Who follows IFRS?

IFRS has been adopted by more than 70 countries worldwide. Starting in 2005, companies (about 8,000) listed in the European Union (EU) are required to prepare their consolidated accounts according to IFRS, although public companies from the United States and Japan have been given a one-year reprieve. Australian reporting entities are now required to adopt the Australian equivalents to IFRS. Recently, Canada announced its intention to migrate to IFRS as the basis of reporting for publicly accountable entities. Deloitte & Touche maintains a list of countries currently following IFRS (http://www.iasplus.com/country/useias.htm).

What is IFRS?

International Financial Reporting Standards (IFRS), together with International Accounting Standards (IAS), are a "principles-based" set of standards that establish broad rules rather than dictating specific accounting treatments. From 1973 to 2001, IAS were issued by the International Accounting Standards Committee (IASC). In April 2001 the International Accounting Standards Board (IASB) adopted all IAS and began developing new standards called IFRS. It is noteworthy that an IAS remains in effect unless replaced by an IFRS. To learn more, visit the IASB website (http://www.iasb.org).