Write short notes of International Financial Reporting System. -MBA Notes

Answer:
IFRS stands for  International Financial Reporting System.

IFRS  was  framed  by  International Accounting Standards Board (IASB). IFRS are standards, interpretations and framework for the preparation and presentation  of  financial  statements.

The  objective  of  financial  statement  is  to  provide  information  about  the financial position, performance and changes in the financial position of an entity. 

It should also provide the current financial status of the entity to all the users of financial information. 

IFRS follows accrual basis of accounting and  the  financial  statements  are  prepared  on  the  basis  that  an  entity  will continue for the foreseeable future. IFRS helps entities access global capital market with ease.

Under IFRS, we need to submit a statement of financial position (Balance Sheet),  Comprehensive  income  statement  (Profit  &  Loss/  Income  and Expenditure account), either a statement of changes in equity or statement of recognized income or expenses, cash flow statement and notes including summary of significant accounting policies.

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