Which standards create a common global language for accounting but are not used in the U.S.?

International Financial Reporting Standards (IFRS) create a common global language for accounting that is widely adopted outside of the United States. IFRS is designed to bring transparency, accountability, and efficiency to financial markets around the world, enhancing comparability and consistency in financial reporting across different countries. These standards serve as a framework for the preparation of financial statements, ensuring that they are easily understandable and comparable for investors and stakeholders globally.

While the U.S. primarily uses Generally Accepted Accounting Principles (GAAP), which are tailored to domestic companies, IFRS prepares entities to meet international expectations. This distinction highlights the unique role of IFRS in fostering international trade and investment by providing a standardized approach to financial reporting among numerous countries.