Latest Study Update Confirms Global Adoption of IFRS Getting Ever Closer
Now that it has completed the 3rd phase of the project which entails studying the jurisdictional adoption of IFRS, International Financial Reporting Standards, the IFRS Foundation now has solid evidence proving that IFRS is now, in the world of financial reporting, the de facto language globally. This third phase involved researching into how IFRS was used in an extra 41 countries, which brings the total of countries now surveyed up to 122.
Each profile describes the decisions of every jurisdiction regarding how IFRS is used. For example, it lists which company uses which type of financial statements and whether the use of IFRS is permitted or required. These profiles explain whether the jurisdiction has made an modifications to the IFRS standards, the wording of auditors reports and also the nature of every jurisdiction's process when it comes to endorsing or adopting IFRS under local regulations and laws.
Key findings, which are based on every one of the 122 jurisdiction profiles are as follows;
Almost every jurisdiction has made public commitments to standards of global accounting and those standards are IFRS
IFRS is already a requirement of most or all of the domestic limited companies in 83%, or 101, of the 122 jurisdictions listed.
The majority of the remaining countries that don't as yet require IFRS for most or all of their domestic listed companies are already permitting IFRS for some of those companies listed.
Approximately 60% of the 101 jurisdictions which have adopted IFRS for their listed companies have now extended a requirement to those large companies that are unlisted and/or financial institutions which are currently unlisted.
Around 90% of these 101 jurisdictions which have already adopted IFRS for their listed companies also permit or require IFRS for their unlisted companies.
Modifications to IFRS are rareties and when they do occur then tend to be limited in applicability and on a temporary basis.