15. What is the International Accounting Standards Board(IASB), and what are its objectives?
Question
- What is the International Accounting Standards Board(IASB), and what are its objectives?
Solution
The International Accounting Standards Board (IASB) is an independent, private-sector body that develops and approves International Financial Reporting Standards (IFRSs). The IASB operates under the oversight of the IFRS Foundation. The IASB was formed in 2001 to replace the International Accounting Standards Committee (IASC).
The IASB has the following objectives:
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To develop, in the public interest, a single set of high quality, understandable, enforceable and globally accepted financial reporting standards based upon clearly articulated principles.
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To promote the use and rigorous application of those standards.
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In fulfilling the above objectives, to take account of, as appropriate, the special needs of small and medium-sized entities and emerging economies.
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To promote and facilitate the adoption of International Financial Reporting Standards (IFRSs), being the standards and interpretations issued by the IASB, through the convergence of national accounting standards and IFRSs.
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