The IFRS® 

Foundation is a not-for-profit international organisation responsible

for developing a single set of high-quality global accounting standards, known as
IFRS Standards. 

Our mission is to develop standards that bring transparency, accountability and

efficiency to financial markets around the world. Our work serves the public
interest by fostering trust, growth and long-term financial stability in the
global economy.

International organisations responsible for the wellbeing of the global

economy support our work, including the G20, the Financial Stability Board and
the World Bank.

IFRS Standards are now required in more than 140 jurisdictions, with many others
permitting their use.

The IFRS® Foundation supports academia and professional accounting institutes with

equipping students to apply principle-based standards issued by the International
Accounting Standards Board (Board). More information about our resources for
academics is available here.

Because the IFRS Foundation is a relatively small organisation with limited

resources, we are unable to respond to enquiries from individual students.
However, we have compiled the following responses to frequently asked questions
we receive from students.

Frequently asked questions

Which countries have adopted IFRS Standards?

To assess progress towards our goal of a single set of global accounting
Standards, we are developing and posting profiles about the use of IFRS Standards
in individual jurisdictions. Each completed profile explains for a particular
jurisdiction, whether IFRS Standards:

 are required or permitted;

 apply to public companies only, or also to all or some private companies;
and
 are applied in consolidated financial statements only, or also in individual
company financial statements.
The completed profiles can be accessed here.

Analysis of the use of IFRS Standards around the world is available here.

Why do IFRS Standards matter?

We have created a short video (available in English and Spanish) explaining how
IFRS Standards help bring accountability, transparency and efficiency to capital
markets around the world. Click here to view the English language version of the
video. Para ver el vídeo en español, pulse aquí.

Why do countries adopt IFRS Standards?

Click here to visit the Case for Global Standards section of our website.

How does the Board develop Standards?

Click here to view a short video explaining our standard-setting process.

How can I access the IFRS Standards?

We provide no-cost access to the unaccompanied Standards published annually in
our Red Book. Select the Standard or Interpretation you wish to view here.

To access the Standards together with their accompanying documents, such as

Illustrative Examples and Bases for Conclusions, requires a subscription to
eIFRS; click here for details.

Could I have access to the comment letters on [name of project]?

All the comments that we receive are on public record and are posted on our
website unless the respondent has requested confidentiality. To access the
comments for:

 a document that is open for comment: select the relevant document here, then
click on the tab View the Comment Letters.
 a current project where the document is not open for comment: select the
relevant project here, click on the tab Consultation Feedback, select the
appropriate consultation document, then click on the tab View the Comment
Letters.
 a completed project (that has been moved to the new website): click here,
select the relevant project, click on the tab Consultation Feedback, click on
the appropriate consultation document, then click on the tab View the Comment
Letters.
 a completed project (that is accessible on our archive site): click here,
follow the link to the archive site, click on the project name in the left
hand column, then view comment letters from relevant project stages.
We are unable to provide analyses of the comments received beyond those already
publicly available on our website, such as in staff papers prepared for Board
meetings. In particular, we are unable to provide a detailed breakdown of
individual comment letters by respondent type or geographical origin.

Could you summarise the main features of [name of Standard, Exposure Draft or
Discussion Paper]?
A short summary of each of our issued Standards is available on the website.
Select the Standard you wish to view here.

A more comprehensive summary of the Standards can be found in IFRS—A Briefing for
Chief Executives, Audit Committees and Boards of Directors the latest version of
which can be purchased as a pdf for download or in hard copy from here.

For our more recently issued Standards we have also produced a Project
Summary or Project Summary and Feedback Statement. These can be found under
Education materials on the Supporting Implementation section of our website.
Select the relevant Standard here, eg IFRS 16 Leases, then select Education
Materials.

Educational material published during the lifecycle of a project includes project

overviews, snapshots, webinars and other supporting material; these materials can
be found in the relevant Project section of the website (new or archive) and
include summaries of consultation documents such as Discussion Papers and
Exposure Drafts. To select the relevant project, click here.
How did you deal with comments received on [name of Standard]?
Feedback statements are published for all major projects. A feedback statement
provides a high-level overview and summary of a major project. It explains how
the Board sought input and responded to feedback, and outlines the rationale for
decisions taken by the Board.

