NIIF

NIIF, or Normas Internacionales de Información Financiera (in English: International Financial Reporting Standards, IFRS), are a set of accounting standards issued by the IFRS Foundation and the International Accounting Standards Board (IASB). They provide the principles for recognizing, measuring, presenting, and disclosing financial information in general-purpose financial statements. The goal is to create a common global language for financial reporting to improve comparability and transparency across borders.

Governance and structure: The IFRS Foundation oversees the standards, while the IASB develops and approves new standards and amendments. The IFRS Interpretations Committee issues guidance on the interpretation of existing standards. Updates are issued through new standards, amendments, and interpretations, which are adopted by regulators and, where required, by local legal frameworks.

Scope and adoption: NIIF are used by a large number of jurisdictions for external reporting. In many countries, publicly accountable entities must prepare financial statements in accordance with NIIF. In the European Union, for example, listed companies are required to present consolidated financial statements under NIIF. Some jurisdictions converge their local GAAP toward NIIF or permit its use in addition to other frameworks.

Key standards and characteristics: NIIF covers areas such as financial instruments, revenue, leases, insurance contracts, and presentation of financial statements. Notable standards include IFRS 9 (Financial Instruments), IFRS 15 (Revenue from Contracts with Customers), IFRS 16 (Leases), and IFRS 17 (Insurance Contracts). The standards are largely principle-based, emphasizing the substance of transactions.

Transition and impact: Implementing NIIF involves system changes, restatements of comparatives, and staff training. Benefits often cited include improved comparability and investor confidence; challenges include complexity and transition costs.