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Chapter
1
/ 1ntro to International Financial Reporting Standards
5
5.0.2 The name of the organization that comprises both the IASB and its Tru stees is the
International Acco unting Standards Committee Foundation ("the IASC Found ation").
The
objec tives of the IASC Foundation, as stated in its Constitution, are
(a) To develop, in the publ ic interes t, a single set of high-qu ality, understandable, and enforce –
able global accounting standards that require high-qu ality, transparent , and comparable in–
formation in financial statements and other financia l reporting to help participants in the
various capital markets of the world and other users of the information to make economic
decisions;
(b) To promote the use and rigoro us applicat ion of those standards; and
(c) In fulfilling the objec tives associated with (a) and (b), to take account of, as appropriate,
the special needs of small and medium-sized entities and emerging eco nomies; and
(d) To bring about converge nce of national accounting standards and International Financia l
Report ing Standards to high-qu ality solutions.
5.0.3 At its first meeting in 200 I, IASB adopted all outstanding lAS issued by the IASC as its
own Standards. Tho se lAS continue to be in force to the extent they are not amended or withdrawn
by the IASB. New Standards issued by IASB are known as IFRS . When referr ing collectively to
IFRS , that term includes both lAS and IFRS .
Lis t
of IFRS
IFRS I,
First-time Adoption of International Financial Reporting Standards
IFRS 2,
Share-Based Payment
IFRS 3,
Business Combinations
IFRS 4,
Insurance Contracts
IFRS 5,
Noncurrent Assets Held f or Sale and Discontinued Operations
IFRS 6,
Explora tion for and Evaluation ofMineral Resources
IFRS 7,
Financial Instruments: Disclosures
IFRS 8,
Operating Segments
5.0 .4 One of the initial projects undertaken by IASB was to identify opportunities to improve the
existing set of Standards by adding guida nce and elim inating incons istencies and choices. The im–
proved Standards, adopted in 2003 , form part of IASB ' s so-ca lled stable platform of Standards for
use in 2005 when a significa nt number of countries around the world moved from national ac–
counting requ irements to IFRS, such as all the countries in the European Union.
5.0.5 In 2006, IASB announced that it would not require the application of any new IFRS or ma–
jor amendments to existing standards before 2009. That is, IASB is continuing to issue new IFRS
and amendments, but those will not come into force before 2009. Th is provides four years of
stability in the IFRS platform and provides a target date for adoption of IFRS for countries that
have yet to adopt IFRS . The stable platform does not apply to new Interpretations, which may
have effective dates before 2009.
5.1 Stru cture and Governance
5.1.1
Trus tees
The governance of IASB rests with the Tru stees of the IASC Found ation (the "IASC Foundation
Tru stees" or, simply, the "Tru stees" ). The Tru stees have no involvement in IASB ' s standard–
setting activities. Instead, the Trustees are responsible for broad strategic issues, budget, and
operating procedures, as well as for appoint ing the members of IASB.
5.1.2
The Board
The Board is responsible for all standard-se tting activities, includin g the development and adoption
of IFRS . The Board has 14 members from around the world who are selected by the Tru stees
based on techn ical skills and relevant business and market experience. The Board, which usuall y
meets once a month, has 12 full-time members and 2 part-time members. The Board members are