1. International Education Standard (IES) 2 prescribes the learning outcomes for technical competence that aspiring professional accountants are required to achieve by the end of Initial Professional Development (IPD). Technical competence is the ability to apply professional knowledge to perform a role to a defined standard.
2. IES 2 is addressed to International Federation of Accountants (IFAC) member organizations. IFAC member organizations have responsibility for ensuring that IPD meets the requirements of IES 2. In addition, IES 2 may be helpful to educational organizations, employers, regulators, government authorities, and any other stakeholders who support the learning and development of aspiring professional accountants.
3. IES 2 specifies the competence areas and learning outcomes that describe the technical competence required of aspiring professional accountants by the end of IPD. IES 3, Initial Professional Development - Professional Skills (2026), and IES 4, Initial Professional Development - Professional Values, Ethics, and Attitudes (2026), specify competence areas and learning outcomes relevant to their areas of focus within IPD. Together, these IESs specify the competence areas and learning outcomes that describe the professional competence required of aspiring professional accountants by the end of IPD.
4. Definitions and explanations of the key terms used in the IES and the Framework for International Education Standards for Professional Accountants and Aspiring Professional Accountants (2015) are set out in the International Education Standards Glossary of Terms (2026).

References to Definitions Contained within IFRS

1. IES 2 uses the following terms already defined within IFRS pronouncements.

IFRS Definitions Adopted in IES 2

Defined Term	Definition in IFRS pronouncement
Connected Information6	An entity shall provide information in a manner that enables users of general purpose financial reports to understand the following types of connections: (a) the connections between the items to which the information relates -- such as connections between various sustainability-related risks and opportunities that could reasonably be expected to affect the entity's prospects; (b) and the connections between disclosures provided by the entity: (i) within its sustainability-related financial disclosures-- such as connections between disclosures on governance, strategy, risk management and metrics and targets; and (ii) across its sustainability-related financial disclosures and other general purpose financial reports published by the entity --such as its related financial statements
General purpose financial reports7	Reports that provide financial information about a reporting entity that is useful to primary users in making decisions relating to providing resources to the entity. Those decisions involve decisions about: (a) buying, selling or holding equity and debt instruments; (b) providing or selling loans and other forms of credit; or (c) exercising rights to vote on, or otherwise influence, the entity's management's actions that affect the use of the entity's economic resources. General purpose financial reports include--but are not restricted to--an entity's general purpose financial statements and sustainability-related financial disclosures.

2. An aspiring professional accountant is an individual who has commenced a professional accounting education program as part of IPD. IPD is the learning and development through which aspiring professional accountants first develop competence leading to performing a role as a professional accountant. IPD builds on general education and includes professional accounting education, practical experience, and assessment. IPD continues until aspiring professional accountants can demonstrate the professional competence required for their chosen roles in the accountancy profession.
3. Internationally, there are significant legal and regulatory differences that determine the point of qualification (or licensing) of professional accountants. Each IFAC member organization may define the appropriate relationship between the end of IPD and the point of qualification (or licensing) for its members.
4. The inclusion of technical competence in IPD lays the base for performing a role as a professional accountant. Further development of technical competence is a focus of Continuing Professional Development (CPD), which is covered in IES 7, Continuing Professional Development (2020).
5. Professional competence can be described and categorized in many different ways. Within the IES, professional competence is the ability to perform a role to a defined standard. Professional competence goes beyond knowledge of principles, standards, concepts, facts, and procedures; it is the integration and application of: (a) technical competence, (b) professional skills, and (c) professional values, ethics, and attitudes.
6. A competence area is a category for which a set of related learning outcomes can be specified. Competence areas within technical competence include financial accounting and reporting, taxation, and economics; competence areas within professional skills include intellectual and organizational; and competence areas within professional values, ethics, and attitudes include ethical principles as well as professional skepticism and professional judgment.
7. Learning outcomes establish the content and the depth of knowledge, understanding, and application required for each specified competence area. Learning outcomes can be achieved within the context of a work environment or professional accounting education program.

⁶ Connected Information, IFRS S1, General Requirements for Disclosure of Sustainability-related Financial Information, June 2023, Para. 21

⁷ Appendix A Defined terms, IFRS S1, General Requirements for Disclosure of Sustainability-related Financial Information, June 2023

8. Establishing the technical competence that aspiring professional accountants need to develop and demonstrate serves several purposes. It protects the public interest, enhances the quality of the work of professional accountants, and promotes the credibility of the accountancy profession.

