Chapter 4 - regulatory environment Flashcards
What does GAAP entail?
Encompasses the conventions, rules and procedures necessary to define accepted accounting practice
What affects the regulatory environment?
- National company law
- EU directives
- Security exchange rules
When was the IFRS foundation established?
March 2001
What are the trustees of the IFRS responsible for?
- Appointing board members
- Annual review of strategy
- Approve annual budget
- Review broad strategies
- Promote the work of the board
- Monitor board operating proceudres
How long are IFRS board members appointed for?
5 years, renewable once
How many members does the IFRS advisory council have?
30 members
Who appoints the members of the IFRS advisory council?
Trustees
Renewable term of 3 years
Meet 3 times a year
What are the objectives of the IFRS advisory council?
- Give advice to the board on agenda decisions
- Inform board of the views of the council
- Give other advice to board/trustees
What does the IFRS interpretations committee do?
Assist the board by reviewing accounting issues likely to receive unacceptable treatment in absence of authoritative guidance
When was the IFRS interpretations committee founded?
2002
What are the 2 main responsibilities of the IFRS interpretations committee?
- Review new financial reporting issues not specifically addressed in the IFRSs
- Clarify issues where unsatisfactory interpretations have developed
What is the IOSCO?
Representative body of the world’s securities markets regulators
What is the IIRC?
Global coalition of regulators, investors, companies etc to promote communication about value creation
What does integrated reporting promote?
Reporting on an entity’s ability to create value
