International Accounting Standards and its renaming to IFRS

International Accounting Standards and its renaming to IFRS

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Created By Admin Last Updated Tue, 08-Dec-2020

International Accounting Standards (IAS) is the oldest accounting standards that are issued by the International Accounting Standards The board which is an independent body based on standard setting in London. In 2001, International Financial Reporting Standards (IFRS) replaced the IAS. The IAS was the first accounting standards that were issued by IASC. The goal was to make it easier to compare the businesses running around the world. It also aims to increasing the transparency and trust related to finance and increase the rate of global trade and investment going in the countries.

As promoting the transparency of finance it helps the investors and other market participants to make better economic decisions related to the investment and helps in reducing the risk related to the businesses going around the world. The listed and sometimes unlisted companies have to use the standards in their financial statements in those countries which have adopted them.

Renaming the International Accounting Standards-

IASB is the major entity which proposes the International Standards of Accounting originally formed in 1973 as International Accounting Standards Committee and publishes the new standards as IFRS (International Financial Reporting Standards) in 2001.

IFRS is basically a development in the accounting standards talking of whichever standards. Further, any review or revision in IAS, made them as to come out as IFRS. In 2019, the International Accounting Standards Board issues 16 IFRS and 29 IAS. Hence now you will have clarity between the difference of IFRS and IAS.

CONCLUSION- The basic conclusion of renaming IAS is to upgrade and revise the old standards so that it would be great for other organizations to start with updating ones. IFRS helps in contributing to increasing economic efficiency around the world.