International Financial Reporting Standards (IFRS) is a not-for-profit, public interest organization. The main objective of the IFRS Foundation is to raise the standard of financial reporting and bring about global harmonization of accounting standards.

IFRS was established to develop high-quality, understandable, enforceable, and generally accepted accounting standards. International Accounting Standards Board (IASB) develops IFRS. There are currently 16 IFRSs in issue.

Benefits of IFRS Standards:

1. It brings transparency by international comparability and quality of financial information.
2. It strengthens accountability by reducing the information gap between providers and users of the capital.
3. It contributes to economic efficiency by improving capital allocation and, helps investors in identifying opportunities and risks across the world.

Following are the uses of IFRS:

1. As national requirements.
2. As the basis for all or some national requirements.
3. As an international benchmark for those countries which develop their own requirements.
4. By regulatory authorities for domestic and foreign companies.
5. By companies themselves.

Challenges faced by companies if IFRS is not implemented:

1. The financial statements will differ for the companies who have offices worldwide and use only national accounting standards.
2. Increased complexity while preparing financial statements.
3. Difficulty in comparing and verifying financial statements.
4. Accounting of transactions will differ from country to country if IFRS is not implemented.