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Sunday, 9 September 2018

IFRS

As we know that development of economies was not possible without globalisation. Globalisation made possible international trade. Companies are trading worldwide now. Every company needs to maintain accounting information in a language that would be understandable worldwide because in this era accounting information of a company is used in different corners of the world by investors, creditors etc. Accounting is a language of business so this language must be understandable for every person in the world. To make this possible , rules and standards to prepare accounting information i.e profit and loss account and Balance sheet were necessary so that accounting information of every company should be uniform and comparable. A set of high quality standards for preparing accounts was necessary for this purpose.
IFRS
IFRS


Therefore International Accounting Standards were developed. Later it was known as IFRS In 1973. International Accounting standard committee was established for this purpose. This committee was renamed later as International accounting standard board in the year 2001.

IASB issues International financial reporting standards. These standards would be acceptable worldwide to produce uniform accounting information.

Objectives of IASB

  1. To develop high quality. Understandable and global accounting standards.
  2. To promote the use of these standards worldwide.
  3. To take account of special needs of small and medium sized entities and emerging economies.


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