Chapter 2
International Financial Reporting: Institutional Framework and Standards
Glossary
Discussion Paper (DP)
Sometimes the first step in the standard setting process. A discussion paper is an initial document which highlights the issues and potential treatments for an accounting issue. It is prepared by the IASB and distributed for public consultation to various interested parties.
Exposure Draft (ED)
A draft of the proposed standard. This document will contain feedback received from the Discussion Paper process. The exposure draft is reissued to interested parties and the general public for further comment.
Fair value
The amount that an entity would expect to receive for an asset in an arm’s length transaction between two unconnected parties.
Financial Accounting Standards Board (FASB)
The board that prepares and issues US financial accounting standards of recommended accounting treatments and disclosures for accounting transactions.
International Accounting Standard (IAS)
Publications issued by the IASB (formerly the IASC) detailing the recommended standard accounting treatment and disclosures for specific accounting transactions/elements.
International Accounting Standards Board (IASB)
An independent international standard-setting board, appointed and overseen by a geographically and professionally diverse group of Trustees (IFRS Foundation) that are accountable to the Monitoring Board of Public and Capital Market Authorities. The ISAB adopted the IASC’s IAS and issues international financial reporting standards (IFRS).
International Accounting Standards Committee (IASC)
Predecessor to the IASB. The IASC was an international accounting standard setting body which operated from 1973 to 2001. It issued the International Accounting Standards (IAS). It was governed by representatives from some of its member countries.
International Financial Reporting Standard (IFRS)
These are international standards that are issued by the IASB on a variety of issues (accounting treatments, measurement and recognition) that impact on financial reporting statements.
IFRS Foundation Support Operations
Aims to promote and support the worldwide use of IFRS, the IFRS Foundation and a number of support initiatives (such as XBRL reporting).
IFRS Advisory Council (IFRSAC)
A forum for the IASB to consult a wide range of representatives from user groups, preparers, financial analysts, academics, auditors, regulators and professional accounting bodies that are affected by and interested in the IASB’s work. This body replaced the Standards Advisory Council (SAC) on 1st March 2010.
IFRS Foundation Trustees
The legal entity under which the IASB operates. This is the parent company. It was formerly known as the International Accounting Standards Committee Foundation (IASCF)
IFRS Interpretations Committee
The interpretive body of the IFRS Foundation Trustees. This body replaced the International Financial Reporting Interpretations Committee on 1 March 2010. They issue guidance on newly identified financial reporting issues not specifically dealt with in IFRSs; and issues where unsatisfactory or conflicting interpretations have developed, or seem likely to develop in the absence of authoritative guidance.
Monitoring Board of Public and Capital Market Authorities
The IFRS Foundation Trustees are accountable to the Monitoring Board. The Board promotes the work of the IFRS Foundation Trustees and appoints the Trustees.
SME Implementation Group (SMEIG)
Set up by the IASB to support the international adoption of IFRS for SMEs.
Statements of Financial Accounting Standards (SFAS)
Standards issued by the American standard setting body, the Financial Accounting Standards Board (FASB). These contain the recommended accounting treatment, in America, for a variety of transactions/elements.