Scope of IFRS and Objective, Growth and Skilling in IFRS

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Scope of IFRS and Objective, Growth and Skilling in IFRS

What is the Scope of IFRS?

As per the survey by IASB, more than 140 countries mandate or allows the use of IFRS for the financial reporting purpose of their publicly accountable entities. This includes the European Union, many countries in Asia and Latin America, and Canada etc. In U.S.A., they use US GAAP (Generally Accepted Accounting Principles) for financial reporting purposes of the publicly listed entities. However, U.S. allows foreign private issuers to present their financial statements using IFRS for reporting purposes.

 

Objectives of IFRS: Why They Matter

The purpose of IFRS is to bring harmony in the accounting language and bring ease in doing business internationally by standardising financial reporting across the globe. Accordingly, making it easier for investors, regulators, and other stakeholders through the financial statements which are reliable, transparent and comparable even from different organizations from various countries.

India made a commitment to G20 nations in their summit in 2009 towards convergence to IFRS. Accordingly, India decided to adopt a reporting framework similar to IFRS i.e., Ind AS, Indian Accounting Standards Converged with IFRS (conversion approach). Ind AS to be adopted in a phased manner from the financial year 2016-17 with comparatives for the year financial year 2015-16 for certain class of companies. Currently all publicly listed companies (including NBFCs) and companies in the process of listing along with their subsidiaries, JV and associates are covered within the ambit of Ind AS. Further, private limited companies with net worth of 250 crores or more along with their subsidiaries, JVs and associates are also required to comply with Ind AS.

 

Growth Opportunities in IFRS for Professionals

As many countries allow the use of IFRS for financial reporting purpose, private companies can choose to use IFRS in many jurisdictions. Small companies may also use IFRS depending on the jurisdictional requirements. Some countries may have separate guidelines or simplified standards for smaller entities, such as IFRS for SMEs (Small and Medium-sized Entities) as issued by IASB.

Knowledge of IFRS for a professional working in accounts and finance department is must in today’s world. Professionals with expertise in IFRS can become a global accountant. Such a professional can pursue a variety of career paths for skilling and training in IFRS including:

·       
FMany multinational companies, auditing firms, and financial institutions today prefer an accounting professional with IFRS knowledge or experience.

As more companies are adopting IFRS standards which is increasing the demand for trained professionals, in many areas, including accounting, auditing, consulting, and advisory services. Over 140 countries have adopted IFRS, which means there are more job opportunities worldwide for those who are certified. Also, the transition to IFRS is complex and time-consuming, so companies need highly skilled professionals to help with implementation.

To protect their financial health and reputation, companies need solid risk management. Being IFRS-compliant helps with this, making financial reports clear and accurate­. This lets companies spot and deal with risks early. Professionals with an IFRS Diploma have skills for dealing with financial risks effectively and help make good decisions for businesses to grow sustainably.

ACCA’s Diploma in International Financial Reporting (DipIFR) provides qualified accountants or graduates who have relevant country specific qualifications or work experience with an up to date and relevant conversion course. The Diploma provides practical and detailed knowledge of the key international financial reporting standards and how they are interpreted and applied.

 

Salary and Growth:

This is merely an indicative range, and actual salaries may differ depending on the skillset of a candidate.

Professional salaries increase up to 20-30% at major corporations based on the IFRS certification. Predicted growth is at an annual rate of 10%. The IFRS skills contribute to more career development in relation to business convenience in aligning with globalised norms.

 

Future of IFRS and Career Pathways

ACCA Diploma in IFRS is not just a qualification; it is a passport to a challenging but rewarding career with high growth potential and a Diploma in IFRS salary in India is also impressive. Moreover, with FinPro Consulting by your side, the road to international financial reporting is going to be very rewarding..

So, if you are still wondering what qualifies one for the ACCA Diploma in IFRS, then do not hesitate to

reach out to us at 84214 38047 / 83291 19908 for Free Guidance and details

Your total investment in learning IFRS is less than the cost of your smart phone, which is depreciable, however, knowledge will remain with you for life long!!

Thank you for reading the article and stay tuned to our next blog!

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