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IFRS- A big Question ????

prerna (auditor) (95 Points)

16 July 2010

hey alll.......actually one of ma has asked abt " IFRS".....as i don't knw much abt it......

she has d following query :-

1. actually wht is it actually ???

2. what is the scope and eligiblity for doing dis course....

3. She is in IPCC...its her 2nd attempt.....so she wnt 2 drop CA....n join IFRS.....so 4 her is dis a betr option..?????

so plz help her abt this case....ive seriously search on d net.....bt i found nthing....

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7 Replies

NUKUL GARG (Senior Associate Consultant) (1231 Points)
Replied 16 July 2010

NO NEED TO DROP CA

IFRS COURSE WILL SURELY HELP IN LATEST UPGRADATION,BUT ONLY DOING THIS IS NOT SUFFICIENT.SO CA-IPCE IS HELPFUL IN THIS REGARD.YOUR FRIEND CAN APPLY FOR ATC ALSO ie, JUST PASS FIRST GROUP AND GET A DEGREE OF ATC.

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Rahul Gupta (Project Controller ACA MBA(Fin.)) (8019 Points)
Replied 16 July 2010

Agree with Nukul. Don't drop CA. I know its hard to continue sometimes as you feel low or de-mptivated. But instead of seeing the faliure, see the life after you win over thses failures. Even if she do FRS cours etoday by Dropping CA, but after the value and teh degree of IFRS will increase manifold. SO do IFRS courses , no problems but also complete CA.

For IFRS information, see the IFRS section of the forum. You will get lots of information.

Also visit https://www.ifrs.org/Home.htm for more information. Abreif biew is that IFRS are the International accounting standards created by IASB. The main purpose for its implementation by all the countries is to bring unifomity in the princples of accounting among all the countries.

For IFRS courses read this article. > /articles/courses-ifrs-icaew-uk-ifrs-icai-india--6171.asp

Regards

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CA SURENDRA KUMAR RAKHECHA (Practising CA at Surat) (26263 Points)
Replied 16 July 2010

In initial days; the CAs were engaged in accounting when they use to start their practice except some who had approach at good companies. The one of the reason was also that auditing could engage a CA only for 3 months a year.

Then the profession moved towards Taxation.

Then it moved towards system analysis and data processing.

Then it further developed towards mergers, acquisition etc.

Now fortunately or unfortunately; they have come back to accounting i.e. reporting about accounting system !!

In IFRS; the basis thrust is on Valuation. For example; a figure shown in the balance sheet - Rs.50crores as debtors and really it can be realized only upto Rs.30 crores. If the amount is shown in the balance sheet since last two years for Rs. 20 crores from some debtors and they are also providing confirmation letters still there is big question towards its recovery.

Similar situations may be there about fixed assets. There may be fixed assets in the company but actually these may not be working due to new technology came in the market. Still these are retained in the business without selling them off. The Management don't sell off these specially in the circumstances where huge losses are booked in the accounts. It distorts the accounting profits of the year. This situation specially arise when the Management wishes to go either for IPO or Bank finance and they judge the company from its profits being shown.

IFRS will require that each and every year; the realizable value of assets should be taken in the Financial Statement although in Books the original amount .

So everyyear a good exercise of valuation would be there.

The reason of adopting IFRS is to get our accounting system at par with the world Financial Reporting. Since our companies are also acquiring foreign companies; hence there is a need for it.