International Financial Reporting Norms: An Overview

Vincent Russell^*
*Correspondence: Vincent Russell, Department of Business Administration, Cankaya University, Turkey, Email:

Short Communication

International Financial Reporting Norms, generally called IFRS, are counting norms issued by the IFRS Foundation and the International Accounting Norms Board (IASB). They constitute a standardized way of describing the company's fiscal performance and position so that company fiscal statements are accessible and similar across transnational boundaries. They're particularly applicable for companies with shares or securities listed on a public stock exchange.

IFRS have replaced numerous different public account norms around the world but haven't replaced the separate account norms in the United States where US GAAP is applied. The International Accounting Norms Committee (IASC) was established in June 1973 by accountancy bodies representing ten countries. It cooked and published International Accounting Norms (IAS), interpretations and an abstract frame. These were looked to by numerous public account standard-setters in developing public norms.

In 2001 the International Accounting Norms Board (IASB) replaced the IASC with a remit to bring about confluence between public accounts norms through the development of global account norms. During its first meeting the new Board espoused being IAS and Standing Interpretations Committee norms (SICs). The IASB has continued to develop norms calling the new norms "International Financial Reporting Norms" (IFRS).

In 2002 the European Union (EU) agreed that, from 1 January 2005, International Financial Reporting Norms would apply for the consolidated accounts of the EU listed companies, bringing about the preface of IFRS to numerous large realities. Other countries have since followed the lead of the EU. In 2021 on the occasion of COP26 of the United Nations Framework Convention on Climate Change in Glasgow the IFRS Foundation blazoned the conformation of the new International Sustainability Standards Board ISSB.

Numerous experimenters have studied the goods of IFRS relinquishment but results are unclear. For illustration, one study uses data from 26 countries to study the profitable consequences of obligatory IFRS relinquishment. It shows that, on average, indeed though request liquidity increases around the time of the preface of IFRS, it's unclear whether IFRS accreditation relinquishment is the sole reason of observed request goods. Enterprises' reporting impulses, law enforcement, and increased community of fiscal reports can also explain the goods. The relinquishment of IFRS in the European Union is a special case because it's an element of wider reforms aiming to consolidate the husbandry of member countries. One study reports positive request goods for companies espousing IFRS but these positive goods passed indeed before the transition took place. Another study looked at the development of the stock request in Poland; it plant positive goods associated with Poland joining the EU but no specific effect attributable to the IFRS. Interestingly, member countries maintain a large degree of independence in setting public account norms for companies that prefer to stay original.

Nethermost line” is the net income that's calculated after abating the charges from profit. Since this forms the last line of the income statement, it's informally called “nethermost line. ”It's important to investors as it represents the profit for the time attributable to the shareholders. After modification to IAS 1 in 2003, the Standard is now using profit or loss for the time rather than net profit or loss or net income as the descriptive term for the nethermost line of the income statement.