IFRS stands for International Financial Reporting Standards, a set of global accounting rules used by over 140 jurisdictions as of 2026.
IFRS is a set of global accounting standards used by over 140 jurisdictions worldwide as of 2026.
IFRS is a set of global accounting standards used by over 140 jurisdictions worldwide as of 2026.
International Financial Reporting Standards (IFRS) are the global accounting framework used by more than 140 jurisdictions to make financial statements transparent and comparable worldwide.IFRS Foundation
IFRS stands for International Financial Reporting Standards. These standards give companies one consistent rulebook for recording and presenting financial transactions. By 2026, IFRS will be mandatory in more than 140 countries—including the European Union, South Korea, Brazil, India, and Australia—while the U.S., China, and Japan will keep using their own systems like GAAP or CAS.IFRS Foundation
At their core, IFRS aim to make financial reports consistent across borders. Without this shared language, investors, regulators, and analysts would struggle to compare companies from different countries. Take Germany, for instance: any publicly traded company there must follow IFRS to list shares on European stock exchanges, as the EU has required since 2005.European Central Bank
IFRS uses a principles-based approach, while U.S. GAAP uses a rules-based approach.
IFRS uses a principles-based approach, while U.S. GAAP uses a rules-based approach.
| Standard | Approach | Primary Users | Flexibility |
|---|---|---|---|
| IFRS | Principles-based | Global (140+ countries) | More interpretive; allows professional judgment |
| GAAP | Rules-based | United States | Highly prescriptive; detailed guidance |
IFRS operates on broad principles rather than rigid rules, which gives companies more flexibility in how they apply them. Look at IFRS 16, where leases get capitalized on the balance sheet. Meanwhile, U.S. GAAP (ASC 842) piles on far more detailed classification rules. That difference can really change how assets and liabilities appear on financial statements, depending on which standard a company follows. As of 2026, the FASB keeps GAAP running, while the IASB oversees IFRS.Financial Accounting Standards Board
IAS are older standards replaced by IFRS; IAS 16 remains in use for historical reporting.
IAS are older standards replaced by IFRS; IAS 16 remains in use for historical reporting.
International Accounting Standards (IAS) were IFRS’s predecessors. First introduced in 1973, IAS set early global accounting norms, like IAS 16 (Property, Plant, and Equipment). Since 2001, though, new standards have been labeled IFRS, while older IAS rules stay in play for legacy reporting. Take IAS 17 (Leases), which got replaced by IFRS 16 in 2019—yet companies still reference IAS when checking historical compliance. The IASB keeps updating IFRS but hasn’t issued new IAS standards since then.IFRS Foundation
By 2026, IFRS is mandatory for publicly traded companies in the EU, UK, Canada, Australia, Brazil, India, South Korea, and Japan.
By 2026, IFRS is mandatory for publicly traded companies in the EU, UK, Canada, Australia, Brazil, India, South Korea, and Japan.
IFRS dominates most of the world’s major economies. By 2026, these places will require IFRS for publicly traded companies:
- European Union (mandatory since 2005)
- United Kingdom (post-Brexit, UK adopted IFRS as UK-IFRS)UK Government
- Canada (allowed since 2011)Canadian Federation of Independent Business
- Australia, Brazil, India, South Korea, and Japan (for consolidated financial statements)IFRS Foundation
Not on the mandatory IFRS list? The U.S., China, and smaller economies like Niger and Bolivia. The U.S. keeps using GAAP, while China relies on its own Chinese Accounting Standards (CAS), which are slowly moving closer to IFRS but aren’t identical yet.Ministry of Finance, China
As of 2026, the IASB maintains 17 active IFRS standards and 29 legacy IAS standards.
As of 2026, the IASB maintains 17 active IFRS standards and 29 legacy IAS standards.
By 2026, the IASB will have issued 17 IFRS standards and still maintains 29 older IAS standards for historical or transitional use. The ones you’ll run into most often include:
- IFRS 9 (Financial Instruments)IFRS Foundation
- IFRS 15 (Revenue from Contracts with Customers)IFRS Foundation
- IFRS 16 (Leases)IFRS Foundation
- IFRS 17 (Insurance Contracts)IFRS Foundation
These standards don’t stay the same forever—they get updated over time. IFRS 17, for example, went live in 2023 and is still a big deal for insurers worldwide as of 2026.IFRS Foundation
Why do we need IFRS?
IFRS specifies how businesses need to maintain and report their accounts. Created to establish a common accounting language, the goal of these international financial reporting standards is to make financial statements coherent and consistent across different industries and countries.
How is IFRS different from GAAP?
The primary difference between the two systems is that GAAP is rules-based and IFRS is principles-based. Consequently, the theoretical framework and principles of IFRS leave more room for interpretation and often require lengthy disclosures on financial statements.
What is the difference between IFRS and IAS?
International Accounting Standard (IAS) and International Financial Reporting Standard (IFRS) serve the same purpose. The difference? IAS represents older accounting standards, such as IAS 17 Leases. IFRS, on the other hand, represents newer ones, like IFRS 16 Leases.
Which countries have adopted IFRS?
Adoption: IFRS Standards are required in more than 140 jurisdictions and permitted in many parts of the world, including South Korea, Brazil, the European Union, India, Hong Kong, Australia, Malaysia, Pakistan, GCC countries, Russia, Chile, Philippines, Kenya, South Africa, Singapore, and Turkey.
Is UK GAAP still used?
Most of the various SORP-issuing bodies have revised their SORPs in light of FRS 102. As the UK GAAP regime has been in place for years now, preparing either parent company or subsidiary accounts under either FRS 101 or FRS 102 should have become routine.
Who uses GAAP and IFRS?
IFRS is used in more than 110 countries around the world, including the EU and many Asian and South American countries. GAAP, however, is only used in the United States. Companies operating in both the U.S. and overseas often face extra accounting complexities.
What do IFRS do?
International Financial Reporting Standards (IFRS) set common rules so financial statements can be consistent, transparent, and comparable worldwide. They specify how companies must maintain and report their accounts, defining types of transactions and other events with financial impact.
How many IFRS do we have?
Here’s the list of IFRS and IAS issued by the International Accounting Standards Board (IASB) in 2019. Back then, there were 16 IFRS and 29 IAS. IAS will be replaced by IFRS once finalized and issued by the IASB.
How many countries are using IFRS?
As many as 120+ countries currently use IFRS globally.
Is IAS part of IFRS?
What is IAS and IFRS? The IAS was a set of standards developed by the International Accounting Standards Committee (IASC). First launched in 1973, they’ve since been replaced by IFRS. IFRS is a newer set of standards developed by the International Accounting Standards Board (IASB).
What does IAS 16 say?
IAS 16 prescribes that an item of property, plant and equipment should be recognised (capitalised) as an asset if it’s probable future economic benefits will flow to the entity and the asset’s cost can be measured reliably.
Are IAS still in use?
International Accounting Standards (IAS) are older accounting standards issued by the International Accounting Standards Board (IASB), an independent international standard-setting body based in London. The IAS were replaced in 2001 by International Financial Reporting Standards (IFRS).
Which country does not use IFRS?
The U.S., China, Egypt, Bolivia, Guinea-Bissau, Macao, and Niger don’t allow their domestic publicly traded companies to use International Financial Reporting Standards.
Does Germany use IFRS?
Germany has already adopted IFRS Standards for the consolidated financial statements of all companies whose securities trade in a regulated market. As an EU member state, Germany follows the IAS Regulation adopted by the European Union in 2002.
WHO issued IFRS?
This page contains links to summaries, analysis, history, and resources for International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB).
