The Role Of The International Accounting Standards Board

809 Words 4 Pages
a) IASB stands for International Accounting Standards Board. The IASB is a standard-setting board whose main role is to ‘develop and approves ‘International Financial Reporting Standards’ so that all financial reports and financial statements globally are detailed and can be easily read by all users. With constant regulation and development, it ensures all business’ financial records are formatted the same and easy to transfer information to and from them. To become an IASB member isn’t an easy task. IASB members are appointed through an in-depth process undertaken by the trustees. The trustees have no say in any matters regarding standards, their only role is to govern the IASB.

The first part of the process is the advertisement of the vacant
…show more content…
To become an IASB member there is a great amount of responsibility and professionalism required so a lengthy process is essential to find the right person for the role. By using the above method to find a new member will benefit the IASB as it helps prevent un-experienced and unsuitable applicants applying by only advertising in relevant stakeholder groups and within the IASB itself. I also agree with the process of asking all trustees their opinion before appointing a new member. By asking all the trustees, it makes the selection impartial to higher positions making all the choices. The only problem with this method is that only the chair and vice-chair of IASB meet with the candidates before a decision is made even though everyone’s opinion is used. This could lead to uneducated choices and cause them to appoint someone who isn’t suited for the …show more content…
The first task is reviewing the agenda and seeing if an additional standard would be beneficial and not ineffective. This consists of the IASB taking into consideration whether it will be useful and understandable to all users and whether existing guidance already exists. Approval of adding items to the agenda is decided by a vote by all IASB members who attend the meeting. This is a public meeting and can be viewed by anyone. If the proposed standard is voted for in the meeting, it is then up to the IASB to decide whether or not to conduct the project alone or do the project with another standard-setter. The reason for joining up with another standard-setter is to help with the bigger projects by drafting in additional consultative groups for a greater range of practical experience and expertise. It is then up to the director of technical activities and the director of research to pick the team for the project. After the IASB has decided how to approach the proposed accounting standard the normal process is to develop and publish a discussion paper. This includes a description of the issue, the possible approaches of solving this issue an invitation to comment. However, this isn’t a necessity for the project to be successful. An exposure draft is the next document that is published. The exposure draft uses the

Related Documents