IFRS or International Financial Reporting Standards are a set of accounting standards.

These
standards govern how different types of transactions should be reported in the financial
statements. International Accounting Standards Board (IASB) is the organization that develops
these standards. More than 100 countries, including countries in G20 and European Union,
practice IFRS. Using IFRS, companies can make their financial statement comparable with the
statements of other companies all over the world.
What is IFRS
IFRS stands for International Financial Reporting Standards, which is the international
accounting framework. It includes the common set of rules to make financial statements
consistent, transparent, and comparable around the world. IFRS are issued by the International
Accounting Standards Board (IASB), which is a recognized body that gives specifications to the
companies on how to maintain and report their accounts.
IFRS specifies the method to define types of transactions and other essential events related to
the financial aspects of a company. The major benefits of IFRS are that it gives confidence to
the investors belonging from the same or different countries for making informed decisions.
Why learn IFRS?
IFRS is an important accounting reporting standard that is adopted by more than 160 countries
in the world. There must be a uniformity in the financial information of every organization so
that they become comparable. It is mandatory for every accountant in different parts of the
world so that they can keep a tab on accounting activities as per globally accepted standards.
The aim is to provide a common global language for the companies to prepare and publish their
financial reports so that it is acceptable and recognisable across the world. Without any
international financial reporting standards, it would be difficult to compare financial accounts of
organisations from different countries from different parts of the world.
You would have, otherwise, had to find out the principles of accounting followed in those
countries, then find out the differences in the accounting standards. This leads to a tedious task
of comparing and adjusting. IFRS is a widely accepted international standard for accounting
principles, and thus, many Indian companies are adopting IFRS practices. This has opened up
multiple opportunities for finance professionals having IFRS certification and knowledge.
History of IFRS

The formation of IFRS was with the view that having common accounting standards ensure
consistency. International Accounting Standards Committee (IASC) was established in the year
1973 by the accountancy bodies active in ten countries. The organization published conceptual
framework known as International Accounting Standards (IAS).
In the year 2001, IASC was replaced by International Accounting Standards Board (IASB). The
aim behind developing these global accounting standards IFRS was to bring uniformity between
global accounting standards. IFRS began its journey from the European Union, and since its
popularity, it quickly reached all around the globe.
IFRS was originally called International Accounting Standards (IAS), which was issued
between 1973-2001 by IASC, which stands for International Accounting Standards Committee.
From April 2001, IASB took over IASC, and its new board agreed with existing IAS and
adopted Standing Interpretations Committee standards (SICs). In India, the convergence of
IFRS has amplified Indian Accounting Standards (IND - AS).
Features of IFRS
IFRS is a short term course offered by ACCA for a period of three months. The courses offers
knowledge and principles of essential international financial reporting system. The following
are the features of IFRS:
Uniformity: One of the biggest features of IFRS is bringing uniformity in the guidelines of
reporting. This helps organizations in comparing the financial statements across the world
without applying the accounting principles of other jursidictions.
Accuracy: It helps in bringing accuracy and consistency in the financial data that is reported.
This helps in making better decisions for the business.
Benefits new and small investors: As the financial standards are common, the reporting
standards are made simple and have better quality. This puts the new and small investors at par
with professional investors and is the financial standards are simple to be read by all, they do
not face the risk of professionals taking advantage.
Consistency: Due to the uniform structure of financial documents created using IFRS, such
documents are consistent in nature. This helps in the easire understanding of the document.
Commencement of lease term: The date from which lessee is entitled to exercise the right to
use leased asset. It refers to the date of initial recognition of lease
Resource management: As the accounting standards are streamlined through IFRS, companies
can manage their resources better. It can also lower the cost of auditing and statutory reporting.
Lowered cost of capital: As the financial reports are standardised through IFRS, businesses can
raise more capital from foreign markets at a lower rate as it creates a sense of confidence among
the investors. It is easy for investors to understand the financial reporting when it complies with
the international standards.

What are the advantages of adopting IFRS?

Apart from providing a common standard of reporting, there are numerous advantages of
adopting IFRS. Some of the prominent ones are mentioned below:

 Provides better comparability: When businesses are using a similar financial reporting
standard, it makes easier for investors to compare the financial statements more
accurately. It is highly helpful for investors to understand where to invest when they have
a clear picture of the financial comparisons of the organisations.
 Benefits new and small investors: As the financial standards are common, the reporting
standards are made simple and have better quality. This puts the new and small investors
at par with professional investors and is the financial standards are simple to be read by
all, they do not face the risk of professionals taking advantage.
 Manage resources better: As the accounting standards are streamlined through IFRS,
companies can manage their resources better. It can also lower the cost of auditing and
statutory reporting.
 Lowers the cost of capital: As the financial reports are standardised through IFRS,
businesses can raise more capital from foreign markets at a lower rate as it creates a sense
of confidence among the investors. It is easy for investors to understand the financial
reporting when it complies with the international standards.
Why should you take an IFRS certification?

