Maintaining the books of account is an integral part of running a business. It helps to track finances easily at a later date. Different types of financial statements are prepared to maintain records from multiple perspectives. Recording the data in a financial statement correctly is crucial as it’s used for auditing purposes. There are accounting standards in place to avoid confusion when managing financial data. There are various types of accounting standards that can be followed to record information.
An accounting standard is a set of rules for recording financial data in proper formats. It offers complete guidance on different aspects of a financial transaction. A business may adopt one depending on the country they operate in. However, global companies operating in multiple countries must follow a global standard to avoid confusion. The International Financial Reporting Standards (IFRS) is a widely adopted accounting standard by multinational organisations. Read on to learn more about IFRS and IFRS audit services.
What is IFRS?
The International Financial Reporting Standard, or IFRS, is a set of rules that guide how financial transactions should be recorded in different financial statements. These standards were developed by the International Accounting Standards Board (IFAB). IFRS offers a comprehensive understanding of how and why different elements in the transaction must be recorded. It is an internationally accepted accounting principle, and most companies adopt this to avoid confusion. It’s essential for producing financial documents which can be compared on a global pedestal. In addition, adopting IFRS promotes transparency and increases accountability. International stakeholders are better informed and can make the right investment decisions after assessing these statements.
Benefits of IFRS audit services
There are several benefits of recording accounting data as per the IFRS standards and conducting audits using the same. If you are an accounting student, working with IFRS audit service providers as an intern can help you learn a lot about international taxation and best practices. There are numerous advantages for businesses working with IFRS audit services. Let’s take a quick at some of the most prominent ones.
- Attract foreign investments
IFRS audit services can help you gain foreign investment opportunities to advance business growth. Recording the data as per the IFRS standards makes it easier for foreign investors to understand the actual financials related to a business. Foreign investors are better positioned to compare the financial statements of multiple international prospects before investing their money. IFRS audit services ensure that your business is complying with all applicable norms. As a result, it boosts the chances of foreign investments.
- Easy to handle international taxation
International taxation is a complex subject; not maintaining your books based on the IFRS principles can create a mess. With IFRS audit services, it’s easier to manage global taxes. It’s easier for international tax authorities to assess your tax liabilities and provide input tax credit wherever possible. It helps to avoid double taxation.
- Eligible for listing on the global stock exchanges
There are different ways to raise capital, and issuing shares is one of the most sought-after when your business has grown to a certain extent. IFRS audit services can make you eligible for listing on the global stock exchanges. Preparing financial statements as per international standards to trade shares and equities internationally is mandatory.
Choose a reliable IFRS audit service provider today!