International Financial Reporting Standards And International Accounting Standards

862 Words Jun 17th, 2016 4 Pages
The current context of globalization, financial markets mundialization, internationalization of production and intensification of international trade relations denotes references that justify the need for a single set of universally accepted financial standard, which will reduce international accounting differences between the local accounting referential (Valentin &Dumitru, 2013). Gaps in economic development, political ambitions and cultural contradictions create significant differences at the level of the financial reporting, thus the main objective of many professional international accounting bodies is to reduce those differences, by supporting national accounting regulatory bodies in the construction of a solid base of common financial reporting principles, to ensure the comparability of the financial statements. The International Financial Reposting Standards (IFRS) is the result of the professionals’ objective.
The International Financial Reporting Standards (IFRS) The International Financial Reporting Standards (IFRS) is defined as a single set of high-quality financial reporting standards developed by the International Accounting Standards Board (IASB) for global use (Sawyers, Raabe, Whittenburg, & Gill, 2015). The purpose of the standards is to provide investors and other users of financial statements, the ability to compare the financial performance of publicly listed companies on a like-for-like basis with their international peers; since the standards are…

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