The International Accounting Standards Committee Foundation

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Recommended: Structure of international financial reporting standards in various countries

Question one: outline the structure of the International Accounting Standards Committee Foundation (IASC Foundation).

The purpose of this essay is to describe the structure of the IASC Foundation.

The International Accounting Standards Board (IASB) is organised under an independent organisation called the IASC Foundation. IASC Foundation is a not-for-profit organisation who acts in the public’s interest. Components of the restructured IASB include the Monitoring Board, IASC Foundation, IASB, International Financial Reporting Interpretation Committee (IFRIC), Standards Advisory Council (SAC) and working groups. (Refer to figure 1).

The monitoring board was formed in January 2009, to improve public accountability of the IASC Foundation whilst not deteriorating the standard setting process. The main purpose of the monitoring was to make a relationship between capital market authorities and the IASC Foundation, this was because capital market authorities can be effective in raising capital. Trustees have to write an annual report for the monitoring board. However, the monitoring board takes part in the process of appointing and approving as well as giving advice to the trustees about fulfilment of their responsibilities.

IASC Foundation manages the work of the IASB and has responsibility for fundraising activities. IASC Foundation develops a high quality International Financial Reporting Standards (IFRSs), which are globally accepted. The purpose of IASC Foundation is to make and issue policies. They overlook what the IASB does but do not interfere with the details of the standard-setting. However, the IASC Foundation trustees have the authority to terminate members who are not performing well.

IASB is responsible for the cr...

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...lle, A. (2008) International Financial Reporting: A practical guide. 1st edn. Harrow: Person.

Biography

Black, G. (2003) Students’ Guide to Accounting and Financial Reporting Standards. 9th edn. Harrow: Pearson.

Elliot, B. & Elliot, J. (2009) Financial accounting and reporting. 13th edn. Harrow: Pearson.

Financial Times (2006) Practical concerns emerge on conceptual issues. Available at: http://www.ft.com/cms/s/0/f98e6540-7aa7-11db-8838-0000779e2340.html [Accessed: 24th February, 2010]

IASB (2010) Access the unaccompanied IFRSs. Available at: http://www.iasb.org/IFRSs/IFRS.htm [Accessed: 24th February, 2010]

Latridis, N. & Joseph, L.N (2005) ‘A conceptual framework of accounting policy choice under SSAP 20’. Journal of Managerial Auditing. 20(7) pp. 763-778.

Wood, F. & Sangster, A. (1999) Business Accounting 1. 8th edn. London: Financial Times.

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