IFRS encompasses all accounting and financial principles that enable consistency, comprehensiveness, and connectivity of information globally. An example would be how over 140 countries around the world already use the IFRS accounting standards. Hence, for Accountants to remain relevant in this competitive world, it is important for them to adopt these standards. In this piece, we highlight the key standards of IFRS that every accountant must understand.

1. IFRS 1: First-time Adoption of IFRS

This standard is intended to smooth the transition of an entity to IFRS for the first time. It makes it easier to change by stating that the organization must prepare an IFRS-based Statement of Financial Position as at the date of the first transition. For this particular standard, it is imperative for most accountants to understand the scope, exemption, and other exceptions to this standard to limit disruption to their firms.

2. IFRS 9: Financial Instruments

IFRS 9 is a new standard that prescribes the criteria for the recognition, measurement, and derecognition of financial assets and financial liabilities. It prescribes a principled and comprehensive approach to credit risk assessment while moving away from historical loss to an expected credit loss model. It is important to understand, which are its three spheres: classification and measurement, impairment, and hedge accounting because they represent key elements of financial activities and reporting

3. IFRS 15: Revenue in the Course of Action of Contracts with Clients 

This rule consists of 5 phases of demanding the implementation of the said revenue:

1. Get the agreement with the client. 
2. Get the performance: what should the client do?
3. How to apply or agree on a transaction. 
4. Split or divide the price into equal bundles for obligations. 
5. Revenue is related to performance obligations it turns out to be satisfied only when the performance is done in the first place. 

4. IFRS 16: Leases Under IFRS 16

A lessee should recognize nearly all leases on its balance sheet as a right-of-use asset and the related lease liability. This standard replaces the traditional split between operating and finance leases. It brings about changes that an accountant should learn when reporting financial metrics.

 5. IFRS 17: Insurance Contracts 

An entity should account for its insurance contracts by adopting a uniform model of measurement and presentation for these contracts. This standard contrasts the requirement that profits of a contractual deal be recognized once the entity agrees with a customer. Accountants must learn this standard as it is necessary for financial reports to be true and without any errors.

6. IAS 1: Financial Statements

Although it is not an IFRS standard, IAS 1 is important to completely comprehend the framework. It focuses on minimum content requirements, structural requirements, and the concept of fair presentation and compliance with IFRS requirements. Being conversant with IAS 1 becomes an important element in the preparation of financial statements that can be accepted on an international level. 

7. IAS 16: Plant, Property and Machinery 

The standard explains the procedures on how to record, value, and depreciate tangible assets. Accountants have to comprehend the cost and the revaluation models to ensure that the fixed assets of the entity are reported as required. 

Apprehending the Importance of IFRS

Global Acceptance: Investors and other stakeholders will be able to enhance their decision-making as the comparability of financial information is improved by the adoption of IFRS. 

Regulatory Issues: The adoption of IFRS will assist in compliance with the international standard of financial reporting as well as local ones. 

Professional Advancement: The asset of knowledge of IFRS will increase the chances of securing jobs in multinational companies and sectors with international input. 

Conclusion

In a fast-paced ever-changing business world, being IFRS literate is a must for an accountant. The above standards are only a few out of the massive list of what constitutes the framework of IFRS and which are among the most fundamental ones. By mastering such key standards, an accountant progresses in his profession, and the quality of financial reporting improves considerably boosting the success of the firm where this accountant works.