Join Your Exam WhatsApp group to get regular news, updates & study materials HOW TO JOIN

Difference between ACCA and IFRS

Difference between ACCA and IFRS

Difference between ACCA and IFRS: The ACCA is one of the bodies the govern accountancy qualifications. In Ireland (and Europe and the world though the accountancy bodies available may vary) you can become qualified under several accountancy bodies – the ACA, the ACCA, CIMA etc. Each have their own set of exams you must pass before you are qualified.

IFRS refers to actual accounting standards. These are the ways various things can be measured or portrayed in a set of accounts. For example IFRS 13 sets out fair value measurement – essentially how you can value certain assets in a balance sheet.

Simply put ACCA refers to a type of accountancy qualification but IFRS refers to a set of rules accountants work with when completing statutory accounts.

Difference between ACCA and IFRS

What is IFRS standards?

High quality, reliable financial information is the lifeblood of capital markets.

Accounting provides companies, investors, regulators and others with a standardised way to describe the financial performance of an entity. Accounting standards present preparers of financial statements with a set of rules to abide by when preparing an entity’s accounts, ensuring this standardisation across the market. Companies listed on public stock exchanges are legally required to publish financial statements in accordance with the relevant accounting standards.

International Financial Reporting Standards (IFRS Standards) is a single set of accounting standards, developed and maintained by the International Accounting Standards Board (the Board) with the intention of those standards being capable of being applied on a globally consistent basis—by developed, emerging and developing economies—thus providing investors and other users of financial statements with the ability to compare the financial performance of publicly listed companies on a like-for-like basis with their international peers.

IFRS Standards are now mandated for use by more than 100 countries, including the European Union and by more than two-thirds of the G20. The G20 and other international organisations have consistently supported the work of the the Board and its mission of global accounting standards.

IFRS Standards are developed by the the Board, the standard-setting body of the IFRS Foundation—a public-interest organisation with award-winning levels of transparency and stakeholder participation. Its 150 London-based staff are from almost 30 different countries. The Board’s 12 members are appointed and overseen by 22 Trustees from around the world, who are in turn accountable to a Monitoring Board of public authorities.

Difference between ACCA and IFRS

What is ACCA?

ACCA stands for the Association of Chartered Certified Accountants a leading international accountancy body. The ACCA qualification is recognised and is treated in other countries as being equivalent to their local qualification.

The ACCA qualification proves to employers that you have ability in all aspects of business
It is the largest and fastest growing qualification in the world, with over 500,000 members and students in 170 countries

Benefits of the ACCA qualification

* enables you to become a Chartered Certified Accountant, use the designatory letters ACCA, and work in any aspect of finance or management in any business.

* better employment prospects as a result of having shown an ability in all areas of business.

* assures an employer that you have the skills necessary to progress to more senior management positions.

* higher status in the eyes of an employer, and also your clients

* ACCA is the largest and fastest-growing global professional accountancy body in the world, with over 320,000 members and students in 170 countries

* gaining such a qualification is evidence that the holder possesses skills and knowledge which are in high demand by employers in industry, banking, auditing, consulting as well as other professions like taxation and law.

* candidates not only gain specialist knowledge in finance and accounting, but also acquire valuable skills in organisational management and strategy

* the qualification does not concentrate only on theory, and unlike Universities prepares a graduate for practical usage.

* the qualification is based on international accounting and auditing standards and is IFAC compliant

* ACCA Professional qualification is of a high standard and is equivalent to completing full University Degree

* with exams twice a year students can work while they study

* personal satisfaction of having acquired the business skills

Difference between ACCA and IFRS

The growing acceptance of International Financial Reporting Standards (IFRS) as a basis for U.S. financial reporting represents a fundamental change for the U.S. accounting profession. The number of countries that require or allow the use of IFRS for the preparation of financial statements by publicly held companies has continued to increase. In the United States, the Securities and Exchange Commission (SEC) is taking steps to determine whether to incorporate IFRS into the financial reporting system for U.S. issuers and, if so, when and how.

Worldwide Momentum The international standard-setting process began several decades ago as an effort by industrialized nations to create standards that could be used by developing and smaller nations unable to establish their own accounting standards. But as the business world became more global, regulators, investors, large companies and auditing firms began to realize the importance of having common standards in all areas of the financial reporting chain. In a survey conducted in late 2007 by the International Federation of Accountants (IFAC), a large majority of accounting leaders from around the world agreed that a single set of international standards is important for economic growth. Of the 143 leaders from 91 countries who responded, 90% reported that a single set of international financial reporting standards was “very important” or “important” for economic growth in their countries.

Difference between ACCA and IFRS

Currently, more than 120 nations and reporting jurisdictions permit or require IFRS for domestic listed companies. The European Union (EU) requires companies incorporated in its member states whose securities are listed on an EU-regulated stock exchange to prepare their consolidated financial statements in accordance with IFRS.1 Australia, New Zealand and Israel have essentially adopted IFRS as their national standards.2 Brazil started using IFRS in 2010. Canada adopted IFRS, in full, on Jan. 1, 2011

. Mexico will require adoption of IFRS for all listed entities starting in 2012. Japan is working to achieve convergence of IFRS and began permitting certain qualifying domestic companies to apply IFRS for fiscal years beginning April 1, 2010. A decision regarding the mandatory use of IFRS in Japan is to be made around 2012. Hong Kong has adopted national standards that are equivalent to IFRS and China is converging its accounting standards with IFRS. Other countries have plans to adopt IFRS or converge their national standards with IFRS

Difference between ACCA and IFRS

Cakart.in provides India’s top IFRS faculty video classes – online & in Pen Drive/ DVD – at very cost effective rates. Get IFRS Video classes from www.cakart.in to do a great preparation for primary Student.

Watch IFRS sample video lectures visit www.cakart.in
Watch  IFRS  sample lecture books   visit www.cakart.in
Watch IFRS free downloads   visit www.cakart.in

Leave a comment

Your email address will not be published. Required fields are marked *