What is the role of the IASB? (Section 7.2.2)

Data From Section 7.2.2:

The International Accounting Standards Board (IASB) is an independent body that sets International Financial Reporting Standards (IFRS). It was formed in 2000 as the successor to the International Accounting Standard Committee (IASC) which had been setting International Accounting Standards (IAS) since 1973. These IAS have been adopted by the IASB and will gradually be revised as IFRS. In the meantime the description ‘IFRS’ is used as a collective name for all forms of international accounting standard, whatever the precise title of the standard.

The IASB’s objective is to bring about convergence of national accounting standards and international accounting standards to high-quality solutions. This will help participants in the world’s capital markets and other users to make economic decisions.

There are many similarities between the UK accounting standards and the IASB Standards. There are also some differences where the UK standard setter believes a particular approach is justified, or where historical developments have a strong influence. The UK Accounting Standards Board works on projects with the IASB, as do other countries’ standard setting bodies, all seeking to develop international convergence.