international accounting standards

International Financial Reporting Standards (IFRS) are a set of rules and accounting principles that aim to standardize and harmonize the preparation and presentation of financial statements by companies around the world. They were developed by the International Accounting Standards Board (IASB) and are adopted by over 140 countries. IFRS arose from the need to create a set of accounting standards that was globally accepted and understood. Before its creation, each country had its own accounting rules, which made it difficult to compare the financial statements of companies operating in different countries. This generated a lack of transparency and confidence on the part of investors and made it difficult to make business decisions. With the adoption of IFRS, companies began to follow a single set of accounting standards, which facilitated the comparability of financial information and increased the transparency of statements. In addition, IFRS are intended to provide relevant and reliable information to investors and other users of financial statements. IFRS cover several aspects of accounting, such as the measurement and recognition of assets, liabilities, income and expenses, the preparation of financial statements, the disclosure of information and the presentation of financial statements. They are based on sound accounting principles and seek to reflect the economic reality of transactions and events that affect companies. One of the main characteristics of IFRS is the emphasis on fair value as the basis for measuring assets and liabilities. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an arm's length transaction. This approach seeks to reflect the market value of assets and liabilities, taking into account current market conditions. In addition, the IFRS also aim to increase the transparency of financial information, requiring the disclosure of relevant and significant information, even if it is not directly related to the financial statements. This includes information about risks and uncertainties, accounting policies, subsequent events, related parties, among others. IFRS are periodically updated by the IASB, which issues new standards and revises existing ones to ensure they are in line with changes in business and the global economy. Companies that adopt IFRS must follow current standards and apply them consistently in their financial statements. The adoption of IFRS brings several benefits to companies, such as improving the quality of financial information, facilitating access to international capital, reducing the costs of preparing financial statements and greater investor confidence. However, the transition to IFRS can also bring challenges, such as the need for training and qualification of accounting professionals, the adaptation of accounting systems and processes and the change in organizational culture. In short, International Accounting Standards (IFRS) are a set of accounting standards that aim to standardize and harmonize the preparation and presentation of financial statements by companies around the world. They increase the transparency of financial information, facilitate comparability of statements, and provide relevant and reliable information to investors and other users of financial statements. The adoption of IFRS brings benefits to companies, but it also requires adaptation and investments in training and accounting systems.