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The Ultimate Guide: What Is IFRS & How It Benefits Your Business in Malaysia

17 Oct 2022

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 (SMB)’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 expand 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 a 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 be as simple as possible, making it easier for companies to report their financial information. This also makes it simpler for companies to comply with regulations, such as regulations that require companies to disclose their financial information in a timely manner.
  • Better Disclosure:IFRS provides a set of standards that companies can use to report their financial information in a way that is more transparent and understandable. This makes it easier for investors and other stakeholders to understand how companies are doing financially.
  • Better Reporting:IFRS provides a set of standards that companies can use to report their financial information in a way that is more transparent and understandable. This makes it easier for investors and other stakeholders to understand how companies are doing financially.
  • Better Control:IFRS provides a set of standards that companies can use to report their financial information in a way that is more transparent and understandable. This makes it easier for investors and other stakeholders to understand the company’s financial performance.

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 users of financial statements such as investors, shareholders, and financial institutions.

Lastly, IFRS has the characteristics of comparability and high transparency, which makes it easier to present data and financial reports to potential 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-recognized standards. If you would like to understand and learn more about what is IFRS, and the benefits of IFRS, then kindly click here to learn more.