Final answer:
International Financial Reporting Standards (IFRS) are accounting standards for financial reporting that promote consistency and transparency across international boundaries, developed by the IASB. They influence GDP reporting, are considered by international financial institutions, and affect practices related to international liquidity and the flow of funds.
Step-by-step explanation:
The term International Financial Reporting Standards (IFRS) encompasses a set of accounting standards that provide guidance on how companies should prepare and disclose their financial statements. These standards aim to bring consistency and transparency to financial reporting, making it easier for investors and other stakeholders to compare financial information across international boundaries. IFRS is used by many countries around the world and is developed and maintained by the International Accounting Standards Board (IASB).
Compliance with IFRS affects various aspects of financial reporting, including the reportage of gross domestic product (GDP) which is the sum of everything produced in a country in a given period. International financial institutions, such as the International Monetary Fund (IMF), play a role in promoting financial and monetary stability, which indirectly affects IFRS practices. Additionally, issues related to international liquidity, including the flow of funds and international accounts, are influenced by the standards set forth in IFRS.