9. The requirement lists the learning outcomes for the technical competence to be achieved by aspiring professional accountants by the end of IPD, regardless of their intended future accounting specialization or role. These learning outcomes provide the base to enable professional accountants to develop specializations in different accounting roles, for example, an audit engagement partner, or a taxation specialist, or a sustainability reporting manager.
10. In the design of professional accounting education programs, the 12 competence areas listed in the requirement may not be identical to the names of prescribed courses or subjects. Also, the learning outcomes associated with one competence area may be achieved across more than one course or subject dedicated to that area. For example, the learning outcomes for financial accounting and reporting may be achieved across two or more financial accounting and reporting courses or subjects. The achievement of some learning outcomes may extend across several different courses or subjects, none of which may be devoted solely to that competence area. For example, the learning outcomes within information and communications technologies may be achieved through the integration of relevant material within courses that focus on management accounting, assurance, and/or auditing. In addition, the sequence in which the competence areas are included in a professional accounting education program may differ from the sequence presented in the requirement. For example, economics is listed towards the end of the list of competence areas in the requirement, but may be covered in an earlier phase of a professional accounting education program.
11. Learning outcomes are written to allow for principles-based interpretation by IFAC member organizations during the design of their professional accounting education programs. For example, in assurance, learning outcome (v) refers to assurance procedures, which includes both quantitative and qualitative procedures. Similarly, in management accounting, learning outcome (i) refers to metrics and targets, which includes both financial and non-financial metrics and targets.
12. There are many ways to describe and classify levels of proficiency. The description developed for purposes of the IES is provided in Appendix 1, Description of Levels of Proficiency.
13. In the requirement, each competence area has been assigned a level of proficiency that aspiring professional accountants are expected to achieve by the end of IPD. This level of proficiency indicates the level of ambiguity, complexity, and uncertainty in which the relevant learning outcomes are expected to be demonstrated. Together, the directive verbs used in learning outcomes and the level of proficiency of the competence area provide information to help IFAC member organizations design their professional accounting education programs.
14. For example, finance and financial management is at an intermediate competence level. Within this competence area, learning outcome (iii) includes scenario analysis. IFAC member organizations determine the appropriate way to include scenario analysis in the design of their professional accounting education programs at a moderate level of ambiguity, complexity and uncertainty. Assurance and economics are at a foundation level. IFAC member organizations determine the appropriate way to include the assurance and economics learning outcomes in the design of their professional education programs at a low level of ambiguity, complexity and uncertainty.
15. In professional accounting education programs, an IFAC member organization may: (a) include additional competence areas; (b) increase the level of proficiency for some competence areas; or (c) develop additional learning outcomes that are not specified in IES 2. This may occur when an IFAC member organization prepares aspiring professional accountants to work within a particular industry sector (for example, the public sector) or for a particular role (for example, a management accountant or an auditor).

Financial accounting and Reporting - Learning Outcomes

16. General purpose financial reports provide financial information about a reporting entity that is useful to primary users in making decisions about providing resources to the entity⁸. These reports may include an entity's general purpose financial statements and sustainability-related disclosures⁹.
17. IFAC member organizations design their professional accounting education programs to include general purpose financial reporting based upon the relevant standards applicable to their jurisdictions. This may include sustainability-related disclosures under IFRS or other frameworks.

Management Accounting - Learning Outcomes

18. Professional accountants in business can support management decision making by using both financial and non-financial data and information. Some examples of non-financial data and information include:
• Customer-related measures
• Greenhouse gas emissions
• Employee metrics

19. Analyzing an organization's value chain involves considering how the applicable sustainability reporting framework defines, describes or otherwise specifies a value chain in its framework.

Finance and Financial Management - Learning Outcomes

20. When evaluating capital investment decisions using capital budgeting techniques, professional accountants take into consideration financial and non-financial data and information relevant to management decision making.

Assurance - Learning Outcomes

21. The assurance competence area lists learning outcomes for assurance engagements. The underlying subject matter and level of assurance can vary for different assurance engagements. IFAC member organizations determine the appropriate subject matter(s) for assurance engagements to include in the design of their professional accounting education program based upon their jurisdictional context. For example, some IFAC member organizations may wish to design their professional accounting education programs to include additional learning outcomes focused on sustainability assurance.
22. The learning outcomes within the assurance competence area are set at a foundation level of proficiency. Achieving these learning outcomes also enables aspiring professional accountants to develop higher levels of proficiency in different forms of assurance, such as assurance of sustainability-related disclosures, as well as for audits or reviews of historical financial information.

8 IFRS, Conceptual Framework for Financial Reporting

9 IFRS S1, General Requirements for Disclosure of Sustainability-related Financial Information, Appendix A

23. Professional accounting education programs are designed to support aspiring professional accountants to develop the required level of professional competence by the end of IPD. Such programs may include formal education delivered through qualifications and courses offered by universities, other higher education providers, IFAC member organizations, and employers, as well as workplace training. The design of professional accounting education programs may involve substantive input from stakeholders other than IFAC member organizations.
24. The requirement to review and update professional accounting education programs on a regular basis reflects the rapidly-changing and complex environment within which professional accountants operate. A typical review cycle may be three to five years, but it may be appropriate to undertake a more frequent review, for example to take account of changes in legislation, regulations, and standards relevant to professional accountants.

25. IES 6, Initial Professional Development - Formal Assessment of Professional Competence (2026), provides the principles that apply to the design, delivery, and oversight of assessment activities used to formally assess the technical competence and other elements of professional competence.
26. Various formal assessment activities can be used to assess the technical competence of aspiring professional accountants. IPD assessment activities can be delivered in different formats. Some examples of formats may include: (a) written or computer-based examinations, (b) presentations, (c) case studies, (d) simulations, (e) workplace assessments by employers, and (f) portfolio of evidence on completion of workplace activities.