The IFRS are a collection of international accounting standards that companies must apply when preparing financial reports.
Since 1 January 2005, capital market-oriented companies have been required by an EC regulation to prepare their consolidated financial statements in accordance with IFRS, which have been developed by the International Accounting Standards Board (IASB) since 2003.
IFRS ensures that companies' financial reports are transparent and comparable, making it easier for investors to make informed decisions. The standards cover all aspects of financial reporting, such as accounting, measurement, preparation of financial statements and disclosure of information.
Although IFRS are mandatory for publicly traded companies, other companies can also apply the standards voluntarily. The standards are internationally recognised and are used in many countries as the basis for preparing financial reports.
The IFRS are designed to focus on the information function for the investor. They are intended to ensure a uniform and transparent presentation of companies' financial reports and thus strengthen investors' confidence in the capital markets.
Overall, IFRS have a major influence on international accounting and contribute to the creation of transparent and comparable financial reports, which helps to strengthen investor confidence in the capital markets.
