— Kishore V, SME and ACW at Edumarz.
International Financial Reporting System (IFRS):
The International Accounting Standard Board (IASB) publishes International financial reporting standards.
IFRS are a collection of international accounting standards that specify how certain transactions and other events should be recorded in financial statements.
IFRS were created to set accounting standards that would be accepted globally and to validate financial reporting.
Need Of IFRS:
The financial statements are used to make key economic choices.
To eliminate financial accounting fraud, a consistent method of determining which aspects require recognition and measurement, as well as how information is presented in financial statements, is required.
As a result, IFRS aids in the prevention of material manipulation and financial statement inaccuracies.
The International Financial Reporting Standards (IFRS) contribute to worldwide harmonisation.
Unless accounting operations are controlled, each country will apply its own set of accounting norms and regulations.
The regularity and comparability of financial accounts will be hampered as a result.
As a result, the International Financial Reporting Norms (IFRS) encourages worldwide standards for each business’s growth.
It makes international investing easier.
The convergence of financial reporting and accounting standards is an important process that promotes the free flow of global investments while also providing significant benefits to all capital market participants.
Almost all nations have decided to use IFRS to provide standard accounting regulations and practices.
The name of this IFRS, however, has been shortened to Ind AS.
In terms of substance, Ind AS is identical to IFRS.
Ind AS is an accounting standard that was announced by the Ministry of Corporate Affairs and has a wide range of convergence when compared to other accounting standards.