countries that use IFRS. The Framework also exists to help financial statement preparers and auditors comply with IFRS on both a principle and technical standpoint, and to help users of financial statements understand information presented under IFRS (“The Conceptual Framework for Financial…show more content…
In the summer of 2014 Mr. Takatsugu Ochi wrote an article directed towards his fellow countrymen of Japan stressing the importance of IFRS adoption. Mr. Ochi was a member of the IASB at the time this article was written, and continues to sit on the Board today. Mr. Ochi focused on the broader implications of IFRS adoption, such as the enhanced comparability of information and the benefits this would provide to investors in a competitive global market. IFRS also grants companies new options “such as cross-border fund procurement, capital tie-ups and business collaborations.” (Ochi, Takatsugu) The article is concluded by reminding Japanese citizens that the adoption of IFRS does not require a country to fully adopt practices of another country that may be in contradiction to local beliefs. The opinions of each country are discussed and granted equal respect under IFRS. (Ochi,
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