IFRS

IFRS

Transparency, in recent times, has become an issue, as a result of events such as the Enron accounting scandal—coinciding with the progressive adoption of the International Accounting Standards Board (IASB) issued International Financial Reporting Standards (IFRS) worldwide in replacement of the Generally Accepted Accounting Principles (GAAP), the implementation of the Sarbanes-Oxley (SOX) reporting requirements for corporate governance in the United States, and the credit crisis precipitated when transactions appear to have involved misunderstood, misused, and misrepresented financial products. (FASB, 2008)

The IASB is a group of 14 members from nine different countries that works to develop global accounting standards. The goal of this committee is to create global standards that are transparent, enforceable, understandable, and of high quality. The IFRS is a result of this effort, and is endorsed by some countries with notable exceptions. The exceptions include the U.S. Financial Accounting Standards Board, and the Accounting Standards Board (AcSB) of Canada, who do not adhere directly to IFRS but are still involved in discussions. The ongoing task for the IASB is to include these countries in subscribing to coordinated standards.

IFRS are developed by the International Accounting Standards Board (IASB), which is a nonprofit organization. The IASB's mission is to develop the public interest in the accounting standards of high quality which are understandable and can be applied worldwide. The IASB has the support of many countries, including Canada and the United States. Nearly a hundred countries currently require or permit the application of IFRS. Although the United States is still using American standards

Today, most countries around the world use international financial reporting standards (IFRS). Many American companies are already registered in accordance with IFRS. However, most companies are currently still trying to implement this task. To begin reporting under international standards, companies must carefully plan and define a strategy of transition to IFRS.

IFRSs are designed for financial reporting of any commercial, ...