International Corporate Reporting Chapter 6

Transcript:International Corporate Reporting Chapter 6:
International Corporate Reporting Chapter 6 Developing IFRS Standards IFRS Foundation Oversees IASB. Independent body 22 trustees. Mix of trustees reflects geographical spread of world’s capital markets. Raises funds for standard setting process. Monitoring Board Demand to enhance public accountability in countries where regulators enforce IFRS. Formal link from trustees to public authorities EC, IOSCO (including IOSCO Growth and Emerging Markets Committee), Brazil, Korea, China, US, plus observer from Basel Committee. Participates in appointing trustees. International Accounting Standards Board IASB Formed in 2001, replacing predecessor IASC 14 members appointed by IFRS Foundation trustees. Up to 3 may be employed part-time, remainder must commit all working time to IASB. 5-year term, renewable for a further five. Best available combination of technical skills, and experience of international business & market conditions. Geographical spread. Meets in public, agenda papers on website. IASB membership at July 2019 9 male and 5 female Employment sector background of members (immediately prior to their appointment) Qualifications Involvement with accounting standard setting prior to appointment to IASB board membership International Accounting Standards Board Membership of IASB Interpretations Committee 3 Advisory role with IASB 3 National accounting standard bodies Membership of a national accounting board 7 Advisory role with a national accountancy board 4 (Five members are included in two of the categories of involvement. Two members are not included in any categories.) Objectives of IASB to develop in the public interest, a single set of high quality, understandable and enforceable global accounting standards …. to help participants in the world’s capital markets and other users make economic decisions; to promote the use and rigorous application of those standards; and to bring about convergence of national accounting standards and IAS/ IFRS to high quality solutions. Other support for IASB IFRS Interpretations Committee Responds to questions about interpretations of standards Publishes IFRIC Interpretation as guidance IFRS Advisory Council Forum for wider participation Meets twice per year Formal advisory body to IASB and trustees Financing the IASB Annual report 2018 54% Voluntary contributions from jurisdictions. 17% Voluntary contributions from international accounting firms. 29% self-generated from sales of subscriptions, publications and licensing. Challenge to balance transparency, fairness and confidentiality Contributors listed in annual report Due process 1. Setting the agenda. 2. Project planning. 3. Development and publication of a discussion paper. 4. Development and publication of an exposure draft. 5. Development and publication of an IFRS Standard. 6. Regular review and educational activities