IFRS – International Financial Reporting Standards are designed as a common global language for business affairs so that company accounts are understandable and comparable across international boundaries. They are a consequence of growing international shareholding and trade and are particularly important for companies that have dealings in several countries. They are progressively replacing the many different national accounting standards. They are the rules to be followed by accountants to maintain books of accounts which are comparable, understandable, reliable and relevant as per the users, internal or external.
Orange Accounting Consultancy will implement and provide a standardized way to describe the financial performance of an entity.
“The point of it is to maintain stability and transparency throughout the financial world. This allows businesses and individual investors to make educated financial decisions, as they are able to see exactly what has been happening with a company in which they wish to invest.”
IFRS are maintained by the IFRS Foundation. The mission of the Foundation is to “bring transparency, accountability and efficiency to financial markets around the world.” Not only does the IFRS Foundation supply and monitor these standards, but it also provides suggestions and advice to those who deviate from the practice guidelines.