The International Accounting Standards Board
Introduction
The International Accounting Standards Board (IASB) is an independent, standard-setting organisation of the International Financial Reporting Standards Foundation (IFRS Foundation).
This organisation was established on April 1, 2001, as a successor organisation to the International Accounting Standards Committee (IASC). It is in charge of establishing International Financial Reporting Standards as well as promoting the adoption and application of these standards worldwide. The IASB is headquartered in London, United Kingdom. The IASB’s standards are adopted by over 120 countries around the world.
Foundation
The International Accounting Standards Foundation was established on December 31, 2001, as a tax-exempt organisation in the state of Delaware, in the United States of America. Also on February 6, 2001, the International Financial Reporting Standards Foundation (IFRS Foundation) was established as a tax-exempt organisation in the state of Delaware.
The International Financial Reporting Standards Foundation (IFRS Foundation) is an independent, not-for-profit organisation. In the public interest, its principal purpose is to establish a single set of high-quality, easily comprehensible, enforceable, and internationally recognised International Financial Reporting Standards based on clearly stated principles, and to do so in a timely manner.
The International Financial Reporting Standards (IFRS) are created by the International Accounting Standards Board, which is an independent standard-setting organisation of the International Financial Reporting Foundation.
On March 1, 2001, the International Accounting Standards Board (IASB) took over the accounting standard-setting tasks from its predecessor body, the International Accounting Standards Committee. This was the conclusion of a reorganisation based on the suggestions of the study Recommendations on Shaping the IASC for the Future, which was released in December.
The International Accounting Standards Board (IASB) is one of three tiers of the IFRS Foundation’s three-tier organisation, and it is responsible for setting the International Accounting Standards and related technical operations. They are in charge of the organization’s governance, as well as the appointment of IASB members and financing.
The IASB is governed by the Trustees of the International Financial Reporting Foundation. The International Financial Reporting Standards Foundation is publicly responding to a Monitoring Board comprised of representatives from capital market regulators.
Members of IASB
The International Accounting Standards Board (IASB) initially consisted of 14 full-time Board members, each of whom had one vote. They are chosen from among a group of specialists who have a diverse range of experience, including standard-setting, creating and utilising financial statements, and academic work.
The Trustees of the Foundation completed the first part of the second Constitution Review at their meeting in January 2009, announcing the creation of a Monitoring Board and the expansion of the International Accounting Standards Board to 16 members, as well as giving greater consideration to the geographical composition of the IASB. The Interpretations Committee of the International Financial Reporting Standards (IFRS) has 14 members.
Its mandate is to give timely advice on difficulties that occur in the practice of medicine and dentistry.
For the publishing of a Standard, exposure draught, or final “IFRIC” Interpretation, there is no requirement for a unanimous majority.
The following are the current Board Members of IASB:
- Andreas Barckow (Chair), Germany
- Linda Mezon-Hutter (Vice-Chair), Switzerland
- Nick Anderson, United Kingdom
- Patrina Buchanan, United States
- Tadeu Cendon, Brazil
- Florian Esterer, Germany
- Zach Gast, United States
- Hagit Keren, Israel
- Jianqiao Lu, China
- Bruce Mackenzie, Canada
- Bertrand Perrin, France
- Rika Suzuki, Japan
- Ann Tarca, Australia
- Robert Uhl, Germany
The IASB board meets to deliberate and vote on proposed IFRS changes. The board also supervises the IASB staff, which is responsible for conducting research and drafting new standards.
Funding
The International Accounting Standards Board (IASB) Foundation provides donations to support the organization’s operations. The vast majority of contributions are from financial institutions and other businesses that utilise or have an interest in supporting international standards.
Conclusion
In general, the International Accounting Standards Board (IASB) is a highly esteemed institution that fulfils a significant function within the worldwide financial framework. The International Accounting Standards Board (IASB) contributes to the assurance of reliable financial information for global companies by actively developing and advocating for the implementation of robust international accounting standards. This commitment serves to facilitate the provision of accurate and trustworthy financial information to investors, creditors, and various other stakeholders throughout the globe.
