International Financial Reporting Standards

Defining the International Financial Reporting Standards (IFRS)

International Financial Reporting Standards (IFRS) are a set of accounting standards developed by the International Accounting Standards Board (IASB). They provide principles and guidance for preparing financial statements that are consistent, transparent, and comparable across international borders. IFRS acts as a common accounting language, enabling companies, investors, and regulators to understand financial information more easily, regardless of where a company operates.

Why are International Financial Reporting Standards important?

The main objective of IFRS is to provide information that is useful to investors, lenders, and other stakeholders when making decisions about providing resources to an entity. By focusing on relevance, faithful representation, and comparability, IFRS helps ensure that financial statements reflect the underlying economics of transactions.

Organizations benefit from IFRS because it:

• Promotes transparency and consistency in financial reporting across jurisdictions.
• Strengthens accountability by requiring clear disclosure of performance and financial position.
• Supports efficient global capital markets by making it easier for investors to compare companies internationally.
• Reduces complexity for multinational corporations that otherwise would need to follow multiple sets of accounting rules.

More than 140 jurisdictions require or permit the use of IFRS, making it the most widely adopted accounting framework worldwide. The United States continues to apply Generally Accepted Accounting Principles (US GAAP), which differ in structure and emphasis, although both systems aim to ensure accurate and reliable reporting.

Core elements of IFRS

The IFRS framework is principles-based, meaning it sets broad guidelines rather than detailed rules. This approach allows flexibility while still ensuring consistency. Key elements include:

• Objective of financial reporting: To provide useful information about a company’s assets, liabilities, equity, income, and expenses.
• Qualitative characteristics: Information must be relevant, faithfully represent what it claims, and be comparable, verifiable, timely, and understandable.
• Recognition and measurement: IFRS defines when an item should be included in financial statements and how it should be valued (e.g., historical cost, fair value, or fulfillment value).
• Presentation and disclosure: Standards require structured financial statements, supported by notes and disclosures that explain assumptions, judgments, and risks.
• Key standards:
  • IAS 1 – Presentation of Financial Statements
  • IFRS 9 – Financial Instruments
  • IFRS 15 – Revenue from Contracts with Customers
  • IFRS 16 – Leases

The IFRS Glossary provides standardized definitions of essential accounting terms, such as asset and liability, ensuring consistency across all standards.

How Impero supports compliance with IFRS

Achieving and maintaining IFRS compliance requires accuracy, documentation, and reliable internal controls. Impero helps organizations by:

• Centralizing internal controls into a single platform to ensure financial reporting processes are consistent.
• Automating workflows to reduce human error and keep reporting cycles on track.
• Enhancing audit readiness by maintaining documentation and evidence of compliance in one place.
• Providing transparency and oversight so finance teams and executives can trust the integrity of reported data.

With Impero, companies can embed IFRS compliance into their day-to-day processes, making reporting more efficient while supporting governance and stakeholder confidence.

Get Started with the Impero Platform for Your IFRS Processes

Are you looking to simplify IFRS compliance and reduce the complexity of managing financial reporting controls?
Impero provides a flexible, intuitive, and audit-ready platform that enables you to structure, automate, and oversee your IFRS-related activities with confidence.

👉 Reach out to our team to learn how Impero can support your IFRS compliance with automation, control ownership, and real-time visibility across your financial control environment.