The International Accounting Standards Board (IASB) is organised under an independent organisation called the International Accounting Standards Committee Foundation (IASC Foundation). IASC Foundation is a private sector body, which receives funding in the form of donations from banks and accounting firms. IASC Foundation is a not-for-profit organisation who acts in the public’s interest.
Components of the restructured ISAB include the Monitoring Board, IASC Foundation, IASB, International Financial Reporting Interpretation Committee (IFRIC), Standards Advisory Council (SAC) and working groups. (Refer to figure 1).
IASC Foundation 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 IASC Foundation 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. The trustees have to write an annual report for the monitoring board. However, monitoring board has the right of authority to participate in the process of appointing and approving trustees as well as giving advice to the trustees about fulfilment of their responsibilities.
IASC Foundation manages the work of IASB and has responsibility of fundraising activities, which supports the operations of IASB. IASC Foundation develops a high quality IFRS which are globally accepted. IASC Foundation are policy makers which are responsible for issuing policies. IASC Foundation over looks what the IASB does but does not inte...
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...ASB’s agenda and work programme. SAC provides a forum for participation of individuals who have an interest in financial reporting. This is comprised of a wide range of individuals from financial analyst to regulators who are affected by the interest of IASB’s work. SAC are allowed to share their views on the standard-setting project. On the other hand they are allowed to provide advice on projects on application and implementation matters which relate to existing standards which the IFRIC develop.
Working Groups give IASB further access to practical experience and expertise. IASB creates working groups for their major projects. The working group is an advisory body for the IASC Foundation. IASB appoints the members for the working groups. After the board has issued a discussion document the working groups will help the IASB understand and analyse the comments.
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