INTERNATIONAL FINANCIAL REPORTING STANDARD (IFRS)

International financial reporting standard is a set of international accounting standards stating how particular types of transactions and other events should be reported in financial statements. International Accounting Standard Board (IASB), which operates under the oversight of the International Accounting Standard Committee Foundation (IASCF), is an independent, private sector body that develops and approves International Financial Reporting Standards. International Financial Reporting Interpretation Committee (IFRIC) is the functionary body for the interpretation of IFRSs and IASs. IFRIC replaces the standing interpretation committee (SIC) in March 2002. Meanwhile, IASB has issued 37 international accounting standards (named as 29 IASs and 8 IFRSs).
IFRS is becoming the global standard for preparation of financial statements by business enterprises. The need of international harmonization of financial reporting standards have largely paved due to the development of international capital markets. More than 100 member countries have adopted and/or permitted use of IFRS. Mandatory use of IFRSs is likely to begin in 2014 to all member countries. The expected number of countries requiring or accepting IFRSs could grow to 150 in the next few years.