IFRS is the globally recognized financial reporting framework designed to harmonize capital markets through transparency and comparability. Moving away from rigid, rule-based accounting, IFRS adopts a principles-based approach, requiring professional judgment to reflect the true economic substance of transactions.
By requiring fair-value measurements and comprehensive disclosures, IFRS reduces information asymmetry between management and investors. This consistency supports efficient global resource allocation and ensures corporate performance is evaluated fairly across different jurisdictions.
The IFRS Foundation manages both IFRS Accounting Standards and IFRS Sustainability Disclosure Standards (ISSB), creating a comprehensive reporting framework.
IFRS addresses financial performance, while ISSB (S1/S2) covers sustainability risks. Together, they offer investors a unified global baseline for assessing financial health and long-term corporate value.