What is the goal of IFRS Standards?

• A. To develop a single set of high quality, understandable, enforceable and globally accepted financial reporting standards based upon clearly articulated principles.
• B. To create a set of standards only for European markets.
• C. To replace all non-GAAP measures with GAAP equivalents.
• D. To defer accounting decisions to national regulators.

Answer: (A)

The goal is to develop a single set of high-quality, understandable, enforceable and globally accepted financial reporting standards based upon clearly articulated principles. This creates a common, globally adopted framework so financial statements are comparable across borders, helping investors and other users assess and compare performance more easily. It’s not limited to a region, nor does it aim to replace all non-GAAP measures with GAAP equivalents, and it doesn’t involve deferring accounting decisions to national regulators—the aim is harmonization under a universal set of standards.