Impact of change in exam pattern of DipIFR (Diploma in IFRS)applicable in June 2020

The diploma in IFRS exam till June 2019 had a 40-mark question on consolidation and 60 marks from other standards which demanded expertise on consolidation as well other standards. If a candidate was not well versed with consolidation procedures, the chances of passing reduced considerably, in spite of having good knowledge of other standards.

Though, the consolidation question did test knowledge of other standards, but without knowing the system to attempt & present, life of a participant was tough to determine, where to begin, what to read first, how to attempt or present, the things to keep in mind to avoid committing mistakes. An error could result in impacting the working calculations which were related, though there were marks for every line item done correctly.

The question on consolidation also resulted in creating fear and doubt among participants who were willing to get the coveted status of Diploma in IFRS, one of the few people around the world, who are able to prove that, they are not only knowledgeable in IFRS, but they are also able to apply IFRS in day to day operations.

The Consolidation question was lengthy and it was not easy to comprehend the intricacies of IFRS, all at once. This demanded thorough knowledge of the subject and how the knowledge of other standards was presented or included as of the part of the presentation of Consolidated Statement of Financial Position or Consolidated Income Statement. The implementation of the knowledge was tested thoroughly along with consolidation procedures.

Here’s good news for the learners or followers of IFRS or those willing to get the status of IFRS diploma holder from ACCA UK, the pattern of exam is changing!

The change in pattern does not mean the technical difficulties are reduced or increased, they remain the same. One has to be well versed in the knowledge of IFRS to be able to score more than 50 marks in the exams held in June or December every year.

The knowledge of all the standards will be given equal importance and the heavy reliance on testing knowledge of Consolidation process and its link with other standards will be reduced to some extent. This simply means that the knowledge of other standards, which was tested within the notes of Consolidation questions, will now be tested separately. This results in reduced number of notes within Consolidation question, since it is reducing from a 40-mark question to a 25-mark question.

The new exam pattern will have four questions of 25 marks each, which will give a chance to the preparer to ask more questions from other standards.

It is an opportunity for participants with thorough knowledge to enjoy the examination having touched upon majority of the syllabus. At the same time, this gives a chance to participants who are not very well versed in Consolidation standards to be able to pass the examination on the basis of knowledge of other standards.

Earlier, the participants with thorough knowledge of Consolidation system had a higher chance of passing, even if ,they were not technically sound in the knowledge of all the accounting standards.

This change gives equality in terms of preparedness and equal importance to the knowledge of IFRS. Earlier, if a participant was not very confident, in terms of knowledge of IFRS but was coached with exam techniques to pass, had chances of passing by applying the correct procedures and methods. In today’s scenario, the participant has to be well versed in knowledge as well as exam techniques to easily navigate through all the questions and score the maximum marks.

The participants willing to appear DipIFR exam in June 2020, should not get encouraged or discouraged with the exam pattern, since the change is welcoming.

It gives an opportunity to participants, who are willing to develop knowledge of IFRS, to read thoroughly and be prepared, to be tested on range of IFRS topics or skills, required to prepare true & fair financial statements.

It is an opportunity to become a highly qualified professional, who can demonstrate their IFRS skills in the toughest of accounting scenarios.

Accept the change with dignity and face it with courage & enthusiasm.

Exam is a challenge and facing a challenge results in great learning experience.

Keep learning, be motivated, enjoy the process and become a winner.

All the best wishes!

ACCA Amit Kumar