I n t e r a c t I v e t e X t foundations in Accountancy/ acca financial accounting (ffa/FA) bpp learning Media is an acca approved Content Provider

PART A: THE CONTEXT AND PURPOSE OF FINANCIAL REPORTING 

 

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2.1 The IFRS Foundation  

The IFRS Foundation (formally called the International Accounting Standards Committee Foundation or 

IASCF) is a not for profit, private sector body that oversees the IASB.  

The objectives of the IFRS Foundation, summarised from its document IFRS Foundation Constitution, 

2013 are to: 



 

Develop a single set of high quality, understandable, enforceable and globally accepted IFRSs 

through its standard-setting body, the IASB;  



 

Promote the use and rigorous application of those standards; 



 

Take account of the financial reporting needs of emerging economies and small and medium-

sized entities (SMEs); and 



 

Bring about convergence of national accounting standards and IFRSs to high quality solutions. 

 

 

(para. 2) 

At the time of writing, the IFRS Foundation Constitution has been reviewed for proposed amendments, 

but these are not yet effective. 

As at January 2017, the IFRS Foundation is made up of 20 named trustees, who essentially monitor 

and fund the IASB, the IFRS Advisory Council and the IFRS Interpretations Committee. The Trustees are 

appointed from a variety of geographical and functional backgrounds. 

2.1.1 IFRS Advisory Council  

The IFRS Advisory Council (formerly called the Standards Advisory Council or SAC) is essentially a forum 

used by the IASB to consult with the outside world. It consults with national standard-setters, 

academics, user groups and a host of other interested parties to advise the IASB on a range of issues, 

from the IASB's work programme for developing new IFRSs to giving practical advice on the 

implementation of particular standards. 

The IFRS Advisory Council meets the IASB at least three times a year and puts forward the views of its 

members on current standard-setting projects. 

2.1.2 IFRS Interpretations Committee  

The IFRS Interpretations Committee (formerly called the International Financial Reporting Interpretations 

Committee or IFRIC) was set up in March 2002 and provides guidance on specific practical issues in 

the interpretation of IFRSs. Note that despite the name change, interpretations issued by the IFRS 

Interpretations Committee are still known as IFRIC Interpretations. In your exam, you may see the IFRS 

Interpretations Committee referred to as the IFRS IC.  

The IFRS Interpretations Committee has two main responsibilities: 

 

To review, on a timely basis, newly identified financial reporting issues not specifically addressed 

in IFRSs 

 

To clarify issues where unsatisfactory or conflicting interpretations have developed, or seem likely 

to develop in the absence of authoritative guidance, with a view to reaching a consensus on the 

appropriate treatment 

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CHAPTER 2  

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  THE REGULATORY FRAMEWORK