International Standards of Accounting and Financial Reporting

International standards of accounting and financial reporting (IFRS), also known by its initials in English (IFRS), International Financial Reporting Standard, are accounting standards adopted by the IASB, a private institution based in London. The Financial Reporting Standards (IFRS) are the International Standards or international standards development activities are a manual accounting and accounting, as defined therein guidelines for keeping records of how the world is acceptable .

The rules are known by the acronym IAS (International Accounting Standards) and IFRS (International Financial Reporting Standards) depending on when they were approved and qualify through the "interpretations" that are known by the acronym SIC and IFRIC (Committee interpretations of International Financial Reporting Standards).

The accounting standards issued between 1973 and 2001, are known as International Accounting Standards (IAS) were issued by the International Accounting Standards, International Accounting Standards Committee (IASC), the forerunner of the current Board of International Accounting Standards, Intemational Accounting Standards Board, IASB. Since April 2001, year of establishment of the IASB, the agency adopted all IAS and continued their development, calling the new standards with International Financial Reporting Standards (IFRS).

The Financial Reporting Standards (IFRS) are becoming the universal accounting language to ensure that in all countries speak the same language financial information homogenizing frameworks and facilitating the interaction of markets, taking a step towards globalization.

In recent years, countries of the European Union, Canada, Hong Kong, South Africa, Australia, Russia, Chile, Panama, Venezuela and Ecuador, among others, have adopted International Financial Reporting Standards (IFRS), directing its economy towards strengthening investor confidence, which shows the great interest in this topic to the world.

Structure of IFRS (International Financial Reporting Standards)

IFRS (International Financial Reporting Standards) are considered "principled" as a set of rules in the sense that establish general rules and dictating specific treatments. The Financial Reporting Standards (IFRS) include:

International Financial Reporting Standards.

International Accounting Standards.

Interpretations IFRS (International Financial Reporting Standards).

IFRS for Small and Medium Enterprises (SMEs)

In July 2009, published version of the International Financial Reporting Standards for Small and Medium Enterprises (IFRS for SMEs, for its acronym in English). IFRS (International Financial Reporting Standards) for SMEs is a simplified version of IFRS (International Financial Reporting Standards).

The 5 characteristics of this simplification are:

Some topics in IFRSs (International Financial Reporting Standards) Totals are omitted because they are not relevant to typical SMEs.

Some alternatives to accounting policies in the IFRS (International Financial

Reporting Standards) Totals are not allowed as a simple method is available for SMEs.

Simplification of many recognition and measurement principles of those in IFRS (International Financial Reporting Standards) Totals.

Substantially fewer revelations.

Simplification of Reason.