Question

Summarize in a paragraph of 5 to 6 sentences the mission of the IFRS. (5 pts.)
What is the IASB, what is its vision and how many members does it have? Indicates the name of the current chairman. (5 pts.)
What are the two main functions of the IFRS Foundation? Explain briefly. (5 pts.)

Answer 1

A)

1) International Financial Reporting Standards (IFRS) set common rules so that financial statements can be consistent, transparent and comparable around the world. IFRS are issued by the International Accounting Standards Board (IASB). They specify how companies must maintain and report their accounts, defining types of transactions and other events with financial impact. IFRS were established to create a common accounting language, so that businesses and their financial statements can be consistent and reliable from company to company and country to country. Their work serves the public interest by fostering trust, growth and long term financial stability in the global economy.

2) The International Accounting Standards Board (IASB) is the independent, accounting standard setting body of the IFRS Foundation. The IASB was founded on April 1, 2001, as the successor to the Internatonal Acccounting Standards Committee (IASC).It is responsible for developing International Financial Reporting Standards (IFRS Standards), previously known as International Accounting Standards (IAS) and prompting the use and application of these standards.

The IASB 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 works as well as from diverse geographical bacgrounds.

3) The functions of IFRS is  to provide a global framework for how public companies prepare and disclose their Financial Statements. IFRS provides general guidance for the preperation of Financial Statements, rather than setting rules for industry specific reporting.

The IFRS Foundation also develops and maintains the IFRS Taxanomy. The IFRS Taxanomy consists of elements that can be used to tag disclosures in Financila Statements prepared using IFRS Standards, tagging makes information computer- readable and, therefore, more accessible to investors and other users of electronic company financial reports.