Iasb and What Is Their Function?

Topics: International Financial Reporting Standards, International Accounting Standards Board, Financial Accounting Standards Board Pages: 1 (360 words) Published: February 23, 2013
The IASB (International Accounting Standards Board) is the standards-setting body that functions within the IFRS (International Financial Reporting Standards).The 15 members are responsible for the development of the IFRSs, including the IRFS and SMEs (small and medium-sized entities) and for approving interpretations of IFRSs as developed by the IFRS interpretations committee. Through extensive outreach activities and input into standards-setting from stakeholders, IASB is able to do the necessary research leading to proposals for activating changes in standards. Proposals of an agenda decision are brought to public consultation and an exposure draft is created. Once the exposure draft is created it is brought back to public consultation where it is then published to the IFRS along with the creation of a feedback statement. At this juncture there is a jurisdictional adoption process then an IASB year post-implementation review. The IASB fulfills its standard setting duties by following a thorough, open and transparent due process of which the publication of consultative documents, such as discussion papers and exposure drafts, for public comment is an important component. The purpose of the IASB and as their objective states is to develop a single set of high quality, understandable, enforceable, and globally accepted financial reporting standards based upon clearly articulated principles. The IFRS accomplishes its objective and therefore the IASB objective by using an independent standard board (IASB) that is accountable to a monitoring board of public capital market authorities. They do this by also engaging with investors, regulators, business leaders, and the global accounting profession at every stage of the process. By providing public accountability through the transparency of their work, the consultation with the full range of interested parties in the standards-setting process and their formal accountability links to the public, accomplishes the...
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