What is the primary function of the International Financial Reporting Standards (IFRS)?

The primary function of the International Financial Reporting Standards (IFRS) is to standardize accounting principles globally. IFRS provides a comprehensive set of rules and guidelines that enhance transparency, comparability, and consistency in financial reporting across different countries. By promoting uniformity in how financial statements are prepared and presented, IFRS enables investors, regulators, and other stakeholders to make more informed decisions based on standardized information. This is crucial in a globalized economy where businesses operate across borders, as it reduces confusion and increases trust in financial reporting.

The other options focus on different aspects of financial operations. Regulating financial markets pertains to oversight functions by governing bodies rather than the development of accounting standards. Assessing tax liabilities is typically governed by national laws, while creating financial projections involves forecasting and planning rather than establishing standardized accounting methodologies. Thus, the primary role of IFRS distinctly aligns with standardizing accounting principles on an international level.