International Accounting Standards are globally accepted accounting standards which are issued by International Accounting Standards Board (IASB). The International Accounting Standards Committee (IASC) has regularly issued international accounting standards on various aspects of financial reporting and accounting.From 2000 onwards the international accounting standards have been renamed as International Financial Reporting Standards (IFRS).
The IASB publishes its accounting standards every year in the form of three books: red book, blue book and green book. The red book contains all the IFRS standards that have been published till 1st January of the year to which the particular red book refers to. It omits those IFRS standards that are being withdrawn or are being replaced by a new standard.The blue book issued in a particular year contains only those standards which have become effective by 1st January of that year. So, for instance the blue book of the year 2015 will contain only those IFRS standards that have become effective by 1st January 2015. If a newly issued accounting standard is to become effective by 1st April, 2015 then the blue book of 2015 will not contain that standard.
The green book of a particular year contains those standards which have been issued by 1st July of that year. For instance the green book of the year 2015 will contain all the standards that have been issued till 1st July 2015. It will also include those standards which have been issued by 1st July 2015 but will become effective after it. The IASB started publishing green book, from the year 2007 onwards.The aim of publishing these three books annually is to keep the accounting and financial world informed about the latest IFRS standards.
The world is converging towards adoption of one set of accounting standards, represented by IFRS. A common accounting standard globally is one of the needs of the globalized world. Many countries have already merged their national Generally Accepted Accounting Principles (GAAP) with IFRS. India too is moving towards adoption of IFRS. IFRS makes financial reporting easier, transparent and more relevant for all the stakeholders who use the accounting information given in financial statements.Knowledge of IFRS is therefore important for those working in the area of accounting and finance. There are many training consultancies in India today that provide IFRS training and certification.