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The International Accounting Standards Board (IASB) is the independent,
accounting standard Publicly traded companies typically are subject to the most rigorous standards. Small and midsized businesses often follow more simplified standards, plus any specific disclosures required by their specific lenders and shareholders. Some firms oper ...
-setting body of the
IFRS Foundation The International Financial Reporting Standards Foundation, or IFRS Foundation, is a nonprofit A nonprofit organization (NPO), also known as a non-business entity, not-for-profit organization, or nonprofit institution, is a legal entity orga ...
. The IASB was founded on April 1, 2001, as the successor to the
International Accounting Standards Committee The International Accounting Standards Committee (IASC) was founded in June 1973 in London at the initiative of Henry Benson, Baron Benson, Sir Henry Benson, former president of the Institute of Chartered Accountants in England and Wales. The IASC w ...
(IASC). It is responsible for developing
International Financial Reporting Standards International Financial Reporting Standards, commonly called IFRS, are accounting standard Publicly traded companies typically are subject to the most rigorous standards. Small and midsized businesses often follow more simplified standards, plus ...
(IFRS Standards), previously known as
International Accounting Standards International Financial Reporting Standards, commonly called IFRS, are accounting standards issued by the IFRS Foundation and the International Accounting Standards Board (IASB). They constitute a standardised way of describing the company’s f ...
(IAS) and promoting the use and application of these standards."About the IASB"
IFRS Foundation, 2018.


IFRS Foundation

The IFRS Foundation’s predecessor body was called the International Accounting Standards Foundation (IASF). It was formed on February 6, 2001. The Foundation changed name to the International Financial Reporting Standards Foundation (IFRS Foundation) on 1 July 2010. It is incorporated as a not-for-profit corporation in
Delaware Delaware ( ) is a state in the Mid-Atlantic (United States), Mid-Atlantic region of the United States, bordering Maryland to its south and west; Pennsylvania to its north; and New Jersey and the Atlantic Ocean to its east. The state takes i ...
, USA. The IFRS Foundation is an independent, not-for-profit organisation. Its primary objective, as set out in its Constitution,"Constitution"
IFRS Foundation, 2018.
is to develop, in the public interest, a single set of high-quality, understandable, enforceable and globally accepted
International Financial Reporting Standards International Financial Reporting Standards, commonly called IFRS, are accounting standard Publicly traded companies typically are subject to the most rigorous standards. Small and midsized businesses often follow more simplified standards, plus ...
(IFRS Standards) based upon clearly articulated principles.


Mission Statement

According to the Foundation, their mission statement is to "develop IFRS® Standards that bring transparency,
accountability Accountability, in terms of ethics and governance, is equated with answerability, blameworthiness, legal liability, liability, and the expectation of account-giving. As in an aspect of governance, it has been central to discussions related to probl ...

accountability
and efficiency to
financial market A financial market is a market (economics), market in which people trade financial Security (finance), securities and derivative (finance), derivatives at low transaction costs. Some of the securities include stocks and Bond (finance), bonds, ra ...
s around the world. Our work serves the public interest by fostering trust, growth, and long-term
financial stability Financial stability is a property of a financial system A 'Financial system' is a system that allows the exchange of funds between financial market participants such as lenders, investors, and borrowers. Financial systems operate at national and ...
in the
global economy Global means of or referring to a globe A globe is a spherical of , of some other , or of the . Globes serve purposes similar to s, but unlike maps, they do not distort the surface that they portray except to scale it down. A model globe of Ear ...
." IFRS Standards are developed by the International Accounting Standards Board (IASB), the independent standard-setting body of the IFRS Foundation. The IASB assumed accounting standard-setting responsibilities from its predecessor body, the
International Accounting Standards Committee The International Accounting Standards Committee (IASC) was founded in June 1973 in London at the initiative of Henry Benson, Baron Benson, Sir Henry Benson, former president of the Institute of Chartered Accountants in England and Wales. The IASC w ...
(IASC), on March 1, 2001. This was the culmination of a restructuring based on the recommendations of the report ''Recommendations on Shaping IASC for the Future''. The IASB forms part of the three-tier structure employed by the IFRS Foundation and is responsible for setting the IFRS Standards and related technical activities. The IASB is overseen by the Trustees of the IFRS Foundation, responsible for the organisation's governance, the appointment of IASB members and funding. The IFRS Foundation is publicly accountable to a Monitoring Board of capital market authorities.


