IRFS stands for International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board. These standards offer companies in more than 100 countries, including Canada and the European Union, guidance on how to prepare their financial statements. Publicly traded companies in these countries are required to follow these standards.
A less complex version of the IFRS, known as the IFRS for SMEs, provides small and medium-sized companies with guidelines on financial reporting. This version of the IFRS contains topics that are relevant to small and medium-sized companies only. It requires fewer disclosures and is written in a easy-to-understand language. This set of standards is revised less frequently than the full IFRS.