IFRS are a global set of accounting standards used to maintain comparable and understandable financial reporting across international boundaries. They were established to increase the reliability of financial statements for cross-border transactions and improve the comparability of reporting globally. Some benefits of IFRS include increased credibility, easier access to technical support, and career mobility for accounting professionals. However, adopting IFRS also presents challenges such as differences from existing accounting standards, the need for training and education, legal considerations, and taxation effects.

2. WHAT IS IFRS?
 IFRS stands for International Financial Reporting
Standards.
 IFRS are designed as a common global language for
business affairs so that company accounts are
understandable and comparable across international
boundaries.
 The rules to be followed by accountants to maintain
books of accounts which is comparable,
understandable, reliable and relevant as per the users
internal or external.

3.  IAS were issued between 1973 and 2001 by the board of
the International Accounting Standards Committee
(IASC).
 On 1 April 2001, the new International Accounting
Standards Board took over from International
Accounting Standards.
 The IASB has continued to develop standards calling
the new standards “International Financial Reporting
Standards (IFRS).”

4.  Increase credibility and reliability of financial
statement especially in cross-border transactions.
 Comparability of financial statement at both national
and international levels.
 Easy access to technical support given the widespread
adoption around the world.
 Career mobility of accounting professionals.
 Improves quality of information necessary for
management decisions.

5. IFRS 1 – First Time
Adoption of IFRS
IFRS 2 – Share-Based
Payments
IFRS 3 –Business
Combination
IFRS 4 – Insurance
Contracts
IFRS 5 – Non-Current
Assets Held For Sale
And Discontinued
Operation
IFRS 6 – Exploration
For And Evaluation
Of Minerals
IFRS 7 – Financial
Instruments:
Disclosure

6. Problems
and
Challenges
Difference in
GAAP and
IFRS
Training and
education
Legal
Consideration
Taxation
effects
Fair value
measurement
Problems and Challenges

7.  IFRS are used in many parts of the world, including
the European Union, India, Hong Kong, Australia,
Malaysia, Pakistan, GCC countries, Russia, South
Africa, Singapore and Turkey.
 As more than 113 countries around the world,
including all Europe, currently require or permit IFRS
reporting and 85 require IFRS reporting for all
domestic, listed companies, according to the U.S.
Securities and Exchange Commission.

8.  IFRS helps to maintain stability and transparency
throughout the financial world.
 This allows business and individual to make educated
financial decisions.
 Companies that do a lot of international business
benefit the most from IFRS.
 Companies that have high levels of international
activities are among the group that would benefit from
switch to IFRS.