Members

The IASB originally had 14 full-time Board members, each with one vote. They are selected as a group of experts with a mix of experience of standard-setting, preparing and using accounts, market/financial regulation and academic work as well as from diverse geographical backgrounds. At their January 2009 meeting, the Trustees of the Foundation concluded the first part of the second Constitution Review, announcing the creation of a Monitoring Board and the expansion of the IASB to 16 members and giving more consideration to the geographical composition of the IASB. After the Trustees’ Review of Structure and Effectiveness in 2015, the number of members were in 2016 again set to 14 members. The IFRS Interpretations Committee has 15 members. It is the IASB’s interpretative body and its brief is to provide timely guidance on application issues that arise in practice. A unanimous vote is not necessary in order for the publication of a Standard, exposure draft, or final "IFRIC" Interpretation. The Board's 2016 Constitution states that the publication of an Exposure Draft, or an IFRS Standard (including an IAS Standard or an IFRIC Interpretation of the Interpretations Committee) shall require approval by eight members of the Board, if there are 13 members or fewer, or by nine members if there are 14 members. Other decisions of the Board, including the publication of a Discussion Paper, shall require a simple majority of the members of the Board present at a meeting that is attended by at least 60 per cent of the members of the Board, in person or by telecommunications. As of November 2020, the members included: *
Hans Hoogervorst Johannes Franciscus "Hans" Hoogervorst (born 19 April 1956) is a retired Dutch politician of the People's Party for Freedom and Democracy (VVD) and economist. He is the chairman of the International Accounting Standards Board The International ...

Hans Hoogervorst
(Chair), Netherlands, former
Minister of Health A health minister is the member of a country's government A government is the system or group of people governing an organized community, generally a state State may refer to: Arts, entertainment, and media Literature * ''State Magaz ...
,
Minister of Finance A finance minister is an executive or cabinet position in charge of one or more of government finances, economic policy and financial regulation. A finance minister's portfolio Portfolio may refer to: Objects * Portfolio (briefcase), a ty ...
*Sue Lloyd (Vice-chair) *Nick Anderson, UK,
Janus Henderson Janus Henderson is a British global asset management group headquartered in the City of London The City of London is a City status in the United Kingdom, city, Ceremonial counties of England, ceremonial county and local government district th ...
Investor *Tadeu Cendon, Brazil *Martin Edelmann, Germany, former Group Reporting at
Deutsche Bank AG Deutsche Bank AG () is a German multinational Investment banking, investment bank and financial services company headquartered in Frankfurt, Frankfurt, Germany, and dual-listed on the Frankfurt Stock Exchange and the New York Stock Exchange. Th ...
*Françoise Flores, France *Zach Gast, US *Jianqiao Lu, China *Bruce Mackenzie, South Africa *Tom Scott, Canada *Rika Suzuki, Japan *Ann Tarca, Australia *Mary Tokar, US Former IASB members include James J. Leisenring, Robert P. Garnett (formerly
Anglo American PLC Anglo American plc is a British listed Multinational corporation, multinational mining company with headquarters in London, Johannesburg , South Africa. It is the world's largest producer of platinum, with around 40% of world output, as well as be ...
), Mary Barth, David Tweedie, Gilbert Gélard, Warren McGregor, and Tatsumi Yamada (formerly
PriceWaterhouseCoopers PricewaterhouseCoopers is a multinational Multinational may refer to: * Multinational corporation, a corporate organization operating in multiple countries * Multinational force, a military body from multiple countries * Multinational state, a ...

