International Financial Reporting Standards (2024)

FAQs

What are the limitations of international financial reporting standards? ›

High adoption costs

Implementation expenses are another important disadvantage of IFRS. Each nation adopting the new standards would be required to cover the expenses of retraining and education for the accounting profession. Additionally, businesses should devote time and money to the restoration process.

The truth is that, if you belong to any of the categories below then you need the knowledge and implementation of IFRS ; Those who analyze Financial Statements. Those who give Investment advice to clients. Those who manage Investment Portfolios for Local and Foreign Clients.

To effectively memorize these standards, it's essential to employ a combination of techniques such as active recall, spaced repetition, mnemonic devices, and consistent practice. These methods can help you retain complex information more efficiently and ensure you have a solid foundation in accounting standards.

Limited resources: Developing countries often have limited resources, which makes it difficult for them to adopt and implement IFRS. The cost of adopting IFRS, including training staff and purchasing software, can be significant, and many countries may not have the financial resources to do so.

One major difference between GAAP and IFRS is their methodology, with GAAP being rules-based and the latter being principles-based. This difference has posed a challenge in areas such as consolidation, the income statement, inventory, the earnings-per-share calculation, and development costs.

How long does it take? How you study for your ACCA Diploma in IFRS is very flexible and you can progress at your own pace. Students can complete the Diploma in 6‑12 months. For more information about the ACCA Diploma in IFRS please visit www.accaglobal.com.

Deloitte has developed a series of IFRS training modules which are offered free (upon registration) as a public service. Each module (approximate size: 3MB) can be downloaded as a . zip file and provides: Real life scenarios to demonstrate application of the standards.

Which Is Better: IFRS or GAAP? This is a matter of perspective. IFRS is more principles-based, while GAAP is rules-based. A focus on principles may be more attractive to some as it captures the essence of a transaction more accurately.

Changes made to the FAR exam only consist of content being removed, and namely, the removal of International Financial Reporting Standards (IFRS).

Is IFRS no longer on the CPA Exam? ›

In July 2021, the CPA Exam will change to reflect the new, technology-focused reality of the profession. The exam will test more on concepts like IT controls, automation and business processes — and less on topics like IFRS and U.S. GAAP.

GAAP tends to be more rules-based, while IFRS tends to be more principles-based. Under GAAP, companies may have industry-specific rules and guidelines to follow, while IFRS has principles that require judgment and interpretation to determine how they are to be applied in a given situation.

Deloitte's e-learning on IFRS has been a leading educational and training resource on IFRS since it was initially released in 2004, with a range of corporate, educational and professional organisations using the content as their primary tool for IFRS education. A listing of all the modules currently available is below.

International Financial Reporting Standards (IFRS) are a set of accounting rules for the financial statements of public companies that are intended to make them consistent, transparent, and easily comparable around the world.

The main four limitations of financial accounting are use of estimates and cost basis, accounting methods and unusual data, lacking data, and diversification. Companies have to use estimates when exact values cannot be obtained.

One limitation of financial statements is that they are open to human interpretation and error, in some cases even intentional manipulation of figures to inflate economic performance.

Disadvantages of international finance

Political turmoil in one country which is a stakeholder of international trade can affect the other stakeholder of the same trade-in another country. Depending on other country's exchange rate is always risky given that all the currencies have significant volatility.

The main limitation of integrated reporting is, it doesn't provide detailed information. Also, it includes non-financial information, due to which it is more time-consuming to prepare. It requires high expertise for understanding this report because it is a concise report explaining the matter in summary.