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IFRS guidance is available from sources such as international public accounting firms, accounting organizations like AICPA, and the IASB. Companies new to IFRS or with technical questions can benefit from guidance, but it may not always be necessary. Public accounting firms are a common source, but costs can add up. Chartered accountants may need broader guidance from organizations like AICPA. The IASB is a good source, but not all companies may have access.
The IFRS guidance is a third-party aid for individuals or companies who need more information on applying these accounting standards. Top tips for finding IFRS guidance include using an international public accounting firm, accounting organizations that offer guidance, and the International Accounting Standards Board (IASB), which writes and oversees IFRS. Guidance on these accounting standards is needed for companies new to IFRS or for companies that have technical questions about specific transactions. Not all indications are created equal; the source is especially important for accounting guidance. Guidance may not always be necessary in the ongoing application of IFRSs.
A public accounting firm is often a common source for IFRS guidance as trained and licensed accountants need to keep current on IFRS. Companies may hire public accountants to review certain transactions or other accounting activities as part of their business operations. The IFRS guidance received is typically focused and relates to specific transactions in certain situations. The continued leadership of these accounting firms increases costs to the company’s P&L as public accounting firms most likely do not work for free. In most cases, a company establishes a relationship with a licensed accountant in order to receive IFRS guidance when needed.
For companies that may have chartered accountants working in their businesses, other sources of IFRS guidance may be needed. In this scenario, another source or guidance is often needed as licensed accountants may already have some knowledge of IFRS. Therefore, an accounting organization such as the American Institute of Certified Public Accountants (AICPA) can offer assistance on IFRS. The guidance of this institution can be broader in nature and far-reaching in its scope of topics. Licensed accountants typically have access to materials at the AICPA as they receive membership in this organization once they receive their certified public accounting license.
The IASB is also a good source for IFRS guidelines, especially since it is the institution that writes and issues these accounting standards. The indications received herein may take the form of official clarifications or additional statements instructing certain accounting principles. Not all companies may have access to this source of guidance; that’s why other sources might be better. The IASB and its accounting standards cover many different international countries, so there may be an IASB office in each country. Companies seeking guidance should apply to the office located in the country in which they are located.
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