Definition
The International Financial Reporting Standards Advisory Council (IFRS AC) is a formal advisory body to the International Accounting Standards Board (IASB) and the Trustees of the IFRS Foundation. It provides a platform for a diverse group of stakeholders to offer strategic advice on the development and implementation of IFRS. The Council comprises members from various professional backgrounds including accountancy, investment, and regulation, ensuring comprehensive stakeholder representation.
Examples
- Stakeholder Input: The IFRS AC brings together insights from investors, regulators, and business leaders to ensure the IASB considers diverse perspectives in its standard-setting process.
- Strategic Advice: During a meeting, the IFRS AC might advise the IASB on improving the implementation guidance for a new standard on revenue recognition.
- Working Groups: The council can establish working groups focusing on specific sectors to address unique challenges, such as the financial sector’s concerns over a particular accounting standard.
Frequently Asked Questions
What is the main function of the IFRS AC?
The primary function of the IFRS AC is to offer strategic advice to the IASB and the Trustees of the IFRS Foundation regarding the priorities and strategic direction for the development and implementation of IFRS.
Who are the members of the IFRS AC?
The members of the IFRS AC come from a wide range of backgrounds, including accountancy, investment, regulation, industry, and academia. This diverse composition ensures that multiple perspectives are represented.
How often does the IFRS AC meet?
The IFRS AC typically meets at least twice a year. These meetings facilitate in-depth discussions on strategic matters relevant to the development and implementation of IFRS.
How does the IFRS AC influence the IASB’s work?
The IFRS AC provides advice and feedback that the IASB considers in its standard-setting process. The Council’s insights can influence the board’s priorities, project timetables, and the focus of specific IFRS initiatives.
Are the meetings of the IFRS AC open to the public?
IFRS AC meetings are generally not open to the public; however, summaries and minutes of the meetings are often published on the IFRS Foundation’s website to maintain transparency.
Related Terms
International Financial Reporting Standards (IFRS)
A set of global accounting standards developed by the IASB, aimed at making financial statements consistent, comparable, and understandable across international boundaries.
International Accounting Standards Board (IASB)
An independent body responsible for developing IFRS and promoting their use worldwide.
IFRS Foundation
The organization overseeing the IASB and responsible for the governance and funding arrangements of the IFRS standard-setting process.
Generally Accepted Accounting Principles (GAAP)
A common set of accounting principles, standards, and procedures used in the United States, which contrasts with IFRS used internationally.
Financial Accounting Standards Board (FASB)
The organization responsible for establishing and improving GAAP in the United States.
Online References
- IFRS Foundation - IFRS Advisory Council
- International Accounting Standards Board (IASB)
- IFRS Standards
Suggested Books for Further Studies
- International Financial Reporting Standards (IFRS) Workbook and Guide by Abbas A. Mirza, Graham J. Holt, and Liesel Knorr
- IFRS Made Easy by Steven M. Bragg
- Wiley IFRS 2021: Interpretation and Application of IFRS Standards by PKF International Ltd
Accounting Basics: “IFRS AC” Fundamentals Quiz
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