Here I am going to give you a quick introduction of each to make a simple segregation for easy reference.

As each company needs specific set of rules and laws ( that known as accounting standards) to stay its books of account in correct & true manner so they will build it comparable across trade. That comparison helps investors to analysis the expansion of company and provides correct image.

There are several normal accounting principles within the world and every country has its own typically accepted accounting standard that known as "GAAP".

However, the problem came up once an organization deals with multiple countries. however will capitalist then deals with standards and build the accounts/ books corresponding to perceive the performance and growth to require any decision?

To answer this question, IFRS was developed and adopted by several countries worldwide. IFRS is employed in additional than a hundred and twenty countries as well as the european Union, India, Australia, Malaysia, Pakistan, Russia, African nation and Japan. but USA has not however adopted IFRS.

IFRS stands for "International Financial Reporting Standards". It comprise conceptual framework for the financial accounting.

Quick history of IFRS and IAS:- 

International Accounting Standards (IAS) were the primary international accounting standards that were issued by the International Accounting Standards Committee (IASC), shaped in 1973. They develop globally comparable accounting standards that promote transparency, responsiveness and potency in money statements. After 2001, there has been vital development within the existing world standards quality to create those additional useful in current situation that was adopted by most of the countries except few like, United State of America. Thus, the IASC was replaced by IASB (International accounting principle Board) and every one accounting standards subsequently was referred to as IFRS.

#Takeaway from history#

•  IFRS was introduced by IASB (The International accounting standard Board) in 2001. Before 2001 all those standards are referred to as IAS (International Accounting Standard).
•  IFRS/IAS are globally comparable accounting standards promote transparency, responsiveness, and potency in money markets round the world

• GAAP is mostly accepted accounting principle of country that isn't getting ready accounts supported IFRS. Example- USA prepares books primarily based of US- aggregation rather than IFRS as IFRS not adopted by them.
•  IAS and IFRS each are accounting standards and each are valid except few of IAS are withdrawn and outmoded by new IFRS.
•  IASB is brass for developing International Accounting Standards that was earlier, before 2001 was referred to as IASC (International accounting principle Committee).
•  IFRS Interpretations Committee (IFRIC) makes interpretation on IFRS and IAS problems. Though, earlier the interpretation on IAS was taken by Standing Interpretations Committee (SIC).