PriceWaterhouseCoopers
and
KPMG KPMG International Limited (or simply KPMG) is a British-Dutch multinational Multinational may refer to: * Multinational corporation, a corporate organization operating in multiple countries * Multinational force, a military body from multiple ...

KPMG
).


Chairmen

On July 1, 2011,
Hans Hoogervorst Johannes Franciscus "Hans" Hoogervorst (born 19 April 1956) is a retired Dutch politician of the People's Party for Freedom and Democracy (VVD) and economist. He is the chairman of the International Accounting Standards Board The International ...

Hans Hoogervorst
succeeded David Tweedie as Chairman. David Tweedie had served as the Board's Chairman since its creation in 2001.


Due process

The IASB Due Process Handbook describes the consultative arrangements of the IASB, and includes information on how standards are developed.


Funding

The IFRS Foundation raises funds for the operation of the IASB. The majority of the funding is voluntary contributions from jurisdictions that have put in place national financing regimes. The contribution is normally a percentage of the total
gross domestic product Gross domestic product (GDP) is a monetary Image:National-Debt-Gillray.jpeg, In a 1786 James Gillray caricature, the plentiful money bags handed to King George III are contrasted with the beggar whose legs and arms were amputated, in the ...
of all contributing jurisdictions. Additionally, part of the contributions comes from the biggest
accounting firm Accounting or Accountancy is the measurement, processing, and communication of financial and non financial information about economic entity, economic entities such as businesses and corporations. Accounting, which has been called the "language ...
s. In 2019, IFRS Foundation's revenue amounted to
GBP The pound sterling (symbol: £; ISO code: GBP), known in some contexts simply as the pound or sterling, is the official currency A currency, "in circulation", from la, currens, -entis, literally meaning "running" or "traversing" in the ...

GBP
31 million, of which GBP 20 million came from contributions and GBP 11 million came from self generated revenue from publications and related activities.


See also

*
Bank regulation Bank regulation is a form of government A government is the system or group of people governing an organized community, generally a state State may refer to: Arts, entertainment, and media Literature * ''State Magazine'', a monthl ...
*
Big Four accounting firms The Big Four is the nickname used to refer collectively to the four largest professional services network A professional is a member of a profession or any person who earns a living from a specified professional activity. The term also describe ...
*
BilMoG The German Bilanzrechtsmodernisierungsgesetz (short: BilMoG) is a German accounting law reform act usually first applied in fiscal year 2010. It emphasizes that the supervisory board A supervisory board or supervisory committee, often called '' ...
, the German Accounting Law Reform Act, modernises the German commercial accounting standards *
International Financial Reporting Standards International Financial Reporting Standards, commonly called IFRS, are accounting standard Publicly traded companies typically are subject to the most rigorous standards. Small and midsized businesses often follow more simplified standards, plus ...
*
Philosophy of accounting The philosophy of accounting is the conceptual framework for the professional preparation and auditing of financial statement Financial statements (or financial reports) are formal records of the financial activities and position of a business, ...


References


External links

* IASB ;National accounting standard-setting bodies * ICA
The Institute of Chartered Accountants of Pakistan
* ASB
Accounting Standards Board of Japan
* ASB-S
Accounting Standards Board
- South Africa * ASR
Accounting Standards Review Board
- NZ * FASA
Federal Accounting Standards Advisory Board
- US * FAS
Financial Accounting Standards Board
- US * MAS
Malaysian Accounting Standards Board
* IPSAS
International Public Sector Accounting Standards Board
- US/International * Iran IAS
Iranian accounting standards board
* SAS
Singapore Accounting Standards Council
* KSR PAS
Polish Accounting Standards Board Komitet Standardów Rachunkowości
;Discussions
IFRS List - The online community about IFRS/IAS and Auditing

CFO.com's FASB-IASB news archive

FASB and IASB: Dependence Despite Independence
(Social Science Research Network paper) {{authority control International accounting organizations Financial regulation Standards organizations in the United States Organizations established in 2001