Over 113 countries require or permit the use of International Financial Reporting Standards (IFRS) for publicly-traded companies. Many other countries around the world are moving towards applying IFRS. Now we are going to talk about the benefits of IFRS
BENEFITS OF IFRS
Applying national accounting standards meant amounts reported in financial statements might be calculated on a different basis.
One of the basic disadvantages of this approach is that if a company recognizes profits under one set of national accounting standards, it may recognize losses under another.
IFRS Standards address this challenge by providing a high-quality, internationally recognized set of accounting standards that bring transparency, accountability, and efficiency to financial markets around the world.
- Transparency – The IFRS Standards enhance the international comparability and quality of financial information, enabling investors and other market participants to make informed economic decisions.
- Accountability – The IFRS Standards strengthen accountability by reducing the information gap between the providers of capital and the people to whom they have entrusted their money.
The Standards provide information that is needed to hold management to account. As a source of globally comparable information, IFRS Standards are also of vital importance to regulators around the world.
- Efficiency – IFRS Standards contribute to economic efficiency by helping investors to identify opportunities and risks across the world, thus improving capital allocation.
For businesses, the use of a single trusted accounting language lowers the cost of capital and reduces international reporting costs.
ACCA CERTIFICATE IN IFRS
ACCA’s Certificate in International Financial Reporting Standards (CertIFR) offers a broad introduction to the field and aims to help you understand how they are used globally.
The course and assessment are separate so if you are already applying IFRS at work and want formal recognition of your skills, you can apply to take the online assessment only.
But if you just want extra knowledge in the field you can choose to take the course only, or you can complete both. This course is more macro in nature and may not provide a detailed perspective especially the application of standards.
ACCA DIPLOMA IN IFRS
ACCA’s Diploma in International Financial Reporting (DipIFR) is for finance professionals who need to acquire more a detailed understanding of IFRS.
DipIFR is a fast and efficient solution that will develop your current knowledge in this field. As well as how to apply the standards, you will learn the concepts and principles which underpin them. There is a due emphasis on the application of IFRS helping students with detailed perspectives about standards. Which qualification you choose depends on your current knowledge, and experience, what is your need, and what are you exactly aspiring for.
BENEFITS FOR CA PROFESSIONALS
CA’s can use this course to develop knowledge and understanding of International Financial Reporting Standards. They will also learn how to apply them, as well as the concepts and principles which underpin them.
With CA in your arsenal, Cert/Dipl in IFRS offers an additional qualification in accounting and can add value to your career as it can also increase your employability.
This is because the IFRS Standards are becoming more and more globally accepted as several countries are considering moving towards applying IFRS. Therefore, several companies especially MNCs will demand professionals who have the knowledge to apply IFRS Standards to prepare or audit their financial statements.
Another advantage for CAs to do Cert/DipIFR would be that having the knowledge of applying IFRS Standards can enable them to broaden their client base and can enable them to provide professional services beyond their home jurisdiction.
CA professionals who do Cert/DipIFR enjoy the benefit of career growth as well as an increased level of compensation.
Moreover, doing a Cert/DipIFR course would be more time-efficient for a CA professional when compared to qualifying the full-fledged ACCA Qualification. There is just one exam of IFRS which one needs to clear and to get a Diploma in IFRS from ACCA. Check the link https://fintram.com/dip-ifr/ to understand the eligibility requirements and various other details for the same.
Considering the CA students are well versed with Ind As (Indian Accounting Standards) which has various similarities with IFRS. It makes it all the more easier for them to pursue and clear this exam. With this Diploma, various opportunities especially in the MNCs are available to Indian Cas which they can explore and take benefit from.
To end, Dip IFR is a perfect Segway for all CA students and Qualified Chartered Accountants to get into the world of International Financial Reporting standards to explore the world of opportunities and also to help them have a special edge in their current organization to help them grow faster.