Having a certification always has its advantages and if you are looking to start a career as a
finance manager, an IFRS certification can really help you. Following are some of the reasons
why you should get an IFRS certification:

 There is a lack of skilled accounting professionals who are well-versed with international
standards in the industry. Getting certified and having the skills will place you in a great
position to get opportunities to work with some of the top organisations.
 As the implementation of IFRS has already started in India, the demand for people who
are skilled in it is going to skyrocket in the next few years. You can get attractive salary
packages if you have a certification in IFRS.
 There is a demand for IFRS professionals across the financial and banking industry. They
need skilled professionals who can implement IFRS in their financial reporting. With a
certification, you can improve your chances of a promotion or getting a better position.
 As an IFRS expert, you can also start a successful career in the financial education
industry. You can join as a subject matter expert in institutions offering training in IFRS
and this is a lucrative industry.

What should you learn as a part of IFRS?

It is important to learn the basic structure of IFRS for which you will need to learn the
following:

Accounting principles: These are the set of rules and guidelines that are adopted by
organizations to prepare comparable financial statements. The principles of accounting present
accurate and precise information.
Financial statements: It is important to learn about different financial statements such as
balance sheet, income statement, profit and loss statement and cash flow statement.
IFRS structure: The IFRS standard is divided into International Financial Reporting Standards
(IFRS), International Accounting Standards (IAS), IFRS Interpretations Committee (IFRIC) and
Standing Interpretations Committee (SIC).

Why should you take an IFRS certification?

Having an IFRS certification is advantageos if you want to start a career as a finance manager.
The following are some of the reasons that are convincing enough to get an IFRS certification:

Skilled accounting professionals who are well-versed with international standards in the
industry can get IFRS certification. With the implementation of IFRS in more countries, demand
for skilled professionals is increasing.

Banking and finance industry is also seeking the assistance of IFRS certified professionals to
implement IFRS in their financial reporting. With an IFRS certification, you can help people
gain financial education.

Important Terminologies
The following are the important terminologies that are used in IFRS:

Reporting standards: These are the reporting standards that provide principles to prepare
financial reports and determine information required by the users of financial statements.
Accrual accounting: It is an accounting method where revenue and expenses are recorded
whenever a transaction occurs. This method of accounting is based on the matching principle
according to which revenues and expenses are recognized in the same time period.
Amortised cost: It is a cost at which financial asset and liabilities are measured at initial
recognition after subracting principal repayment. The cumulative amoritization using effective
interest method of any difference between initial and maturity amount after removing for
uncollectibility or for impairment.
Carrying amount: The amount at which an asset will be recognized after deducting
accumulated amoritization (depreciation) and impairment losses.
Borrowing costs: The interest and any other cost incurred by an entity in connection with
borrowing funds.
Who should enrol in IFRS course?
 The following skills are required to learn IFRS:
 Knowledge of financial reporting and accounting
 Those who have either two years of relevant experience in the domain of finance and
accounting
 Two years of accounting experience
 ACCA certification in international financial reporting
 Qualified chartered accountants or audit professionals
 Excellent skills in accounting
 Good knowledge of Mathematics
 Analytical and decision-making skills

IFRS Course Eligibility

Through IFRS course, you will learn about international financial accounting and reporting
skills that are required for a better business environment. To learn the core topics of IFRS, you
can enrol into courses that will help you learn about the accounting standards.

What are the popular IFRS certifications?

E&Y Manipal University Advanced Certificate in IFRS on Manipal ProLearn
IFRS certification by KPMG
Accounting Course Bundle (39 Courses, includes IFRS & US GAAP) on Wall Street Mojo
Interpreting Non-GAAP Reports on Wall Street Prep
IFRS - International Financial Reporting Standards on IACT

People who learn IFRS Courses are also interested in taking up courses & certifications like:

Accounting Courses
Cost Accounting Courses
GST and Taxation Courses
ACCA Courses
Audit Courses
Finance Courses
DOC LAI SACH KE TOAN DE THEM Y