CIMA F1 Syllabus A. Regulatory Environment Of Financial Reporting - The Role Of The Regulatory Systems - Notes ^{4 / 8}

The IFRS Foundation (IFRSF)

The IFRS Foundation is an independent organisation having two main bodies:

1. The Trustees

2. The International Accounting Standards Board (IASB)

   as well as the IFRS Advisory Council (IFRS AC) and the IFRS Interpretations Committee (IFRS IC)

   The IFRS Advisory Council (IFRS AC) advises the IASB on agenda decisions and priorities in its work. It also informs the IASB of the views of interested parties (such as national standard setting bodies) on major standard setting projects.

   The IFRS Interpretations Committee (IFRS IC) has two main roles: to review new accounting issues not covered by standards and to clarify where there have been conflicting interpretations of a standard. The IFRS Interpretations Committee therefore reports to the IASB on these issues.

Responsibilities of The IFRS Foundation Trustees

• Governance and fundraising

• Raise the funds necessary to support the IFRSF

• Approve the annual budget of the IASB

• Appoint the members of the IASB, IFRS IC and the IFRS AC

• Review annually the strategy of the IASB and its effectiveness

• Publish an annual report on the IASB's activities

The International Accounting Standards Board (IASB)

- is an independent, global accounting standard-setter based in London, UK. 

It develops, in the public interest, a single set of high quality, understandable and enforceable global accounting standards (IFRS’s) that require transparent and comparable information in general purpose financial statements.  

It also co-operates with national accounting standard-setters to achieve convergence in accounting standards around the world

How are standards developed?

The development of an IFRS goes through 5 stages

1. Set up an advisory committee

   The committee will give advice at all stages of the process.

2. Develop and publish a discussion paper

   - which is issued for inviting public comment. 

   A discussion paper gives an overview of the accounting issue being considered and the potential options for how the issue could be dealt with.

3. Produce an exposure draft for public comment.

   An exposure draft is produced after all comments on the discussion paper have been received and processed. 

   An exposure draft will include detailed proposals of how the issue will be dealt with.

4. Amend exposure draft as a result of comments. 

   Once published comments are invited on the proposals in the exposure draft. 

   These comments are actioned and sometimes a new exposure draft is issued.

5. Publish a new or revised IFRS.

   This is the end result of the process.