How beneficial will be IFRS ( International Financial Reporting Standards ) Certification

The International Financial Reporting Standards (IFRS) Foundation’s role in governing global accounting rules is under threat after European politicians said they were questioning whether the authority was “best suited” to the position. IFRS are principles-based accounting standards and interpretations set out by the International Accounting Standards Board (IASB).

It is important to look at the big picture and the overarching aim of IFRS. In an increasingly global market place, international comparability is critical to enable the effective allocation of scarce resources. To achieve international comparability the key nations around the world need to commit to one global set of accounting standards.  

While over 100 countries have already adopted IFRS, key countries like the United States, Japan and India are yet to require IFRS.The finance and accounting profession is emerging as a fast growing profession. In this globalized era, national General Accepted Accounting Principles (GAAP) is becoming rare and IFRSs are gaining momentum across the world. These are accepted as a single accounting language for the preparation of financial statements. 

This universal recognition of IFRSs has established a common platform for this profession in the whole world and created a need for finance and accounting professionals to gain knowledge and experience on these standards. IFRS is particularly beneficial to large companies that have subsidiaries in different countries. Adopting a single set of global standards simplifies financial reporting, allowing management to use one reporting framework across the whole group. 

The worldwide acceptance of these international standards has created a potential demand for the IFRS professionals. The companies prefer to recruit those candidates who are having an expertise in these international standards apart from their normal specialization in finance and accounting. 

The importance of this profession becomes more relevant when there is a lack of experts in this area and one can also go for consultancy and advisory service to the companies which are in process of adoption of these standards.In this accounting era, there is a huge demand for IFRS professionals. The youngsters planning a career in finance and accounting may have a bright future by having a specialization in these standards.  

Assessing IFRS Adoption: In late 2012, the IFRS Foundation began working on a comprehensive pro- ject to assess progress toward the goal of global accounting standards, directed by this author. The project has three related objectives:

·         To develop a central source of information to chart jurisdictional progress toward global adoption of a single set of financial reporting standards

·         To respond to assertions that many national variations of IFRS exist around the world
·         To identify how the IFRS Foundation can help countries progress on their path to adoption of IFRS.

Eligibility:The persons who are already pursuing or passed courses like:

1. MBA with specialization in finance & accounting, Chartered Accountancy (CA)
2. Cost & Works Accountant
3. Company Secretary (CS)
4. Certified Financial Planner (CFP)
5. Chartered Financial Analyst (CFA)
6. Any other relevant course in the area of finance and accounting may further enhance their knowledge by doing specialized courses and training programmes in international standards and can become IFRS professionals. These professionals can exploit numerous opportunities coming in India as well as in other countries.

 Job Prospects & Career Options

 The role and responsibilities of IFRS professionals have created a number of employment avenues for these personals which are given below: 

·         The companies in India which are covered in the Ist phase require a large number of IFRS professionals for efficiently implementing these standards.

·         The audit firms are also having need of IFRS professionals as these firms support companies in successful implementation of international standards.

·         The professional advisory companies need the professionals who are well versed with these standards to provide excellent consultancy services to other firms in finance and accounting.

·         The banking industry in India which is most affected by the implementation of IFRSs also require these professionals as this industry will have to prepare its financial statements as per the new standards from April 1, 2013.

·         Likewise, Insurance industry is also moving towards the adoption of international standards in 2012, so, IFRS professionals will also have demand in this sector.

·         Self-employment is also a good option for IFRS professionals as they can start their own advisory and consultancy services.

·         The persons with expertise in international accounting standards will also have an edge over others in educational institutes which are running certificate diplomas and training programs in this area.

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