International Financial Reporting Standards
International Financial Reporting Standards (IFRS) are rules that grown-ups use to keep track of money in a way that everyone agrees is fair. Just like how we have rules for playing games fairly, IFRS are rules for companies around the world to report their money fairly so that people can understand their financial statements easily.
Think of it like baking a cake. You use a recipe to make sure that you have all the ingredients and that you follow the steps correctly. Similarly, companies use IFRS as a recipe to report their financial information by telling us their income, expenses, assets, and debts in a way that everyone will understand.
IFRS has the same rules that everyone around the world must follow when reporting their financial statements. It is used in more than 120 countries, which makes it easier for companies to do business with each other.
IFRS helps us compare financial statements of different companies because they follow the same recipe. It enables us to make informed decisions about investing, lending money, or buying a business.
In summary, IFRS is a set of rules for companies to report their financial information in a consistent and fair manner, so we can easily understand their financial statements and make better-informed financial decisions.
Think of it like baking a cake. You use a recipe to make sure that you have all the ingredients and that you follow the steps correctly. Similarly, companies use IFRS as a recipe to report their financial information by telling us their income, expenses, assets, and debts in a way that everyone will understand.
IFRS has the same rules that everyone around the world must follow when reporting their financial statements. It is used in more than 120 countries, which makes it easier for companies to do business with each other.
IFRS helps us compare financial statements of different companies because they follow the same recipe. It enables us to make informed decisions about investing, lending money, or buying a business.
In summary, IFRS is a set of rules for companies to report their financial information in a consistent and fair manner, so we can easily understand their financial statements and make better-informed financial decisions.