International Financial Reporting Standards, usually called IFRS, are standards issued by the IFRS Foundation and the International Accounting Standards Board (IASB) to provide a common global language for business affairs so that company accounts are understandable and comparable across international boundaries. They are a consequence of growing international shareholding and trade and are particularly important for companies that have dealings in several countries. They are progressively replacing the many different national accounting standards. They are the rules to be followed by accountants to maintain books of accounts which are comparable, understandable, reliable and relevant as per the users internal or external. The IFRS financial statements are the end-product reports of accounting. The preparation of the financial statements is the summarizing phase of accounting. A complete set of financial statements is made up of five components: an Income Statement, a Statement of Changes in Equity, a Balance Sheet, a Statement of Cash Flows and Notes to Financial Statements. In recent years, it has become a SARS requirement that companies that meet certain parameters, need to have a compiled, reviewed or audited set of IFRS financials. Which one, depends on a scoring system set out by them.