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What is IFRS (International Financial Reporting Standards)?

IFRS (International Financial Reporting Standards) are accounting standards issued by the International Accounting Standards Board (IASB) that govern how financial statements are prepared in over 140 countries.

Explanation

IFRS and GAAP are the two dominant financial reporting frameworks globally. While the U.S. uses GAAP, most other major economies use IFRS. Key differences include lease accounting (IFRS 16 vs. ASC 842), revenue recognition, and inventory costing methods. For multinational accounting teams, the coexistence of IFRS and GAAP creates additional complexity in consolidation and reporting. Automation can help manage this complexity by applying the correct standard consistently based on entity, transaction type, and reporting requirement — reducing the risk of applying GAAP rules to IFRS entities or vice versa.

How Rima relates

Rima's Blueprints can be configured to apply different extraction and coding rules for different entities, supporting teams that manage both IFRS and GAAP reporting requirements.

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