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Reading 10: Mission of the IFRS Foundation and the IASB - Coggle Diagram
Reading 10: Mission of the IFRS Foundation and the IASB
TRANSPARENCY, ACCOUNTABILITY AND EFFICIENCY
THE VISION
IFRS Standards are developed by the Board
The Board was formed in 2001 as the successor to the IASC founded in 19773
want to create a single set of high quality global accounting standards that provide investors, lenders, etc with relevant, transparent and comparable info in general purpose financial statements
the vision in 2000
a single set of global accounting standards
the vision has not changed since 2000
convergence is not a substitute for adoption
there are different pathways towards adoption
countries need to establish their own ways to bring the IFRS Standards formally into national law
WHAT ARE THE IFRS STANDARDS?
how to measure those items;
how to present them in a set of financial statements; and
the items that should be recognised as assets, liabilities, income and expense;
related disclosures about those items.
HOW ARE THE IFRS STANDARDS DEVELOPED?
IFRS Standards are developed by the IASB (the Board), which:
is an independent standard-setting board
is supported by an external IFRS Advisory Council among other bodies
follows a thorough, open, participatory and transparent process
has approx. 150 staff from 30 countries and is based in London
engages with investors, regulators, business leaders, and the global accountancy profession at every stage of the process
has (at 1 April 2016) 14 full-time members from 11 countries and a variety of professional backgrounds
collaborates with the worldwide standard-setting community
THE PROCESS FOR DEVELOPING IFRS STANDARDS
research programme
discussion paper
agenda proposal
research
standards development
exposure draft
final IFRS Standard
agenda consultation
request for information
3-5-year plan
implementation
interpretation or narrow-scope amendment
post-implementation review
WHY ADOPT IFRS STANRDARD?
the world today has seemingly borderless financial markets
to assess the risks and returns of their investment opportunities, there is a need for relevant, reliable and comparable financial information