Introduction to International Financial Reporting Standard

   PURPOSE OF INTERNATIONAL FINANCIAL REPORTING STANDARD (IFRS)
                    AND INTERNATIONAL ACCOUNTING STANDARDS

International Financial Reporting Standards(IFRS) set common rules to ensure consistency, transparency and comparability of financial statements in different countries. IFRS set the rules on how companies should report on various transactions and events with its financial impact. IFRS set a common accounting language so that businesses and their financial statements can be consistent and reliable from company to company and country to country. What it means is that an investor can pick a financial statement of a Ghanaian based company and compare it with that of any foreign country which has adopted IFRS.

HISTORY OF IFRS

IFRS originated in the European Union, with the intention of making business affairs and accounts accessible across the continent. The idea quickly spread globally, as a common language allowed greater communication worldwide. Although the U.S and some other countries don't use IFRS, most do, and they are spread all over the world, making IFRS the most common global set of standards(Investopedia, 2020)

Presentation of Financial Statements

IFRS financial statements require the following

• Statement of Financial Position
• Statement Comprehensive Income
• Statement of Changes in Equity
• Statement of Cashflows
• Notes, including summary of significant accounting policies