International Financial Reporting Standards (IFRS) is a set of accounting standards developed by an independent, not-for-profit organisation called the International Accounting Standards Board (IASB). A single standard which provides investors and auditors with a cohesive view of finances.International financial reporting standards (IFRS) is based around the syllabus of the The Association of Chartered Certified Accountants (ACCA).
So if you want to make a career in the field of Finance and Accounting, ACCA qualification gives you a license to work in any country in the field of Finance and Accounting as most of the countries are adapting IFRS.
There are two main reasons why most countries are adapting IFRS is because:
- As corporates are going multinational even faster than ever, so it is very important that they are able to prepare their financials with the same set of standards everywhere. This increase in comparability has helped investors better determine where should they invest.
- IFRS uses a principles-based, rather than rules-based, philosophy. A principles-based philosophy means that the goal of each standard is to arrive at a reasonable valuation and that there are many ways to get there. This gives companies the freedom to adapt IFRS to their particular situation, which leads to more easily read and useful statements.