Research Paper

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International Financial Reporting Standards: Roles |

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The International Accounting Standards Board is responsible for setting up, promoting and developing the standards set up by the International Financial Reporting Standards board. The organization's mission is to set accounting standards that best serve the public interest and create internationally-acceptable guidelines for financial statement reporting. The International Accounting Standards Board was launched in 2001 to replace the International Accounting Standards Committee (IASC). The Board is responsible for developing, implementing and monitoring the application of nationally and internationally-approved accounting standards and working with the International Accounting Standards Committee Foundation to shape the future of accounting. The IASB is a privately-funded organization that assumed the responsibilities of setting standards in accounting from the International Accounting Standards Committee in 2001. It is an independent organization but is part of the International Accounting Standards Committee Foundation that provides the framework for interpreting and overseeing the standards. The standards are developed with a six-stage due process system that involves setting an agenda, planning the project, developing and publishing discussion papers, exposure drafts and standard documentation, and coordinating meetings after the standard is issued.

The IASB works with the IASC Foundation Trustees to raise funds for the organization but is solely responsible for managing and developing the International Financial Reporting Standards (IFRS). The IFRS are the interpretations, processes, standards and procedures that establish the general rules of accounting on a global scale. The International Financial Reporting Standards are comprised of four components: all standards issued after 2001; the International Accounting Standards (IAS) issued before 2001; the Interpretations from the...