What are the main objectives of IFRS?
The main objectives of International Financial Reporting Standards (IFRS) are as follows:
- Provide a globally recognized set of accounting standards: The primary objective of IFRS is to provide a globally recognized set of accounting standards that companies can use to prepare their financial statements, promoting consistency and comparability in financial reporting across different countries and regions.
- Enhance transparency and comparability: IFRS requires companies to provide relevant and meaningful disclosures in their financial statements, promoting transparency and helping stakeholders make informed decisions.
- Promote accuracy and reliability: IFRS provides guidance on how to measure and report financial transactions and events, helping ensure the accuracy and reliability of financial statements.
- Facilitate regulation: IFRS provides a basis for regulatory bodies to enforce compliance and ensure that companies are following the rules and guidelines for financial reporting.
- Support sustainable development: IFRS promotes sustainability reporting, which can help companies identify and manage risks and opportunities related to environmental, social, and governance (ESG) issues.
Overall, the main objectives of IFRS are to provide a globally recognized set of accounting standards that promote transparency, accuracy, comparability, and consistency in financial reporting, while also supporting sustainable development and facilitating regulatory compliance.