What is the primary goal of International Financial Reporting Standards (IFRS)?

The primary goal of International Financial Reporting Standards (IFRS) is to establish a globally comparable framework for financial reporting. IFRS aims to create a common accounting language that enhances transparency, consistency, and comparability of financial statements across different countries and industries. This is crucial for investors, regulators, and analysts who rely on financial statements to make informed decisions.

By providing a set of standardized principles, IFRS helps ensure that financial statements are prepared in a manner that is understandable and comparable, regardless of the geographical location of the reporting entity. This is particularly important in a global economy where businesses operate in multiple jurisdictions and investors seek to assess financial performance consistently across borders.

Ultimately, the adoption of IFRS facilitates better access to capital markets, improves investor confidence, and promotes cross-border investment by providing clearer insights into the financial health of companies worldwide.