International Financial Reporting Standards (IFRS)

are the “universal language” of business, used by over 140 countries to ensure that financial statements are transparent, comparable and reliable across borders.

Before IFRS, each country operated its own “Local GAAP” (Generally Accepted Accounting Principles) however this meant it was not possible to make effective comparison of organisations operating in the same sector but in different countries

In response to this IFRS was created to:

Standardise: Ensure everyone uses the same rules to measure profit, assets and debt.
Attract capital: Investors are more likely to invest in a business if they trust the numbers.
Reduce complexity: Multinational firms can consolidate global subsidiaries into one set of results more easily.

The system is overseen by the IFRS Foundation, a non-profit organization with two main engines:

The IASB (International Accounting Standards Board) who write the accounting standards.
The ISSB (International Sustainability Standards Board) a newer body (formed at COP26) that writes Sustainability standards.

2026 milestone: We are now seeing the “Great Convergence” where financial reporting and sustainability reporting are being merged into a single integrated report.

The "Full Set" of IFRS Financials

Statement of Financial Position (Balance Sheet)
Statement of Comprehensive Income (P&L)
Statement of Changes in Equity
Statement of Cash Flows
Explanatory Notes

IFRS is Principles-Based, not Rules-Based which means it focuses on the “spirit” of the transaction: If a transaction looks like a sale but is actually a loan, IFRS requires it to be recorded as a loan. Most assets are valued at the current market rate, not what was paid for them previously (historic cost). It assumes that the business is a going concern that will continue operating for the foreseeable future.

Our Services

IFRS provides the foundation of everything we do. Irrespective of which technology platform we deploy, we ensure the software adopts these global rules and our clients remain compliant, audit-ready and attractive to investors.

Contact us for further details

For advice about International Financial Reporting Standards (IFRS), speak to Millennium Consulting today.