Before we begin on the whys and hows of IFRS, let’s learn and know some basics:
What is IFRS:
International Financial Reporting Standards (IFRS) is a set of accounting standards developed by the International Accounting Standards Board (IASB) that are becoming the global standard for the preparation of the financial statements of publicly listed companies. They provide a common global understanding and comparison of company accounts across international boundaries.
Advantages of converting to IFRS:
IFRS will give a common standard or platform to Indian companies at par with their International counterpart to present their financial statements with ease of comparisons. This will facilitate ease of comparisons and will also benefit companies who are planning to raise capital abroad
Disadvantages of converting to IFRS:
The belief that US GAAP is a far better Accounting standard than IFRS and many countries and organizations feel that the cost of IFRS adoption is much higher that its benefits.
Difference between IFRS and GAAP:
The key difference between the two is the detail / depth of each. While GAAP covers intricate details of revenue recognition, IFRS gives a broad overview of all the areas.
Also Read>>Career Opportunities in IFRS
Professionals who must arm themselves with an IFRS certification:
CPAs, financial statement preparers and auditors are some of the professional that increasingly and will need knowledge of IFRS. Others, such as actuaries and valuation experts who are engaged by management to assist in measuring certain assets and liabilities will have to be IFRS trained.
Now, that we are aware of the some of the basics for IFRS, let’s take a deeper look why is it important and how can we get certified to get a boost in our career.
There are a good too many discussions happening in the Indian media and industry circles around the adoption of IFRS ….Let us take a stock of what are the bare essentials that must not be missed…
Let’s read what Journals / Press Releases have to say…..!!
India has also planned the roll out and adoption of IFRS, as per EY article ‘India’s new accounting standards:
‘Ind-AS’ India’s commitment to convergence with International Financial Reporting Standards (“IFRS”) moved a step closer with the publication of 35 Indian IFRS standards Ind-AS by the Ministry for Corporate Affairs (MCA) in late February 2011. However, Ind-AS are different from IFRS in several important areas’.
“The notification of these IFRS converged standards fills up significant gaps that exist in the current accounting guidance, and India can now claim to have financial reporting standards that are contemporary and virtually at par with the leading global standards. This will in turn improve India’s place in global rankings on corporate governance and transparency in financial reporting.” As per the Press Release – Proposed New Roadmap for Implementation of Ind-AS converged with IFRS – (24-03-2014)
“The revised roadmap recommends Ind-AS to be implemented for the preparation of Consolidated Financial Statements of listed companies and unlisted companies having net worth in excess of Rupees 500 crores from the accounting year beginning on or after 1st April, 2016, with previous year comparatives in Ind-AS for the year 2015-16. The stand-alone financial statements will continue to be prepared as per the existing notified Accounting Standards which would be upgraded over a period of time.” As per the Press Release – Proposed New Roadmap for Implementation of Ind AS converged with IFRS – (24-03-2014).
Stay Ahead of the Game. Act Now….!
It is now evident that by 2016 IFRS or Ind-AS will become compulsory for most companies to implement, which therefore means that they would want to hire and retain Finance Professionals who are IFRS certified. So, it’s time for you to gain that cutting-edge and get ahead of the game by completing this certification.
These courses provide a deep understanding and knowledge of the nuances and intricacies of accounting. They give an insight on global reporting systems and standards therefore empowering businesses, finances and funds to a wide range of opportunities and better prospects.
It therefore makes sense to pick up this Internationally recognized and accepted course which will be of great importance for career advancement not only in India but in other countries as well.