IFRSnäkökulma

IFRSnäkökulma translates to "IFRS perspective" in English. It refers to the viewpoint adopted when interpreting and applying International Financial Reporting Standards (IFRS). This perspective emphasizes the economic substance of transactions over their legal form, aiming to provide a true and fair view of an entity's financial position and performance. When considering an IFRSnäkökulma, accountants and financial analysts look beyond the literal wording of a standard to understand the underlying economic reality and its implications for financial reporting. This often involves professional judgment and a deep understanding of the principles underpinning IFRS. For instance, a transaction that appears to be a sale on paper might be treated as a financing arrangement if its economic substance suggests that control and risks have not been transferred. Similarly, leased assets are recognized on the balance sheet under IFRS, reflecting their economic use by the lessee, regardless of the traditional legal distinction between ownership and lease. Adopting an IFRSnäkökulma is crucial for consistent and comparable financial reporting across different entities and jurisdictions, ensuring that users of financial statements can make informed decisions based on a standardized and principle-based framework.