Know about IFRS/ Ind AS



In the world of globalization, when the quantity of multinational corporations are ever expanding, standardization is a need, not a decision. Financial reporting is a fundamental part of business and requires standardization. IFRS focuses on precisely that by keeping up stability and transparency in the financial world.

What is IFRS? What exactly IFRS stands for?

International Financial Reporting Standards are Global unified reporting/ accounting standards that are used in preparing financial statements of a company viz, like account book, profit & loss account and cash flow statements. All the companies which are located in different countries use accounting standards of respective countries for preparing financial statements.

Which standards were we using till now without IFRS?

 In India, we were using Indian GAAP/ Accounting Standards notified by the Government (MCA). There was no uniformity in the basis of preparing financial statements of the companies in different countries, making it difficult to have a comparison and eventually do business internationally.

 IFRS resolved this issue.

 India decided to adopt Ind AS which was based on IFRS as promised to G-20 nations in order to have a common accounting language. Thus, Ind AS is based on IFRS and there is approximately a 5% deviation from IFRS. So if you know IFRS, you know 95% of Ind AS.


 

Why do we need to learn IFRS / Ind AS?

 With recent developments, the entire world is accepting IFRS as a common reporting standard so that financial statements prepared using IFRS can be interpreted in any country by anyone. Thus, any professional working in the accounts and finance department or accounting KPO must have the knowledge of IFRS / Ind AS.

 World's job market opens up with knowledge on IFRS / Ind AS.

As per the conversion road map for Indian Companies, all listed companies and companies in the process of listing are required to adopt Ind AS. Private companies are required to adopt Ind AS if the net worth is INR 250 crores or more. There are about 7.4 thousand companies listed on NSE and BSE. All of these companies including their subsidiaries, parents, associates and JVs are required to comply with Ind AS. Assuming each company has 3 group companies, there are approximately 30,000 companies that require IFRS / Ind AS skill sets today. This does not include private limited companies.

Who needs to learn IFRS/Ind AS?

All KPOs which provide accounting back-office services to their clients outside India, also require a skill set having knowledge in IFRS. Apart from the companies, professional firms providing audit and other services are also in need of resources having adequate knowledge of IFRS / Ind AS.

What could be the job opportunities after qualifying with a Diploma in IFRS?

Globally, more than 140 jurisdictions, including countries across all continents have allowed the use of IFRS in their respective countries. Foreign Private Issuers in the USA are also allowed to present their financial statements under IFRS instead of US GAAP. 87% out of 166 jurisdictions have required or allowed the use of IFRS in their countries.

"Consequently, information on these worldwide accounting standards will open up global freedoms for the candidates."

 Learn IFRS with FinPro and open the door to new global opportunities. Finpro provides complete knowledge of International Financial Reporting Standards with IFRS certification course in Pune. We also provide IFRS pendrive classes and Indian GAAP course in Pune. Enroll yourself now and explore the field with the best of the best!

 

Location: Karve Rd, Pune, Maharashtra, India

Comments

Post a Comment

Popular posts from this blog

Accounting for compound financial instruments under the Ind AS – Part I

Image
A. Background: In recent times, many companies have chosen to raise money by issuing convertible instruments. A convertible instrument is a hybrid instrument that offers investors the option to  redeem the security for cash  at the end of (or during) its term  or convert it to equity shares  of the entity. Convertible instruments generally offer lower interest rates (because of the additional consideration by way of conversion option) than comparable conventional instruments, making them a cost-effective way for the entity to raise money. Convertible instruments are typically issued by companies that have high growth expectations and relatively lower credit ratings. The companies get access to money for expansion at a lower cost than they would have to pay for conventional instruments. Investors, in turn, get the flexibility of turning their convertible instruments into cash or equity shares of the entity. Examples of convertible instruments are optionally convertible preference shares
Read more

how to prepare for dipifr examination and clear iti n first attempt

Image
  Thousands of accounting, audit and finance professionals apply for diploma in IFRS every year, and the biggest intimidation that a majority of them face is the preparation of  DipIFR examination  to crack it in the very first attempt. While lack of time for preparation and inability to focus on studies at a stretch are generally behind this pre-examination stress, the right guidance may help them determine their course of preparation and experience a surprising outcome. DipIFR students typically come up with questions like how much time does it take to complete DipIFR syllabus before the examination, is it possible for non-CA professionals to get well versed with IFRS (International Financial Reporting Standards) within such a short time span and how many hours should be dedicated to  DipIFR study on a daily basis . Aspirants are often concerned about the magnitude and complexity of syllabus. Despite being professionals in the field of accounting, finance and audit, most of these stu
Read more

Finpro GAAP Knowledge Quest

Image
  Impact on accounting for financial instruments due to Interest Rate Benchmark Reform (IRBR) Overview By the end of year 2021, some major interbank offer rates such as LIBOR, EURIBOR, TIBOR will cease to be published and will be replaced by new interest rate benchmarks. This poses challenges for accounting of broad range of financial products and contracts which use these interbank offer rates as benchmarks. To address these challenges amendments have been made by IASB to the relevant IFRS’ and in India, corresponding changes have been made to Ind AS’. The amendments are issued to provide guidance on accounting of financial instruments during the phase of transitioning to new benchmarks (pre replacement phase) and after the replacement of existing interbank offer rates with new rates (replacement phase). This document aims to summaries the amendments and explain their practical applicability by way of an example. What is Interest Rate Benchmark Reform? Interest rate benchmarks (IRBs)
Read more