International Financial Reporting Standards (IFRS) are a set of globally accepted accounting rules developed by the International Accounting Standards Board (IASB). These standards provide a common language for financial reporting, making it easier to compare the financial statements of companies across international borders.

IFRS focuses on transparency, accountability, and efficiency in financial reporting. It outlines how companies should recognize, measure, present, and disclose financial transactions and events in their financial statements. IFRS is principles-based, offering guidelines rather than strict rules, which allows for flexibility and the use of professional judgment.

In Canada, publicly accountable enterprises, such as publicly traded companies and financial institutions, are required to use IFRS. Private enterprises may choose between IFRS and Accounting Standards for Private Enterprises (ASPE).

Adopting IFRS enhances comparability for investors, improves access to global capital markets, and supports informed decision-making. Financial statements prepared under IFRS include the balance sheet, income statement, statement of changes in equity, and cash flow statement, all prepared in a consistent manner worldwide.

While IFRS promotes global consistency, it also requires rigorous understanding and application. Companies transitioning to IFRS often need to adjust internal systems and retrain staff to ensure accurate compliance.

In summary, IFRS is essential for standardized, international financial reporting and investor confidence.