Structure of the IFRS regulatory system

International Financial Reporting Standards (IFRS) Foundation

The IFRS Foundation (formerly known as the International Accounting Standards Committee Foundation (IASC)) is the supervisory body for the IASB and is responsible for governance issues and ensuring each member body is properly funded.

The principal objectives of the IFRS Foundation are to:

• develop a set of high quality, understandable, enforceable and globally accepted financial reporting standards
• promote the use and rigorous application of those standards
• to take account of the financial reporting needs of emerging economies and small and medium sized entities
• bring about the convergence of national and international financial reporting standards.

International Accounting Standards Board (IASB)

The IASB is the independent standard setting body of the IFRS foundation. Its members are responsible for the development and publication of IFRSs and interpretations developed by the IFRS IC. Upon its creation the IASB also adopted all existing International Accounting Standards.

All of the most important national standard setters are represented on the IASB and their views are taken into account so that a consensus can be reached. All national standard setters can issue IASB discussion papers and exposure drafts for comment in their own countries, so that the views of all preparers and users of financial statements can be represented. Each major national standard setter 'leads' certain international standard-setting projects.

The IFRS Interpretations Committee (IFRS IC)

The IFRS IC reviews widespread accounting issues (in the context of IFRS) on a timely basis and provides authoritative guidance on these issues (IFRICs). Their meetings are open to the public and, similar to the IASB, they work closely with national standard setters.

The IFRS Advisory Council (IFRS AC)

The IFRS AC is the formal advisory body to the IASB and the IFRS Foundation. It is comprised of a wide range of members who are affected by the IASB's work. Their objectives include:

• advising the IASB on agenda decisions and priorities in the their work,
• informing the IASB of the views of the Council with regard to major standard-setting projects, and
• giving other advice to the IASB or to the Trustees.

Development of an IFRS

The procedure for the development of an IFRS is as follows:

• The IASB identifies a subject and appoints an advisory committee to advise on the issues.
• The IASB publishes an exposure draft for public comment, being a draft version of the intended standard.
• Following the consideration of comments received on the draft, the IASB publishes the final text of the IFRS.
• At any stage the IASB may issue a discussion paper to encourage comment.
• The publication of an IFRS, exposure draft or IFRIC interpretation requires the votes of at least eight of the 15 IASB members.

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Tags:	IFRS Foundation;IASB;IFRS Interpretations Committee;IFRS Advisory Council