What is IFRS: All About International Financial Reporting Standards

Updated on Jan 29, 2025 06:28 IST

Jaya SharmaAssistant Manager - Content

The full form of IFRS is International Financial Reporting Standards. These accounting standards are issued by both the IFRS Foundation and the International Accounting Standards Board (IASB). IFRS constitute a standardised way to describe a company's financial performance. Its aim is to ensure that the financial statements are understandable and comparable anywhere in the world. IFRS is relevant for companies that have publicly listed shares and securities. In the United States, GAAP is still followed.

What are IFRS?

International Financial Reporting Standards (IFRS) are the set of accounting rules used in the financial statements of public companies. By following IFRS, companies can prepare financial statements that are comparable, transparent and consistent.

List of IFRS Standards

The following IFRS standards are stated on the official website and are as mentioned below:

Q: What is IFRS and GAAP?

IFRS is the widely accepted set of accounting standards that are implemented in over 140 countries. GAAP is the generally accepted accounting principles that are accepted in the United States for financial reporting.

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Q: Is IAS 1 an IFRS standard?

From 1st January 2027, IFRS 18 will supersede IAS 1. This means that IAS 1 will no longer remain effective. For now, IAS 1 is not the same as IFRS.

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Table of contents

What are The Benefits of Learning IFRS Standards?
Who Can Learn IFRS Standards?
How To Become Certified in IFRS Standards?
Online Courses To Learn IFRS Standards in Detail
Popular IFRS Colleges in India
Popular Private IFRS Colleges in India
Popular IFRS Specializations

What are The Benefits of Learning IFRS Standards?

The below mentioned points tell the benefits of IFRS standards:

Finance professionals who know IFRS can work in foreign countries, as they're accepted and used in over 140 countries globally.
Those who have the knowledge of IFRS can compare and analyze financial statements from companies worldwide as these standards create a common finance language.
People who master IFRS standards often have a higher salaries and have access to more senior positions, mostly in multinational companies and international accounting firms where IFRS expertise is highly valued and increasingly necessary.

Q: Who should learn about IFRS?

Knowledge of IFRS is particularly valuable for investment analysts, accountants, and business consultants who need to evaluate companies across different jurisdictions.

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Who Can Learn IFRS Standards?

Anyone interested in building a career in the Accounting and Finance domains can learn International Financial Reporting Standards (IFRS). The following people are qualified :

Category	Who Should Learn
Educational Qualification	Graduates with a degree in MBA in Finance Commerce graduates in accounting roles Accounting and Finance students Business school graduates
Professional Accountants	Chartered Accountants (CAs) Cost and Management Accountants (ICWA/CMA) Company Secretaries Chief Financial Officers Finance Managers Financial Controllers Chief Accountants
Industry Practitioners	Internal Auditors External auditors and assurance providers Public Practice Accountants Corporate Finance Professionals Financial Analysts Financial Consultants
Experience-Based Learners	Professionals with 2+ years in finance/accounting Bookkeepers seeking career advancement Business owners Fintech professionals

Q: What is the format of balance sheet used in IFRS?

'Statement of Financial Position' is the balance sheet format used in IFRS. It first presents non-current assets which is followed by current assets, equity, non-current liabilities and at last, it presents current liabilities.

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How To Become Certified in IFRS Standards?

Those who want to become certified professionals with the knowledge of IFRS, need to get an FSA credential. By clearing this two-part credential, professionals will be able to integrate sustainability considerations into financial analysis. This will prepare you to lead on disclosure. By getting an FSA credential, a professional will be able to understand how sustainability and financial performance interlink. They will learn to navigate through the complexities of modern business.

1. The FSA Credential Level I exam

This is a 2-hour long exam that consists of 110 MCQs. The following table covers the syllabus of the exam:

