What is IFRS?
IFRS stands for International Financial Reporting Standards. Historically, countries adopted their own set of accounting and reporting standards based upon many factors such as their legal system, political system, capital markets, etc. As one can imagine, this led to many differences in how transactions get reported from one country to the next.
As early as 1973, accountancy bodies in 10 countries joined together to form The International Accounting Standards Committee. The committee began looking at the idea of developing one set of international reporting standards. By 2000, over 100 countries were on board and 41 international accounting standards were in place. However, countries were still primarily using their own reporting standards. Since 2000, this is quickly changing. The International Accounting Standards Board replaced the IASC and continues issuing international accounting standards.
Today, over 100 countries have adopted the use of IFRS. Japan and the United States are the last two large countries to officially adopt these standards. More than likely both will adopt the use of IFRS in the next several years. The convergence to IFRS will likely have an impact beyond just the preparation of your financial statement. It can change the way you report taxes and may require new accounting software to be able to capture and report the necessary data. We are committed to helping our clients and peers get ready for this ultimate shift in financial reporting requirements, tax reporting and technology needs.
Contact us to get started or click on the links below for more specific information specific to your situation.You can always keep on top of the latest news on our "Going Global" blog or at the AICPA's www.ifrs.com.
IFRS for Small to Medium Sized Entities
IFRS for SMEs
IFRS for Banks and Financial Institutions
Local and Regional CPAs and Firms
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