Understanding The IFRS Exam Pattern

Ever wondered how the IFRS exam pattern works and what it takes to crack it? Well, you may be gearing up to take on the international financial reporting world. So first understanding how the exam structure works is your ticket to success.

Whether you are aspiring for a DipIFR or seeking a lift through the Cert IFR, knowing the ins and outs of the exam can give you that extra edge. Well, let’s break down that pattern to help you feel more comfortable walking into the exam room.

What is DipIFRS?

What is DipIFRS? The DipIFRS is intended for financial professionals with some experience in financial reporting and a desire to enhance their understanding of the International Financial Reporting Standards. It is perfect for individuals looking to advance in their careers through a deeper knowledge of IFRS and its practical application methods.

The successful completion of the DipIFRS course enables candidates to apply standards on IFRS while preparing and presenting financial statements. The candidates acquire an imperative skill in accounting that involves complex issues. Candidates would also be adequately equipped to deal with the process of financial reporting for organizations whose financial statements need to be presented in conformity with IFRS.

What are the IFRS Eligibility Criteria?

To be eligible to take the DipIFR qualification you have to satisfy one or more of the following:

Professional Accountant or Auditor:

• You should be a professional accountant or an auditor and be in practice or business.
• You should be a member of an IFAC membership body

Alternate Qualifications: 

• Minimum of two years relevant experience in accounting and a relevant degree to at least ACCA exemptions for the Applied Knowledge and Corporate and Business Law (LW) exams.
• At least two years of relevant accounting/finance experience and an ACCA Certificate in International Financial Reporting.
• Three years of relevant accounting work experience.
• ACCA affiliate status.

What is the IFRS Exam Syllabus?

Diploma in International Financial Reporting is directed towards finance professionals and provides a sound knowledge of International Financial Reporting Standards. Following is the breakdown of the main areas covered by the syllabus:

International Sources of Authority

This subject allows you to understand the role and authority of the IASB, which is the body that has developed the IFRS and promoted it globally. In addition, this covers the major regulatory framework for the preparation and publication of financial reports that enable you to appreciate the wider context within which the IFRSs are applied.

Elements of Financial Statements

This category deals with the components that are generally included in a financial statement. Each of the items is explained in detail with the application of specific IFRS standards related to different assets, liabilities, and financial transactions. Those include:

Revenue Recognition: To ascertain when and how revenue is booked by the company in their books.

Property, Plant, and Equipment: It deals with the accounting treatment to be accorded to the fixed tangible assets of the organization and its corresponding depreciation.

Impairment of Assets: Ascertaining and accounting for impairment of recoverable amount of assets.

Leases: Presentation and measurement of lease transactions on the financial statements. 

Intangible Assets and Goodwill: Presentation of non-physical assets, accounting for goodwill valuation, and amortization. 

Inventories: Inventory control and accounting, cost determination, and its valuation.

Financial Instruments: Complex financial assets and liabilities, their valuation, classification, and disclosure. 

Provisions, Contingent Assets, and Liabilities: Accounting for unsettled Liabilities or probable assets. 

Employment and post-employment Benefits: Presentation of employee benefits-pensions and other post-retirement benefits.

Taxes in Financial Statements: Financial statement accounting of current and deferred tax.

Changes in Foreign Currency Exchange Rates: Effects of changes in foreign currency exchange rates on financial reporting. 

Agriculture: Accounting for agriculture- biological assets measurement. 

Share-Based Payment: Share-based payment accounting – including grants of employee stock options.

Exploration and Evaluation Expenditure: Accounting treatment of expenditure related to exploration and evaluation of mineral resources.

Fair Value Measurement: Understand the concept of fair value and how fair value is measured and disclosed in financial statements.

Presentation of Financial Statements and Additional Disclosures

This section covers the layout and detailed disclosures that are required in the financial statements themselves:

Presentation of the Statement of Financial Position, Statement of Profit or Loss, Other Comprehensive Income, and Statement of Changes in Equity: Learn about the structure and presentation requirements for these primary financial statements.

Accounting Policies, Accounting Estimates, Changes in Accounting Estimates, and Errors: This relates to the application of accounting policies, including changes therein and corrections of errors.

Related Party Disclosures: Requirements related to disclosures about transactions between related parties.

Operating Segments: Financial reporting by segments of a business, mainly applicable to diversified companies.

