International accounting standards are a set of rules and guidelines that aim to standardize the way companies must record and present their financial information. These standards were created with the objective of facilitating the comparison between the financial statements of different companies, making it easier for investors and financial analysts to evaluate the financial performance of a company.
International accounting standards are developed by the International Accounting Standards Board (IASB), an independent organization based in London, UK. The IASB is responsible for developing and publishing international accounting standards, which are known as International Financial Reporting Standards (IFRS).
IFRS is adopted by more than 120 countries around the world, including the European Union, Australia, Canada and Japan. In Brazil, IFRS has been adopted since 2010 for publicly traded companies and other companies that have chosen to follow international standards.
IFRS comprises a set of standards and interpretations that cover various accounting topics, such as revenue recognition, measurement of assets and liabilities, accounting for leases, among others. These standards are regularly reviewed and updated by the IASB to ensure they are in line with the latest accounting practices and the needs of users of financial statements.
IFRS have a significant impact on companies that adopt them, as they require changes in accounting processes and in the way financial information is presented. However, the adoption of IFRS also brings benefits, such as improving the quality of financial information, reducing compliance costs and greater transparency in financial statements.
In summary, international accounting standards are an important tool for standardizing the way companies record and present their financial information. The adoption of IFRS brings significant benefits to companies and their users, and is a global trend that is expected to continue to expand in the coming years.
