The International Financial Reporting Standards (IFRS) is a set of accounting guidelines that ensure accuracy and consistency in corporate finances across industries and national boundaries. More than 100 countries force public companies to observe IFRS guidelines. The U.S. has its own accounting standards known as Generally Accepted Accounting Principles (GAAP).
Accurate reporting of finances is an important condition for a fair and competitive marketplace. Inaccurate or falsified reports can have detrimental effects on businesses and consumers alike. Thus, IFRS and GAAP were created to standardize the way these reports are created and distributed.
Read more on IFRS.