FAQ

International Financial Reporting Standards (IFRS) are a set of accounting standards developed by the International Accounting Standards Board (IASB) that is becoming the global standard for the preparation of public company financial statements

Approximately 117 nations permit or require IFRS for domestic listed companies, including listed companies in the European Union. Other countries, including Canada and India, are expected to transition to IFRS by 2011. Mexico plans to adopt IFRS for all listed companies starting in 2012. Some estimate that the number of countries requiring or accepting IFRS could grow to 150 in the next few years. Japan has introduced a roadmap for adoption that it will decide on in 2012 (with adoption planned for 2016). Still other countries have plans to converge (eliminate significant differences) their national standards with IFRS

By adopting IFRS, a business can present its financial statements on the same basis as its foreign competitors, making comparisons easier. Furthermore, companies with subsidiaries in countries that require or permit IFRS may be able to use one accounting language company-wide. Companies also may need to convert to IFRS if they are a subsidiary of a foreign company that must use IFRS, or if they have a foreign investor that must use IFRS
Companies may also benefit by using IFRS if they wish to raise capital abroad

Yes, companies that have no public accountability can and are encouraged to adopt full IFRS

The boards propose that the objective of general purpose financial reporting is to provide financial information about the reporting entity that is useful to be presented to potential equity investors, lenders, and other creditors in making decisions in their capacity as capital providers
The objective of financial reporting is the foundation of the conceptual framework. Other aspects of the framework – qualitative characteristics, elements of financial statements, recognition and measurement – will build on that foundation with the aim of ensuring that financial reporting achieves its objective