IFRS — International Financial Reporting Standards

The International Financial Reporting Standards (IFRS) are a set of global accounting standards developed by the International Accounting Standards Board (IASB) of the IFRS Foundation. They specify how companies present their transactions and financial position in financial statements, aiming for transparency, comparability, and quality of financial reporting worldwide.

In the EU, IFRS have been mandatory for the consolidated financial statements of listed companies since 1 January 2005 (IAS Regulation (EC) No 1606/2002). The standards are adopted into European law through the EU endorsement process. Globally, IFRS are applied or required in over 140 jurisdictions.

The IFRS framework comprises 19 IFRS standards (IFRS 1–19), 25 legacy IAS standards, and numerous interpretations. Key recent standards include IFRS 9 (Financial Instruments, since 2018), IFRS 15 (Revenue from Contracts with Customers, since 2018), IFRS 16 (Leases, since 2019), and IFRS 17 (Insurance Contracts, since 2023). In April 2024, the IASB also issued IFRS 18 (Presentation and Disclosure in Financial Statements), which replaces IAS 1 and becomes effective from 1 January 2027. Since 2021, the International Sustainability Standards Board (ISSB) has been developing complementary sustainability disclosure standards (IFRS S1, S2).

The IASB's predecessor, the International Accounting Standards Committee (IASC), was founded in June 1973 by professional bodies from ten countries and issued the International Accounting Standards (IAS). On 1 April 2001, the newly established IASB assumed responsibility for standard-setting and designated new standards as IFRS.

In July 2002, the European Parliament and the Council adopted the IAS Regulation (EC) No 1606/2002, mandating the use of IFRS for consolidated financial statements of EU-listed companies from 2005. This was a milestone for the global harmonisation of accounting. The IFRS Foundation was renamed on 1 July 2010 (previously IASC Foundation). In November 2021, the ISSB was established at COP26 in Glasgow, and in June 2023 it finalised the first sustainability standards IFRS S1 and S2. By 2026, 36 jurisdictions had taken steps to adopt the ISSB standards.

IFRS apply globally to a wide range of entities and reporting contexts:

• EU: Mandatory for the consolidated financial statements of all public-interest entities (equity or debt securities on a regulated market). Member States may also permit or require IFRS for individual financial statements and non-listed entities.
• Global: Over 140 jurisdictions worldwide require or permit IFRS for all or most publicly listed companies.
• Financial institutions: IFRS 9 (Financial Instruments) and IFRS 17 (Insurance Contracts) are of central importance for banks and insurers.
• IFRS for SMEs: A simplified standard for small and medium-sized entities without public accountability.
• ISSB standards: IFRS S1 (general sustainability disclosure) and IFRS S2 (climate-related disclosure) target publicly accountable entities worldwide; adoption into national regulations is ongoing.

• Fair presentation: Financial statements must give a true and fair view of the entity's financial position, financial performance, and cash flows.
• IFRS 9 — Financial Instruments: Classification and measurement of financial assets based on business model and cash flow characteristics; expected credit loss (ECL) model for impairment; revised hedge accounting rules.
• IFRS 15 — Revenue: Five-step model for recognising revenue from contracts with customers; replaces IAS 18 and IAS 11.
• IFRS 16 — Leases: Lessees recognise virtually all leases on the balance sheet (right-of-use asset and lease liability).
• IFRS 17 — Insurance Contracts: Uniform measurement model for insurance contracts using the Building Blocks Approach; effective since 1 January 2023.
• EU endorsement: Every new or amended standard must undergo the EU endorsement process before it becomes applicable in the EU.
• ISSB standards: IFRS S1 and S2 require disclosure of sustainability-related risks and opportunities and climate-related information within general purpose financial reporting.

The summary describes '18 IFRS standards (IFRS 1–18)'. Since May 2024 IFRS 19 'Subsidiaries without Public Accountability: Disclosures' (effective 1 January 2027) exists, bringing the total to 19.

History/summary mention the June 2023 finalisation of IFRS S1/S2 but not the effective date (reporting periods from 1 January 2024); also absent from key_dates.

The summary references 18 IFRS standards but does not state that IFRS 18 'Presentation and Disclosure in Financial Statements' was issued in April 2024, replaces IAS 1, and is effective from 1 January 2027. Entirely absent from key_dates.

IFRS had no connections. Linked to CRD/CRR (IFRS used in capital calculations).