What is a key benefit of having a single standards system like IFRS?

A key benefit of having a single standards system like IFRS (International Financial Reporting Standards) is that it provides a cohesive view of finances for investors and auditors. This standardization allows financial statements from companies across different regions and industries to be understood and compared more easily. When all companies adhere to the same set of accounting principles, it reduces ambiguity and enhances transparency, enabling investors to make informed decisions based on consistent financial information.

Furthermore, for auditors, following a single set of standards simplifies the audit process, as they can rely on the same frameworks when evaluating financial statements, regardless of the organization's location. This uniformity fosters greater trust among stakeholders in the financial information presented, ultimately facilitating international investment and economic cooperation.

The other options do not reflect the true benefits of a single standards system:

• The notion that it guarantees profits for all companies is incorrect, as IFRS does not influence profitability; it only guides how to report financial results.

• The claim that it eliminates the need for financial audits is misleading because audits remain crucial for validating compliance with the standards.

• Tax fairness across countries is a complex subject that involves multiple factors, and while IFRS can aid in financial reporting, it does not directly address tax equity.