International Financial Reporting Standard (IFRS) are the standards which are principal based in nature. These are the standards, framework and the interpretation promulgated by International Accounting Standards Board (IASB), an international standard setting-body based in London. IFRS has a specific structure as it establishes rules and also gives guidelines on the various procedures to be followed for treatment. Started by IASC (International Accounting Standards Committee) for formulating the standards, IASC decided to dissolve itself in 2001 and form a professional board IASB. IASC trustees appoint members for IASB, IFRIC (International Financial Reporting Interpretations Committee) and SAC (Standards Advisory Council). IASB emphasizes on developing standards based on sound and clearly stated principles which requires interpretation.