In today's competitive environment, business operations are carried out on a global scale. However if different countries follow different accounting standards then it would be difficult for the users of financial statements to compare and understand the financial position of the company. This leads to a need for a global set of standards commonly referred to as ‘International Financial Reporting Standards (IFRS)’.IFRS are developed and maintained by The International Accounting Standards Board (IASB) with an objective to ensure globally consistent basis to compare the financial position of the companies on a like-for-like basis with their international peers. IFRS is today used in over 140 countries with the basic principle being clarity, relevance, reliability and comparability.

Understanding - Byjus revenue recognition case.

Ind AS 115 is largely converged with IFRS 15 and ASC 606 issued by the IASB and FASB. The standard contains principles that an entity will apply to determine the timing and amount of revenue to be recognised. India’s most valued startup Byju’s readjusted its unaudited revenues for FY21.In notes accompanying the audited financial results Deloitte, it's auditor said that Byju’s revenues from streaming services (the online courses it sells), which were previously recognised fully on commencement of contract, has been adjusted to be recognised rateably over the period of the contract. In addition, the interest on loans — granted directly to customers — but paid by Byju’s on their behalf, has been reclassified from finance cost and adjusted against revenues, since these payments are in the nature of payments to customers, the audit firm said. These two major changes in accounting have led to a huge reduction in revenue for the online tutoring platform and have also resulted in big losses.

Just as how a doctor keeps a human healthy, Chartered Accountants keep the financials healthy. Chartered Accountants play an indispensable role by ensuring the compliance of IFRS that provides a coherent set of accounting standards that helps the adoptees to improve quality and credibility of accounting information.

As rightly said by Sir A.P.J Abdul Kalam, "CAs are partners in nation building ; it is the constant effort of Chartered Accountants to ensure that IFRS fosters greater corporate transparency.