Requirements of IFRS
So, imagine you're playing a game and there are rules you have to follow to play fairly. In the same way, businesses have to follow certain rules called International Financial Reporting Standards (IFRS) to show how much money they have and how well they're doing.
Basically, IFRS tell businesses how to properly prepare their financial statements, like balance sheets and income statements, so that everyone can understand how much they spent, made, and owe. This helps investors and creditors make better decisions about whether to give the business money or not.
Some of the requirements of IFRS include recording all financial transactions, using standardized vocabulary and formatting, and providing enough information to show how the business arrived at their financial results. It's like making sure all the pieces of a puzzle fit perfectly together so that everyone can see the full picture of the business.
Overall, IFRS helps businesses play fair and show others what they're really worth.
Basically, IFRS tell businesses how to properly prepare their financial statements, like balance sheets and income statements, so that everyone can understand how much they spent, made, and owe. This helps investors and creditors make better decisions about whether to give the business money or not.
Some of the requirements of IFRS include recording all financial transactions, using standardized vocabulary and formatting, and providing enough information to show how the business arrived at their financial results. It's like making sure all the pieces of a puzzle fit perfectly together so that everyone can see the full picture of the business.
Overall, IFRS helps businesses play fair and show others what they're really worth.