You're interviewing for a corporate accounting job. What's the one thing you must know?

1 What are accounting standards?

Accounting standards are the rules and principles that govern how financial information is recorded, presented, and disclosed. They ensure that the financial statements of different entities are comparable, reliable, and transparent. There are two main sets of accounting standards that are widely used around the world: the International Financial Reporting Standards (IFRS) and the Generally Accepted Accounting Principles (GAAP).

2 Why are accounting standards important?

Accounting standards are important because they affect how corporate accountants perform their duties and how their work is evaluated. For example, accounting standards determine how assets, liabilities, revenues, and expenses are measured and recognized, how financial statements are structured and formatted, and what disclosures are required. Accounting standards also influence how auditors, regulators, investors, and other stakeholders assess the financial performance and position of an entity.

3 How to prepare for accounting standards questions?

To prepare for accounting standards questions, you need to do some research and practice. First, you need to find out what accounting standards are applicable to the role and the industry you're applying for. For example, if you're applying for a multinational corporation, you might need to know IFRS, while if you're applying for a US-based company, you might need to know GAAP. Second, you need to review the key concepts and differences between the accounting standards. For example, you might need to know how IFRS and GAAP treat inventory valuation, revenue recognition, leases, or impairment. Third, you need to practice answering common accounting standards questions. For example, you might need to explain how you would account for a certain transaction, how you would reconcile different accounting standards, or how you would evaluate the impact of accounting standards changes.

4 What are some examples of accounting standards questions?

In a corporate accounting interview, you may be asked questions about accounting standards such as how to account for goodwill under IFRS and GAAP, the differences between IFRS and GAAP in terms of revenue recognition, the functional currency of a foreign operation under IFRS and GAAP, the accounting of operating and finance leases under IFRS and GAAP, or the impairment of non-financial assets under IFRS and GAAP. All of these topics are important to understand when it comes to corporate accounting.

5 How to answer accounting standards questions?

To answer accounting standards questions, you need to follow a clear and logical approach. When doing so, it is important to define the terms and concepts involved in the question, such as goodwill, revenue recognition, functional currency, leases, or impairment. Additionally, you should identify the relevant accounting standards and sources like IFRS or GAAP standards, pronouncements, or guidance. Furthermore, explain the accounting treatment and rationale under each standard, including steps, methods, criteria, or assumptions used to account for the question. A comparison of the accounting standards and highlighting of differences and similarities is also necessary. Lastly, provide examples or calculations to illustrate your answer with numbers, formulas, tables, or charts to show how the question would be accounted for under IFRS or GAAP.

6 How to impress the interviewer with your accounting standards knowledge?

To impress the interviewer with your accounting standards knowledge, you need to demonstrate not only familiarity with the rules and principles, but also understanding of their implications and applications. Show awareness of the current and emerging issues and trends in accounting standards, such as how the recent or upcoming changes in IFRS or GAAP affect the question or the industry. Demonstrate your analytical and critical thinking skills by evaluating the advantages and disadvantages of each accounting standard, or discussing the challenges and opportunities of applying or adopting them. Connect your answer to your experience and skills, such as how you have used or applied the accounting standards in previous or current roles, or how you have learned or improved them through training or education.