Reporting Requirements for Small and Medium-Sized Entities: Adaptation of reporting standards to meet the specific needs of SMEs, usually different from those of larger organizations.

Preparation of External Financial Reports for Combined Entities, Associates, and Joint Arrangements

This section addresses some complex group accounting areas, including:

Group Consolidated External Reports Preparation: This covers the actual consolidation of financial statements in respect of a group of companies.

Business Combinations – Intra-Group Adjustments: This addresses financial adjustments arising from transactions within a group of companies.

Business Combination-Fair Value Adjustments: This involves the fair value adjustments in the case of business combinations for the proper realization of assets and liabilities.

Business Combinations-Associates and Joint Arrangements: The accounting related to investments in associates and joint ventures.

Full Disposal of Shares in Subsidiaries: Accounting and reporting requirements on full disposal of subsidiary companies.

The syllabus will enable you to understand and then apply IFRS comprehensively, enabling you to produce financial statements that are accurate and present compliance with international standards.

What are IFRS Subjects to Study?

The IFRS question paper is divided into:

What is the IFRS Exam Pattern?

IFRS DipIFR qualification examination is a challenging assessment designed to test your proficiency in applying and knowledge of International Financial Reporting Standards. It is a computer-based test, and it takes 3 hours and 15 minutes to complete. It also consists of four subjective format questions that test your competence in applying the IFRS in realistic actual cases. This kind of broad approach will let the candidates be competent in the required elements of IFRS for professional international reporting.

IFRS Study Materials

To get the best results from your IFRS exam, you must have some quality study materials to prepare, according to the syllabus. The ideal comprehensive package would include not only textbooks, online courses, and video lectures but also practice question banks. These study materials should clearly explain all the important points of the IFRS standards, together with the most recent amendments. Mock exams and case studies will help you test your knowledge.

Effective Tips for IFRS Exam Preparation

Mastering IFRS could be a daunting task, but it can be done. With the right approach, it can turn complexity into clarity. Here are some of the key tips that you will need to help navigate you through IFRS for you to ace your exam with confidence. 

Understand Core Concepts: It is important to know the core concepts of accounting and financial reporting before going into any advanced IFRS standards. This provides the firm base that would help you crack those advanced topics with so much ease.

Attend to Good Study Material: Use updated textbooks, an online course, and practice questions specific to IFRS. Your books or study materials need to be updated for you to be up-to-date with all the changing standards.

Plan a Study Schedule: Make a structured study plan with objectives that have a time frame and also study regularly. Divide the syllabus into smaller parts and move accordingly with regular tracking of performance.

Comprehension: Understand the reasoning of standards rather than simply memorizing standards. Search for practical examples of how a standard would be applied under IFRS.

Practice regularly: Appear for mock examinations and exercise problems to determine the areas for which more time should be devoted to studying. Regular practice will also enhance your confidence level and thereby have a positive effect on your performance in the exam itself.

Prepare for IFRS with Zell Education

Zell Education proves to be an excellent platform for IFRS preparation. They offer a Diploma in International Financial Reporting. Their systematic and well-structured approach helps you master the syllabus of IFRS. With expert faculty, interactive learning modules, and ample study material, Zell Education will equip you with all the tools required to sail through the IFRS exams. Zell Education acts as your support system involving personal mentoring, mock exams, and much more. 

Conclusion

Gaining a career in financial reporting can lead you to be a Financial Analyst, Auditor, Consultant, or Finance Manager. Prepare well, know about the pattern of the exam, and you will go off as a hot finance specialist in demand. Concentrate, study wisely, and let this IFRS certification take your career to greater heights!

FAQs on IFRS Exam Pattern

How do I study for the IFRS examination?

Creating your study plans, gathering quality study materials, and practicing with past papers help in understanding it better.

What is the passing mark for the IFRS exam?

You need to score at least 50% to pass the IFRS exam.

Is IFRS tough or easy?

IFRS can be tough based on the standard of complexity. However, the right preparation along with quality study material can make it achievable.

What is the exam duration of IFRS?

DipIFR consists of a 3-hour 15-minute computer-based test, and Cert IFR consists of a 1-hour multiple choice.

How many exams are there in IFRS?

There is only one exam in the DipIFR.

Anant Bengani, brings expertise as a Chartered Accountant and a leading figure in finance and accounting education. He’s dedicated to empowering learners with the finest financial knowledge and skills.