Describe the role of the International Financial Reporting Standards (IFRS).

The role of the International Financial Reporting Standards (IFRS) is fundamentally about establishing a unified and transparent framework for the preparation of financial statements by public companies on a global scale. This set of standards aims to provide consistency and comparability in financial reporting across different jurisdictions, which is essential for investors, regulators, and other stakeholders who rely on such financial information to make informed decisions.

By setting a global standard, IFRS helps eliminate discrepancies that might arise from regional accounting principles, facilitating a better understanding of financial statements regardless of the geographical location of the company. This is particularly crucial in today’s interconnected global economy, where investors are increasingly looking for investment opportunities across borders.

In contrast, creating industry-specific accounting standards does not align with the primary aim of IFRS, which seeks to address all businesses under a common framework rather than tailoring regulations to individual sectors. Additionally, while IFRS does contribute to the regulation of financial markets by improving the quality of reporting, this is an indirect effect rather than a direct regulatory role. Finally, standardizing tax reporting is outside the scope of IFRS as these standards focus primarily on financial reporting, not taxation. Thus, the answer reflects the core purpose of IFRS in providing a universal basis for preparing public company financial statements,