International Financial
Reporting Standards (IFRS) are a set of accounting standards, developed
by the International Accounting Standards Board (IASB), that are becoming
the global standard for the preparation of public company financial
statements. In the United States, the Securities and Exchange Commission
(SEC) is considering taking steps to set a date to allow U.S. public
companies to use IFRS, and perhaps make its adoption mandatory.
By adopting IFRS, a business can present its financial statements
on the same basis as its foreign competitors, making comparisons easier.
Furthermore, companies with subsidiaries in countries that require
or permit IFRS may be able to use one accounting language company-wide.
Companies also may need to convert to IFRS if they are a subsidiary
of a foreign company that must use IFRS, or if they have a foreign
investor that must use IFRS. In addition, companies may benefit if
they wish to raise capital abroad.
