Businesses are operating all over the world. Certain organizations have worldwide existence. If we take an example of Infosys, which is an Indian IT company, works all over the world. The accounting information of one particular company in so many countries will be as per that country’s law and reporting standards. Therefore there will be confusion in considering the accounting information. In order to avoid this confusion, International Accounting Standards Board (IASB) has created one unique accounting language which is called as International Financial Reporting Standards most commonly known as IFRS.International Financial Reporting Standards are the standards which are designed for reporting business affairs, which are understandable all over the world for the purpose of establishing global accounting language. Because of unique way of reporting these standards, companies can be compared at global level.

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