Aaron DavisIntermediate Accounting 2Mrs. KolarMarch 9, 2014IFRS Research PaperInternational Financial Reporting Standards (IFRS) are a set of accounting standards developed by the International Accounting Standards Board (IASB) that are becoming the global standard for the preparation of financial statements for public companies . IFRS requires that a set of common global reporting standards be used worldwide. IFRS also helps reduce the cost of capital and reporting costs. An accounting standards body, based in London, created IFRS. The International Accounting Standards Board (IASB) succeeded the International Accounting Standards Committee in 2001. Acceptance of IFRS is well known in at least 120 countries. IFRS helps companies present their financial documents on the same basis as their foreign competitors, thus facilitating comparisons. Companies with branches in countries that require or permit IFRS may be able to use a single company-wide accounting standard. Companies may also need to transition to IFRS if they are a division of a foreign company that must use IFRS, or if they have a foreign investor that must use IFRS. Companies can also benefit from the use of IFRS if they wish to increase their capital abroad. One of the downsides of using IFRS is that some believe that US GAAP is the highest standard and that quality will be lost if the world fully accepts it. In addition, some U.S. issuers that do not have significant customers or functions outside the United States may object to IFRS because they may not have a reason in a market to prepare financial statements under IFRS. They may believe that the substantial costs of adopting IFRS outweigh the benefits. U.S. companies using IFRS will face more difficulty in deciding whether or not the SEC will move forward. They included empowering and funding the International Accounting Standards Committee Foundation, improving the ability to use interactive data for IFRS reporting, U.S. education and training related to IFRS, early use limited IFRS, starting with filings in 2010. , which would improve comparability for U.S. investors. Eligibility would depend on the extent to which a company could use IFRS as well as its importance in its given field. The SEC estimates that at least 110 companies could be eligible. In addition, the anticipated timing of future rulemaking by the Commission and application of required use of IFRS, including considerations of whether any required use of IFRS should be presented or sequenced among groups of companies according to their market capitalization..