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Accounting Standards — IFRS, Local GAAP and What Applies

Accounting standards are the rulebooks that decide how a company records transactions and prepares financial statements. Which set applies affects comparability, audits, and what investors expect.

What standards are

Standards define how revenue, assets, and liabilities are measured and presented, so that statements are consistent and can be reviewed by auditors and authorities.

IFRS vs local GAAP

Many countries use local generally accepted accounting principles for smaller companies and IFRS for listed or larger groups; some permit or require IFRS more broadly.

Founder relevance

The framework a company reports under affects audit scope, investor due diligence, and the work of consolidating a group — worth knowing before scaling.

FAQ

Do small companies have to use IFRS?
Usually not — many jurisdictions let smaller companies use local GAAP and reserve IFRS for listed or larger entities. It varies by country. This is informational only.
Why do accounting standards matter to investors?
They make financial statements comparable and reliable, which is central to due diligence and valuation when raising capital.

Related

Sources

  • OECD — OECD — economic and tax statistics (accessed ; reviewed )
    Covers: Comparable corporate tax, statutory rate, and economic indicators across member and partner economies.
    Does not cover: Effective tax rates, deductions and incentives, local surtaxes, and personal residency rules.
    Why it matters: Used as a cross-country baseline to sanity-check rates against primary tax-authority figures.
    Review cadence: Annual, plus on major statutory changes.
  • PricewaterhouseCoopers — PwC Worldwide Tax Summaries (accessed ; reviewed )
    Covers: Corporate income tax, VAT, and dividend withholding rates across most covered jurisdictions.
    Does not cover: Your specific effective rate, bespoke incentives, rulings, or transactions requiring professional advice.
    Why it matters: Used to triangulate rates against primary tax-authority sources, not as the sole authority.
    Review cadence: Updated by the publisher per tax year; re-checked each data review.
Informational only. This content is informational only and does not constitute tax, legal, accounting, or financial advice. Tax and compliance requirements can vary by jurisdiction, residency, business activity, ownership structure, and regulatory changes. See the methodology, disclaimer, terms, and sources.

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