IFRS (International Financial Reporting Standards)
The global accounting framework used in 140+ countries for preparing financial statements.
International Financial Reporting Standards (IFRS) are a set of accounting rules developed by the International Accounting Standards Board (IASB) that define how transactions and events should be recognised, measured, and disclosed in financial statements.
IFRS is used in over 140 countries including the EU, UK, Australia, Canada, and much of Asia and Africa. Notable exceptions include the United States (which uses US GAAP) and China (which uses a converged standard).
Key IFRS standards that affect most businesses include IFRS 15 (Revenue Recognition), IFRS 16 (Leases — requiring most leases to be brought onto the balance sheet), IFRS 9 (Financial Instruments), and IAS 36 (Impairment of Assets).
For companies operating across borders, IFRS provides a common accounting language that makes financial statements comparable across jurisdictions. For companies seeking international investment or listing on non-US exchanges, IFRS compliance is typically required.
Related Terms
The simplified accounting framework for private companies in Malaysia, based on IFRS for SMEs.
The US accounting framework governing how financial statements are prepared and reported.
A financial report summarising revenue, costs, and profit over a specific period.
A snapshot of a company's assets, liabilities, and equity at a specific point in time.
Further Reading
Not sure what financial reports your Malaysian business needs? This simple guide explains P&L, balance sheets, and cash flow statements in plain language.
A founder and CFO guide to financial due diligence — what sophisticated investors examine, common red flags, and how to prepare your business.