27. Regulatory Framework

Question 1

What is the International Accounting Reporting Standards (IFRS)?

Answer 1

A set of rules that should be applied to accounting.

It is not a legal requirement by itself, but many countries have adapted their laws to be consistent with it.

Question 2

What is the International Financial Reporting Standards Foundation?

Answer 2

The supervisory body that develops and promotes the accounting standards.

Question 3

What is the International Accounting Standards Board (IASB)?

Answer 3

The entity responsible for issuing the IFRS’s.

Question 4

What is the IFRS Advisory Council (IAC)?

Answer 4

The body that consults with interested parties and gives advice to the IASB.

Question 5

What is the International Financial Reporting Interpretations Committee (IFRIC

Answer 5

An entity that issues guidance in the interpretation of IFRS’s

Question 6

What is an exposure draft?

Answer 6

A proposed IFRS which is published for public comment.

Question 7

What is the Conceptual Framework?

Answer 7

A framework setting out the concepts underlying the preparation and presentation of financial statements.

IFRS’s are developed within this framework.