Hi IFS=' '
is for space, but what is
IFS='
'
It means you are specifying the IFS
to use newline for splitting. This would be similar to doing:
IFS=$'\n'
The difference being is that your way is POSIX compliant.
My sources for this answer are here and here
You may find that the different methods are preferred depending on which shell implementation you are using (I think that's the right term?)
NOTE: My answer is based purely on the last 10 minutes of research, I have no prior experience or knowledge with this.