1. Chapter 5 Environment of International Research

2. IASB
Role is to issue high-quality, enforceable, global financial reporting standards
Several entities/procedures involved in standard setting:
The Monitoring Board
International Financial Reporting Standards Foundation (IFRS Foundation)
IFRS Foundation Constitution (The Constitution)
IFRS Advisory Council (The Advisory Council)
The Board itself (IASB)
The Interpretations Committee (IFRIC)
IFRS for SMEs

3. Other Regional and National Standard-Setting Bodies and Influential Organizations
DPOC - Due Process Oversight Committee
Oversees the IASB and IFRIC due process procedures
EFRAG – European Financial Reporting Advisory Group
“Provides advice to European commission on all IFRS to the EU”
20 finance ministers and central bank governors representing 19 countries plus the EU
IFAC – International Federation of Accountants
Global organization of international accountants
IOSCO – International Organization of Securities Commissions
Develops, implements ,and promotes adherence to internationally recognized standards

4. IASB Authorities Most IFRS contain the following: An introduction
Table of contents
Objective
Scope
Definitions
Actual standard
List of voting IASB members
Basis for qualifying or dissenting votes
Appendices

5. IASB Due Process Six stages Input from working groups
Plan the research project
Develop and publish a discussion paper (optional)
Develop and publish an exposure draft (ED)
Draft an IFRS or publish a second ED
Hold meetings with constituents with respect to implementation guidance

6. IFRIC Due Process IFRICs clarify IFRS or prevent diverging viewpoints
Seven stage due process
Study to identify the issue
Agenda is set
IFRIC meetings and voting occurs
Draft interpretation is developed
IASB is consulted
Comment period allowed
Interpretation is approved by IFRIC and IASB

7. Conceptual Framework
Establishes objectives and concepts for development of accounting standards
Board uses framework for developing future standards
Preparers and researchers use the framework in the absence of published standards
Framework (objectives, assumptions, qualitative characteristics, elements, capital maintenance)

8. IFRS Funding and Regulation
Funding to the IASC Foundation is mostly voluntary
A levy system has been introduced into several countries
Local regulations govern the preparation and issuance of financial statements
IASB does not have authority to require compliance, however there are committees that examine compliance with IFRS.
The EU ensure consistency through Europeans Enforcers Coordination Sessions (EECS) and European Securities Committee (ESC)
IOSCO regulates international markets through its working committees
The SEC also examines cross-border regulatory compliance

9. IFRS Research Hierarchy
All pronouncements have same authority, but there is a hierarchy presented in IAS No. 8 that is useful to the researcher:
Apply specific IFRSs and if they do not apply, then
Apply other IFRSs that involve similar or related issues
Apply the IFRS framework
Apply pronouncements of other standard setting bodies.

10. e-IFRS Available in several languages
The electronic version is a replica of the bound manual released by the IASB.
The IASC Foundation Constitution
The Framework
preface to IFRS
IFRSs
IAS
IFRICS
SIC
Glossary
Due process handbook for IASB and IFRIC

11. Searching in e-IFRS Glossary
Terms referenced to each standard and paragraph number
Directly go to standard of interest by perusing list
Advanced search function can be refined by:
Volume, standard, issue date, word stems, exact phrases, and connectors.