Are you also stuck among the limited career options that we hear day to day from everyone? Then you have fortunately landed on the perfect page to gather an insight about a high-paying course called Diploma in IFRS. We bet that most of you have not heard about it earlier. So, before we let you know about the perks of pursuing this course, we would love to give you a sneak peak about what is IFRS.
What Exactly Do We Mean When We Refer To IFRS?
IFRS stands for “International Financial Reporting Standards”, issued by International Accounting Standard Board (IASB). These are a set of accounting rules designed for the financial statements of public companies aiming to create consistency, transparency, and comparability in financial statements across the globe. In simpler terms, IFRS provides a common language, making financial Statements more understandable and comparable. Public Companies based in 167 jurisdictions, European Union’s 27 states use IFRS. Although, US has not fully accepted the IFRS; instead, they follow a different system, known as the Generally Accepted Accounting Principles (US GAAP).
“Comparing US GAAP and IFRS”
US GAAP is developed by Financial Accounting Standard Board (FASB) and is considered more rule based, focusing on specific guidance for various transactions while IFRS is principles-based, emphasizing the underlying economic substance of the transaction.
Considering that you all must be intrigued to go deeper into the conceptual difference between US GAAP and IFRS. Let us understand the same with the help of some examples:
- As we know that Companies prepare financial statements, under US GAAP a separate statement of comprehensive income is required, while IFRS allows for a combined statement of profit and loss and other comprehensive income.
- Now let’s consider a more complex example, you all have probably heard a term called research and development costs. These are the costs that companies spend on research and development for a new method, application, medical formulae etc., US GAAP allows capitalization of these costs while IFRS generally requires them to be expensed.
These were only some general examples that highlight the difference between US GAAP and IFRS, while there are more distinctions, for now we will keep this crisp so that we can set your attention on IFRS.
Why Do We See A Bright Future Of IFRS?
IFRS Adoption and Financial Reporting
IFRS sets a standard framework that maintains harmonization among the financial statements for various companies making them more comparable and understandable.
Currently, over 100 nations follow the IFRS in preparation of their financial statements and we anticipate these numbers to grow.
The IFRS Foundation actively promotes continued adoption of this Integrated Reporting Framework by Preparers.
Adoption of IFRS is mandatory for publicly listed companies in many countries, while some private companies voluntarily choose to adopt IFRS for consistency or to attract international investors.
Future of IFRS Compliance
The compliance of IFRS continues to evolve, and more countries may choose to adopt and align with IFRS standards. In some cases, users of financial statements such as investors, shareholders, and tax authorities require some companies to follow IFRS. Moreover, there are companies and industries that should mandatorily comply with the IFRS as non-compliance would lead to legal actions
Future Of IFRS Convergence And Its implication For The Accounting Profession
Given IFRS significance in the preparation and presentation of the financial statements, several companies are rapidly adopting it. They are keen on hiring people whose professional ground is more suited to understand the vast nature of IFRS.
These standards not only bring harmonization but rather challenge a company to change their lookout in the presentation and disclosure of certain transactions, in other words adopting IFRS offers benefits like comparability and transparency, it also requires addressing challenges related to implementation and adaptation. The accounting profession must stay informed, adapt to changes, to ensure accurate financial reporting.
It is thus evident that IFRS Convergence requires accounting professionals to dig deeper in these standards. The future that IFRS holds demands the need for a Diploma in IFRS.
IFRS – A Clear Yes!
IFRS is indeed in demand globally. Over 113 use IFRS for publicly traded companies and many other countries around the world are moving towards applying IFRS. It provides a common framework for financial reporting, making it easier to compare financial statements across different countries and industries and enhancing transparency.
In summary, the adoption of IFRS continues to grow, and its principles and requirements provide a solid basis for financial reporting worldwide. If you want a differentiating career in the field of Accounting, Auditing and Finance then understanding IFRS is a highly valuable career choice. Not only for the newcomers in these fields but also for the existing accounting, auditing, and Financing professionals
Is IFRS A Good Career?
Having listed down all the facts above, it makes it obvious that if you consider IFRS as a career option it will be amongst the most lucrative careers. One by One we will list down how IFRS plays a beneficial role in your career enhancement?
After completing a Diploma in IFRS, you can explore these exciting job profiles:
- Accounting and IFRS: IFRS and accounting are complementary to each other. Any company adopting IFRS requires their accounting professionals to have knowledge about IFRS. As companies expand globally the need for IFRS experts grows. Firms like Deloitte, KPMG, EY, PWC, Grant Thornton, and BDO actively seek professionals with IFRS knowledge.
- Auditing and IFRS: Auditing refers to examining the accuracy of the financial statements and a company’s financial reporting. So, when a company follows IFRS in preparation of its Financial Statements, how can an auditor audit those statements without having adequate knowledge of the IFRS? If you are also the one seeking your career in the field of auditing, then a Diploma in IFRS gives you an edge over others.
- Finance and IFRS: Companies, Shareholders, Investors, Government require professionals with IFRS expertise to cater their financial needs.
- Tech and IFRS: Financial Analyst and Data Analyst who are well equipped with the knowledge of IFRS are in demand by companies hiring professionals for analysing financial data and providing insights.
These roles above are not limited. The Diploma in IFRS is an excellent choice for Chartered Accountants (CAs), Finance and management graduates. Additionally, you can easily be placed for a job profile such as a Financial Controller, a professional who monitors internal operations, balance sheets, Income statements after completing your Diploma in IFRS. If tax advising intrigues you then a Diploma in IFRS is an excellent opportunity for speeding your growth in this field.
Salary Potential after Diploma in IFRS
There is a wonderful future in financial reporting with growing businesses and emerging startups, companies are bound to maintain financial records and here comes the role of adopting IFRS. Having said that, a Diploma in IFRS is emerging as the most demanding course. The average salary after completing a Diploma in IFRS can range from INR 6 to 8 lakhs per annum. In the field of auditing, it ranges from 8 to 12 lakh per annum once you complete your diploma in IFRS. Not only this, but as you gain experience and expertise, your earning potential increases.
We are certain that these amazing insights about the Diploma in IFRS and its high-paying salary would shape your mind to consider this course as a career option. We hope that the choices you make today turn out give a joyous and contended career.
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