International Financial Reporting Standards (IFRS) are accounting rules for the preparation, presentation, and reporting of financial statements. The International Accounting Standards Board (IASB) issues and develops the IFRS. The purpose of IFRS is that entities have common accounting rules that allow financial statements to be consistent, reliable, and comparable between every business in any country. Although many countries allow the use of IFRS for the preparation of financial statements, United States’ companies apply Generally Accepted Accounting Principles (GAAP).
[Last updated in August of 2021 by the Wex Definitions Team]
