IFRS stands for International Financial Reporting Standards. It was created and is being maintained by the International Accounting Standards Board (IASB), which consists of a globally distributed mix of accounting experts.
At its core, IFRS is a collection of principles on how companies must collect and report financial data. By standardizing how financial information is gathered and presented, IFRS makes it easy to interpret financial statements and compare organizations based on their financial reports.
IFRS certification and IFRS diploma are credentials that denote IFRS knowledge. You need them if you’re in an accounting or accounting-related role, especially one that puts you in charge of collecting financial information, preparing financial statements, and analyzing financial reports.
An IFRS certificate or diploma can also enhance your career if you design systems and processes related to how financial data is collected, reported, and analyzed in organizations. To be sure, a diploma or a certification in IFRS is a must-have if you want to work in any of the more than 140 jurisdictions that mandate the standards for domestic public companies.
Note: IFRS is not the only accounting standard. Generally Accepted Accounting Principles (GAAP) is another. GAAP may be the better choice if your plans involve practicing accountancy in the United States of America. If you are unsure about your plans but are certain you want to become an accountant, consider enrolling in an ACCA course and obtaining the ACCA professional designation from the Association of Chartered Certified Accountants. The ACCA qualification can prepare you for both standards.
What Is an IFRS Certification?
An IFRS certificate is a qualification that indicates the bearer has fundamental knowledge and understanding of International Financial Reporting Standards. It’s a good qualification to have if you’re considering accountancy as a career. You can be certified by taking and passing the assessment.
For instance, to obtain the IFRS certification via ACCA (i.e., Cert IFR), you will take a 25-item, multiple-choice certification exam. You will apply for a test permit, take the assessment online, and have an hour to complete it. The goal is to get a score of 50%.
If you fail on your first try, you can attempt the exam two more times to try to get the passing mark. You’ll get 60 minutes for every attempt.
Unless you’re a practicing accountant or professional using IFRS in your daily tasks, it’s recommended that you take the IFRS certification course before you attempt to sit for the certification exam. This course will teach you:
- The history of IASB
- How IFRS works
- The evolution of IFRS into its current form
- IFRS’s foundational requirements on a standard-by-standard basis
- How to apply IFRS in practice
In short, the IFRS certification process provides basic but practical knowledge about IFRS and is a good starting point for a career in accountancy and finance. It’s a good supplement to other relevant programs like the CFA course.
What Is an IFRS Diploma?
An IFRS diploma is the next IFRS qualification level. It is for financial professionals and those with more advanced accounting experience and knowledge but need to fill a gap in their IFRS proficiency. To be eligible for the program:
- you must be a practicing professional accountant or auditor; and
- you must have a national accounting standards qualification.
If you don’t meet the above conditions but are already working as an accountant or auditor in practice or business, you may still be qualified if you can prove any of the following:
- Two years of accounting experience PLUS either a relevant bachelor’s degree or a CertIFR (IFRS certification)
- Three years of accounting experience
- ACCA affiliate status
A letter from your employer attesting to your relevant experience is the proof you need.
What will you learn in an IFRS diploma course? A Dip. in IFRS from ACCA will engender in you a profound understanding of the standards that comprise IFRS and the principles that underpin it. The course covers various topics, including:
- The standards’ sources of authority
- The components of financial statements
- How financial statements are presented
- Required disclosures
- How to prepare external financial reports intended for joint ventures, associates, and combined entities
At the end of the Dip. IFRS ACCA course, you will be able to:
- Understand and discuss the IFRS conceptual framework
- Prepare IFRS-compliant financial statements
- Identify and fulfill required disclosures
- Create external-facing statements for multiple stakeholders.
To obtain the diploma, you must sit for a computer-based exam. The exam takes place twice a year (June and December) and lasts for three hours and 15 minutes. Only four questions comprise the test, each one worth up to 25 marks (combined calculations and written answers) for a possible top score of up to 100 points. You need 50% to pass.
IFRS Certification vs IFRS Diploma: Which One Do You Need?
Now that you understand what the IFRS certification and diploma are all about, it’s time to decide which one you need to take.
The IFRS certification is for you if you need an introduction to and a basic grounding in IFRS. Maybe you became an ACCA before IFRS was part of the ACCA program of study, or perhaps you’re an accounting staff member who must learn to collect and log data according to IFRS guidelines.
The IFRS diploma lets you master the IFRS application, IFRS rules, and the underlying principles on which the standards were established. The IFRS diploma program is for you if you’re a professional accountant or auditor (qualified according to national accounting standards) occupying a relevant role in practice or business or can prove you have years of practical accounting experience.
If you don’t meet the IFRS diploma eligibility requirements, you can get an IFRS certification and use that as a stepping stone towards an IFRS diploma. If you have no background in accounting or finance, you may start with our Jumpstart Program, and then proceed with the IFRS certification or diploma program.
Phoenix Financial Training is a provider of financial training courses in the Middle East and India, and it is known for being the longest-standing Platinum provider of ACCA courses in the region.
We provide stellar student support, with a lifetime pass guarantee for those in face-to-face programs. Therefore, if you’re a face-to-face program student who fails your qualification exam, you can keep retaking the course for free until you finally pass, provided you attend all classes and fulfill all course requirements.
Contact us for advice and guidance on your journey towards a career in accountancy.
