IFRS (International Financial Reporting Standards)
Globally applied accounting norms used by many UAE institutions.
Detailed Description
IFRS (International Financial Reporting Standards)
What is the main purpose of IFRS?
The main purpose of IFRS is to ensure that financial statements are consistent, comparable, and reliable, enabling informed economic decisions.
When was IFRS first established?
IFRS was first established in 2001 when the International Accounting Standards Board (IASB) replaced the International Accounting Standards Committee (IASC).
Who benefits from adopting IFRS?
Companies, investors, and stakeholders benefit from adopting IFRS as it enhances credibility, facilitates cross-border investments, and improves access to global markets.
What are some challenges of implementing IFRS?
Challenges include transitioning from local standards, complexity of certain IFRS standards, and the need for continuous updates and compliance.
How does IFRS differ from GAAP?
IFRS is more principles-based, allowing flexibility, while GAAP is more rules-based with specific guidelines, leading to differences in financial reporting.