The IFRS Foundation oversees the activities of the International Accounting Standards Board (IASB) and the International Financial Reporting Interpretations Committee, and aims to develop globally accepted financial reporting standards.
Proportional consolidation is a method used in group accounts for subsidiaries that are not fully owned, including a proportionate share of each category of a joint venture in revenues, expenditures, assets, and liabilities line by line. This method contrasts with the equity method and has been a topic of much debate.
The principle that the reliability (faithful representation) of the financial information provided by a company should be open to confirmation, i.e., that an independent person with a reasonable knowledge of accounting should be able to look at the same data and reach broadly similar conclusions. The International Accounting Standards Board's Conceptual Framework for Financial Reporting recognizes verifiability as a qualitative characteristic that enhances the usefulness of financial information.
