The Ultimate Guide: What is IFRS & How It Benefits Your Business In Malaysia

What is IFRS?

IFRS was developed by the International Accounting Standards Board (IASB) in the 1990s as a way to standardise accounting across different countries. Today, IFRS is used by over 200 countries around the world, including Malaysia.

It was created to create a common accounting language so that businesses and their financial statements are consistent and reliable across companies and across countries.

The Importance of IFRS For Your Business
International Financial Reporting Standards (IFRS) are important for both small and medium- sized business (SME’s) accounting and financial reporting process. They help to ensure that your company is accurately recording its financial results.

If your company is looking to expend internationally. then it is essential for you to know what IFRS is. So that you will understand the benefits that IFRS can bring about for your business as a whole.

The Top Benefits of Using IFRS

There are number of benefits of using IFRS that make it an essential component to every company’s accounting system, as outlined below it helps with things like:

• Simplified Accounting
  IFRS is designed to streamline financial reporting by providing a consistent framework for accounting practices. This reduces complexity, enhances comparability, and simplifies compliance with financial disclosure regulations.
• Better Disclosure
  IFRS promotes transparency by requiring detailed and standardized disclosures. This improves the clarity and accessibility of financial statements, helping investors and stakeholders better assess a company’s financial health and performance.
• Better Reporting
  IFRS enhances the quality and consistency of financial reporting across industries and international borders. This ensures that financial statements are reliable and comparable, making it easier for global investors, regulators, and other users to make informed decisions.
• Better Control
  By requiring detailed reporting and consistent accounting policies, IFRS helps organizations implement stronger internal controls and risk management practices. It supports better oversight of financial operations and promotes accountability across departments.

Additional Benefits of Adopting The IFRS

The adoption of IFRS affects not only the enterprise itself but also users of financial statements and other stakeholders. The application of IFRS will have a great impact on user of financial statements such as investors, shareholders, and financial institutions.

Lastly, IFRS has the characteristics comparability and high transparency, which makes it easier to present data and financial reports to potentials investors and stakeholders alike. Financial institutions will also benefit from using IFRS.

In a nutshell, IFRS is a framework for accounting and reporting financial information that comes from a set of internationally-recognizes standards. If you would like to understand and learn more about what is IFRS, and the benefits of IFRS, the kindly click here to learn more.