SCMS Cochin School of Business organizes Industry Institute Interaction (III) sessions throughout the year to introduce students to new concepts and business practices that can increase their knowledge and employability.
On 10th of September 2014, the current PGDM batch attended the III session on International Financial Reporting Standards (IFRS). It is important for the PGDM students to understand the finer nuances of IFRS since they are now adopted globally. IFRS were first designed to harmonize accounting across the European Union, but the concept was soon adopted world over, making company accounts understandable and comparable across international boundaries.
Mr. Mahesh Mohan, External Quality Assessor, IAAP, UK, and Prof Dr. Gopal Sharma, National Trainer, IFRS, addressed the 23 students who were eager to learn the features and challenges of IFRS. The session began with the main speaker, Mr. Mohan, a member of the International Association of Accounting Professionals (IAAP), talking about the importance of IFRS as a Global business accounting language. He explained that IFRS are specifically crucial for multinational companies, and how their significance has increased with international shareholding and trade. He further surprised the audience with the fact that, “IFRS has been adopted and is practiced by 174 countries including India”.
IFRS are set by the IASB (International Accounting Standard Board) and have become global standards for preparing financial statements. The globally comparable financial statements enable public companies to compete abroad, raise capital, and win global contracts. Mr. Gopal Sharma spoke to the students next and discussed the importance of understanding and practicing the IFRS. He said, “IFRS needs to be understood and followed in letter and spirit when preparing financial statements since the balance sheets and accounting statements communicate the health, wealth and pulse of a business to its stakeholders”.
The floor was eventually thrown open for discussion and the students posed questions to and interacted with the experts to clear their doubts and queries. The session was concluded by Dr. Filomina P. George, Dean- Academic Administration, SCMS Cochin School of Business, who informed the students about the inclusion of IFRS in the PGDM curriculum.
-Sobia Joseph, PGDM, Batch 23