The IASC Foundation is an independent, not-for profit private sector organisation working in the public interest. Its principal objectives are:
• to develop a single set of high quality, understandable, enforceable and globally accepted international financial reporting standards (IFRSs) through its standard-setting body, the IASB;
• to 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 (SMEs); and
• to bring about convergence of national accounting standards and IFRSs to high quality solutions.
The governance and oversight of the activities undertaken by the IASC Foundation and its standard-setting body rests with its Trustees, who are also responsible for safeguarding the independence of the IASB and ensuring the financing of the organisation. The Trustees are publicly accountable to a Monitoring Board of public authorities.
The IASB (International Accounting Standards Board)
The IASB is the independent standard-setting body of the IASC Foundation. Its members (currently 15 full-time members) are responsible for the development and publication of IFRSs, including the IFRS for SMEs and for approving Interpretations of IFRSs as developed by the IFRIC. All meetings of the IASB are held in public and webcast. In fulfilling its standard-setting duties the IASB follows 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 IASB engages closely with stakeholders around the world, including investors, analysts, regulators, business leaders, accounting standard-setters and the accountancy profession.
The IFRIC (International Financial Reporting Interpretations Committee)
The IFRIC is the interpretative body of the IASB. The IFRIC comprises 14 voting members appointed by the Trustees and drawn from a variety of countries and professional backgrounds. The mandate of the IFRIC is to review on a timely basis widespread accounting issues that have arisen within the context of current IFRSs and to provide authoritative guidance (IFRICs) on those issues. IFRIC meetings are open to the public and webcast. In developing interpretations, the IFRIC works closely with similar national committees and follows a transparent, thorough and open due process.
Supporting the objectives of the IASC Foundation
All other activities undertaken by the IASC Foundation in support of the objectives of the organisation are managed by the IASC Foundation’s staff.
Those activities include:
• the creation of an XBRL taxonomy for IFRSs and the IFRS for SMEs to facilitate the electronic use, exchange and comparability of financial data prepared in accordance with IFRSs. This is done by the IFRS XBRL team.
• the production of high quality, understandable and up to date material including freely downloadable training material for the IFRS for SMEs, and the organisation of conferences and workshops about IFRSs. These activities are grouped within the IASC Foundation Education Initiative.
• the protection of the IFRS brand and the support of global convergence through addressing translation and copyright issues and contributing to the financing of the organisation through the provision of publication services. These activities are grouped under Content Management.
• operations, including the day-to-day management of and support for the organisation. Also included are communications, improving and expanding external relationships, and promoting a better understanding of the work of the organisation.