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What Are the Best Tips for IFRS Guidance?

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  • Written By: Osmand Vitez
  • Edited By: PJP Schroeder
  • Last Modified Date: 22 November 2016
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IFRS guidance represents third-party help for individuals or companies that need more information on applying these accounting principles. The best tips for finding IFRS guidance include the use of an international public accounting firm, accounting organizations that offer guides, and the International Accounting Standards Board (IASB), who writes and oversees IFRS. Guidance for these accounting principles is necessary for companies that are using IFRS for the first time or businesses that have technical questions on specific transactions. Not all guidance is the same; the source is especially important for accounting guidance. Guidance may not always be needed in the constant application of IFRS.

A public accounting firm is often a common source for IFRS guidance as trained and licensed accountants must keep current on IFRS. Companies can hire public accountants to review certain transactions or other accounting activities within its business operations. The IFRS guidance received is typically focused and relates to specific transactions in certain situations. Ongoing guidance from these accounting firms increases costs to the company’s income statement 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 necessary.

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For companies that may have licensed accountants working in their businesses, other sources of IFRS guidance may be necessary. In this scenario, another source or guidance is often necessary 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 help on IFRS. The guidance from this institution may be more broad in nature and wide ranging in its scope of topics. Licensed accountants typically have access to the materials at the AICPA as they receive membership into this organization once receiving the certified public accounting license.

The IASB is also a good source for IFRS guidance, especially as they are the institution that writes and issues these accounting principles. The guidance received here may come in the form of official clarifications or additional statements that instruct on certain accounting principles. Not all companies may have access to this source of guidance; that is why other sources may be better. The IASB and its accounting principles cover many different international countries, so there may be an IASB office in each country. Companies seeking guidance should approach the office located in the country in which it is located.

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