IFRS are sometimes confused with International Accounting Standards (IAS), which are the older standards that IFRS replaced.

Many of the standards forming part of IFRS replaced those in International Accounting Standards (IAS) which was issued between 1973 and 2001.

The new IASB took over the responsibility for setting International Accounting Standards on April 1, 2001. The first meeting of the new Board resulted in the adoption of existing standards which the IASB has continued to develop and rename as IFRS.

As each country utilizes its own set of rules, the International Financial Reporting Standards aims to make international comparisons as easy as possible. IFRS are used in European Union, Hong Kong, Australia, Malaysia, Pakistan, GCC countries, Russia, South Africa, Singapore and Turkey. The synchronization of standards is still an ongoing process in the international accounting community worldwide.

IFRS financial statements consist of the following:

1. Statement of Financial Position: a summary of an organization’s balances
2. Statement of Comprehensive Income: indicating how the revenue is transformed into the net income
3. Statement of Changes in Equity/ Statement of Recognised Income or Expense
3. Statement of Cash Flows: showing changes in balance sheet and income accounts affect cash and cash equivalents, and breaking analysis to operating, investing, and financing activities.
4. notes, including a summary of the significant accounting policies