Are you qualified as per International Financial Accounting Standards?

By Anisha Khilnani

International Financial Reporting Standards (IFRS) is a set of accounting standards, developed by the International Accounting Standards Board (IASB) that is becoming the global standard for the preparation of public company financial statements.

Why is the world looking at IFRS?

Convergence of accounting standards will have the effect of attracting investment through greater transparency and a lower cost of capital for potential investors. In recent times companies are finding it increasingly difficult to raise money and get them listed on stock exchanges as they were not following the standard in accordance with IFRS. Differences in accounting practice make it difficult for investors, whether individual or institutional, to compare the financial results of different companies and make investment decisions.

International Financial Reporting Standards remove some of the subjectivity from financial reporting and provide a consistent basis for recognition, measurement, presentation and disclosure of transactions and events in financial statements.

Today it is observed that many major economies in the world are on the way to adopt IFRS. Nearly 100 countries have adapted their local accounting standards to conform to IFRS. Many nations developed their own local Generally Accepted Accounting Principles (GAAP). The advent of IFRS has brought with it the choice of adopting a globally accepted set of standards instead of using local GAAP.

To whom it benefits

Multinational companies will find it easier to comply with reporting requirements of overseas stock exchanges since they would no longer have to re-state their accounts.

Governments will be in a better position to assess the tax liabilities of multinational companies receiving income from overseas as well as for foreign multinationals setting up shop in their own country.

Advantage of IFRS:

• IFRS are accepted as a financial reporting framework for companies seeking admission to almost all of the world's stock exchanges.

• The enhanced comparability of the companies' financial information and the improved quality of communication to their stockholders, decrease investor uncertainty, reduce risk, increases market efficiency and eventually minimizes the cost of capital.

• IFRS eliminates barriers to cross-border trading in securities, by ensuring that financial statements are more transparent.

• IFRS financial statements that are universally understood and comparable can both improve and initiate new relationships with customers and suppliers across national borders.

ACCA Diploma in International Financial Reporting (Dip IFR)

International Financial Reporting Standards (IFRS) are quickly increasing in importance globally. Over 90% of the world's leading economies either require IFRS or are converging with it. Very few companies can afford  to ignore the need to understand IFRS and its implications for their business and financial reporting. Consequently, demand for professionals with IFRS skills is increasing at an accelerating rate.

ACCA Diploma in International Financial Reporting (Dip IFR) is an international qualification in IFRS developed by the leading professional accounting organization, Association of Chartered Certified Accountants (ACCA). By obtaining this qualification, you will be raising your professional knowledge of IFRS to the next level.

This program is developed for reporting specialists, accountants and auditors who have skills of preparing, analyzing or auditing statutory or IFRS-based financial statements and wish to gain or improve their knowledge of IFRS reporting and become specialists accredited by the Association of Chartered Certified Accountants (ACCA).

Specialists certified under this program will acquire:

• in-depth understanding of key IFRS principles and rules;

• knowledge of IFRS requirements for recognition, measurement, presentation and disclosure of financial statement components;

• skills necessary for preparing financial statements under IFRS, including consolidated financial statements;

• Experience in developing professional judgment on practical application of IFRS.

How to Get Started?

Make sure you know what you’re getting into as a candidate in the program and what opportunities you’ll get out of it as a Member of the ACCA once you’ve completed the program.

2. Is this the program for you?

If you are planning to advance your career, this could be the right step.

* Review the program entrance requirements

* Find out about Practical Experience requirement

* Learn about the jobs that benefit from the experience that comes with the ACCA

3. Sign up

You’ve decided to enter the ACCA Program. Now what?

* Review the fees: Confirm that you’re ready to pay the one-time programmed registration fee.

* Learn more about scheduling: Find out how long it will take and when you should sign up

* Request an ACCA registration form or alternatively register on line

* Gather all necessary documents for registration

* Post them to the ACCA Office in Glasgow

Why study with FINPLAN Academy?

Finplan Academy brings to you vast experience of conducting successful trainings in IFRS. PwC instructors are experts in practical application of IFRS and IFRS training.  All instructors have ACCA qualification and international experience.

Value-add services offered by FINPLAN:

1. Cost-effective - Candidates not only gain specialist knowledge in finance and accounting, but also acquire valuable skills in organizational management and strategy. It therefore increases the career prospects of the employee and reduces the training costs of the employer.

2. Comprehensive - Comprehensively covers the technical and management skills accountants are expected to master. Refined for 2007, the ACCA Qualification will help achieve the range of competences required in a finance team. The ACCA syllabus is a comprehensive program in financial management skills.

The ACCA Qualification takes the candidate to advanced levels in a variety of subjects such as: Management Decision Making; Financial Reporting; Financial Strategies.

The ACCA Qualification is not just theory - the exams are practical case studies.

3. Effective in finding business solutions – Organisations benefit from having accountancy professionals who understand the financial needs of business and who can evaluate and present effective business solutions.

The qualification equips finance professionals with knowledge and skills which are diverse yet dynamic - the curriculum includes tax, audit and business law as well as the core accountancy subjects.

4. Measure of competence - The ACCA combines the benefits of traditional accounting skills with a wide ranging and forward looking syllabus, which recognizes that finance professionals are increasingly required to demonstrate strategic thinking, excellent communication skills, people skills and fluency with information technology.

5. Flexible - The ACCA Qualification has flexible entry requirements, and offers flexible study options, enabling studies to be planned around business needs.

6. Practical Experience - One of the requirements of the ACCA program is practical experience, because the ACCA realizes that employers require an increased focus on an individual’s workplace performance.

7. Based on International standards - The Qualification is based on international accounting and auditing standards and is IFAC compliant.

8. Truly Global - The ACCA is the only truly global accountancy qualification with members in 170 countries. A global program that tracks the needs of industry and employers.

9. Recognition worldwide – The ACCA has achieved strong recognition worldwide by building relationships with influential organisations including: local and multinational companies, accounting bodies, educational institutions, governments, entities such as the United Nations and the World Bank.

10. Professional status – Globally, employers and business partners understand and respect the qualification. ACCA members are in demand for their finance and accounting knowledge and skills worldwide.

The author is Director Operations, Finplan - Financial Planning and Management Institute