Part	Sections	Topics
Part I: The Need for Sustainability Disclosure Standards	1. Demand for sustainability information	What is sustainability? Growing investor demand Demand within companies Other institutions driving demand
	2. The historical basis for disclosure	The aftermath of the stock market crash of 1929 Disclosure as the basis of regulatory reform The road to standardized accounting procedures
	3. Materiality: a guiding principle for required disclosure	A long-standing legacy of investor decision-making General characteristics of materiality Materiality changes over time
	4. The limitations of financial disclosure	Financial information beyond financial statements: the use of non-GAAP The changing nature of market value The scope of financial reporting expands New tools for investors
Part II: The Sustainability Information Ecosystem	5. Introduction to the sustainability information value chain and the role of data providers	Growth of the ecosystem: a maturing industry The role of data providers Sustainability data’s unique challenges
	6. The role of standards and frameworks: from fragmentation to cohesion in sustainability disclosure	The role of standard-setters Formative standards and frameworks Distinguishing characteristics of sustainability disclosure guidance Creating a coherent system for comprehensive reporting—simplification through consolidation
	7. Materiality: going beyond investors	Materiality applied to sustainability disclosure Materiality in the IFRS Sustainability Disclosure Standards Materiality in the GRI Standard Materiality in the European Sustainability Reporting Standards Process vs. outcomes
	8. Sustainability disclosure across jurisdictions	The relationship between standard-setters and regulators The growing prevalence of regulatory disclosure guidance Common types of sustainability reporting rules Types of guidance shaping global disclosure rules The influence of corporate governance codes Balancing flexible implementation with usable information
Part III: Understanding IFRS Sustainability Disclosure Standards	9. What is useful sustainability-related financial information?	The importance of standards Sustainability: a unique context The goals of the International Sustainability Standards Board Additional characteristics of the IFRS Sustainability Disclosure Standards The primary objective of the IFRS Sustainability Disclosure Standards Qualitative characteristics of useful sustainability-related financial information
	10. The IFRS Sustainability Disclosure Standards	Core content Conceptual foundations Determining what information to disclose
	11. Setting IFRS Sustainability Disclosure Standards	The structure of the IFRS Foundation Developing the first IFRS Sustainability Disclosure Standards Maintaining the SASB Standards The initial development of the TCFD Framework
	12. How companies disclose sustainability-related financial information	Introduction to sample disclosures Why do companies disclose investor-focused sustainability information Where do companies disclose investor-focused sustainability information? What investor-focused sustainability information are companies reporting? How is investor-focused sustainability information being disclosed?
Part IV: Corporate and Investor Use: Going Beyond Disclosure	13. A closer look: investor demand for sustainability information	A global call for enhanced disclosure A shift in market paradigms Companies come to call
	14. Considerations for corporate use	Business roles applicable to sustainability disclosure Preparing for disclosure Preparing quality data Reporting material sustainability data Managing sustainability performance
	15. Considerations for investor use	Overview of sustainability in investing A Spectrum of the use of sustainability information Investor application of cross-industry vs. industry-specific sustainability data The pre-investment stage Index construction and sector allocation Post-investment engagement Investor reporting Creating an effective framework Data is the backbone

2. FSA Credential Level II Exam

The level II FSA credential examination which is 2 hours long and consists of 55 MCQs related to 13 miniature case studies. Those who are sitting for the level II exam need to understand that the exam test the candidate's ability to analyse the sustainability performance of the company using quantitative and qualitative financial and sustainability data. The following table provides the complete syllabus of the exam:

Part	Topic
Part I: Identifying the Sustainability Issues Relevant to Financial Performance
How a Company’s Circumstances Influence Material Sustainability Issues	Considerations That Shape Each Industry’s Sustainability Profile The Influence of Governance and Management Practices Evaluating How a Company’s Circumstances Influence Material Sustainability Factors
Understanding Sustainability Issues	The Universe of Sustainability Issues Identifying Interrelated Impacts
Evaluating Sustainability Issues	Applying the Five Factors Contextualizing Sustainability Topics Making Use of the Findings
Part II: Evaluating the Comparability of Sustainability Information
Normalizing Data for More Effective Comparisons	When to Normalize ESG Data Selecting Appropriate Measures for Use in Normalization Normalizing for Comparative Analysis
Analyzing the Spread of Industry Performance	Getting to Know Your ESG Data Analyzing Data Distribution Outliers and Non-Normal Distributions Considering Data Quality
Considering Company-Specific Context	Considering a Company’s Operating Environment Management and Governance Decisions
Part III: The Connection Between Sustainability Performance and Valuation
Characterizing Financial Impact	Identifying Risks and Opportunities Assessing the Likelihood, Timing, and Magnitude of Impacts Process for Identifying Metric Types and Categories
Using Sustainability Data in Financial Valuation	Overview of Discounted Cash Flow Identifying Channels of Financial Impact
Integrating ESG Beyond DCF	Evaluating Returns and Profitability Scenario Analysis

Q: How many IFRS standards are there?

Currently, there are 17 IFRS standards in application. By 1st January 2027, IFRS 18 and 19 will also be in application.

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Online Courses To Learn IFRS Standards in Detail

The following online courses are relevant for those who want to learn about IFRS standards in detail:

Course	About the Course
IFRS - International Financial Reporting Standards	In this course, the set of accounting standards IFRS are discussed that govern how different types of transactions and events should be reported in the financial statements.
Certificate in IFRS	This course is suitable for finance professionals who want to understand the structure of the IFRS framework. Through this course, the students will learn to apply relevant financial reporting standards to important elements of financial reports. They will also learn to identify and apply disclosure requirement for companies in the financial reports.
Diploma in International Financial Reporting (DipIFR)	Professionals who have enrolled in this course will understand the conceptual framework of financial reporting and learn to apply them. They will also learn to prepare group financial statements including subsidiaries, associates and joint arrangements. Group cash flow statements are not included.

Popular IFRS Colleges in India

Following are the most popular IFRS Colleges in India. Learn more about these IFRS colleges (Courses, Reviews, Answers & more) by downloading the Brochure.

Jain Deemed-to-be University, BangaloreBangalore

Admission '26 Placement Cutoff

Accounting & Commerce Courses

27 Courses (200+ Seats)

Exams

JET GATE CEED UGC NET +2 more

Total Tuition Fees

₹2.5 L - 9 L

Median Salary

₹7.26 - 7.78 LPA

Course Rating

3.980