How do you use research in your analysis?

Click here for a video of IFRS Foundation staff members Peter Clark and April
Pitman describing the use of research in the Post-implementation Review of IFRS
8 Operating Segments.

I am embarking on a research project; can you suggest an area of research that

would be of help to the Board?
Good quality research can help the Board develop Standards for general purpose
financial reporting. To help increase the pool of relevant and timely research
prepared by independent researchers, the Board has developed a list of topics
that it is likely to find of interest over the next few years. The list can be
accessed here.

The IFRS Foundation is not able to provide support to individual students or

researchers.

Do you offer any discounts to students wishing to purchase your publications?

A 20 per cent discount is available on all eligible products to full-time
University students.
Please email with written documentation from your University confirming your
full-time student status and the duration of your course
to: publications@ifrs.org

Do you offer scholarships for degrees in Accountancy or PhD studies on relevant

topics or offer funding for research projects?
The Board encourages research on the topics covered by the Research Programme and
the Post-implementation Reviews. However, because the IFRS® Foundation is a not-
for-profit entity that is partially publicly-funded, we are unable to provide
funding for external research projects.

The following external sources offer funding for research relevant to the Board:

IAAER-KPMG

An ongoing joint IAAER-KPMG project to encourage and fund research to inform the
Board’s standard setting process has, so far, funded four rounds of five
proposals each. Those who receive research funding will also receive multiple
rounds of feedback from an advisory committee of established researchers and from
the Board and staff.

View additional information.

ICAS

The ICAS Research Centre provides funding for research. Applicants can apply to
undertake a project following an ICAS call for research or can apply under the
ICAS pro-active applications route. For further details please click here.

How can I test my knowledge of IFRS Standards?

The IFRS Foundation hosts a quiz that allows students and others to test their
knowledge of IFRS Standards and the work of the Board. Click here to access the
quiz.

How can I stay up to date on IFRS Standards?

Anyone can register to receive updates on technical projects by registering with
our website and using the Dashboard to select the projects they wish to follow.

The IFRS Foundation also posts updates

on LinkedIn, Facebook, Twitter and YouTube.

Why global accounting standards?

The G20 and other major international organisations, as well as very many
governments, business associations, investors and members of the worldwide
accountancy profession support the goal of a single set of high quality, global
accounting standards.

Why is this the case?

Global standards for global markets

Modern economies rely on cross-border transactions and the free flow of

international capital. More than a third of all financial transactions occur
across borders, and that number is expected to grow.

Investors seek diversification and investment opportunities across the world,

while companies raise capital, undertake transactions or have international
operations and subsidiaries in multiple countries.

In the past, such cross-border activities were complicated by different countries

maintaining their own sets of national accounting standards. This patchwork of
accounting requirements often added cost, complexity and ultimately risk both to
companies preparing financial statements and investors and others using those
financial statements to make economic decisions.

Applying national accounting standards meant amounts reported in financial

statements might be calculated on a different basis. Unpicking this complexity
involved studying the minutiae of national accounting standards, because even a
small difference in requirements could have a major impact on a company’s
reported financial performance and financial position—for example, a company may
recognise profits under one set of national accounting standards and losses under
another.

Benefits of IFRS Standards

IFRS Standards address this challenge by providing a high quality,

internationally recognised set of accounting standards that bring transparency,
accountability and efficiency to financial markets around the world.

IFRS Standards bring transparency by enhancing the international comparability

and quality of financial information, enabling investors and other market
participants to make informed economic decisions.

IFRS Standards strengthen accountability by reducing the information gap between

the providers of capital and the people to whom they have entrusted their money.
Our Standards provide information that is needed to hold management to account.
As a source of globally comparable information, IFRS Standards are also of vital
importance to regulators around the world.

And IFRS Standards contribute to economic efficiency by helping investors to

identify opportunities and risks across the world, thus improving capital
allocation. For businesses, the use of a single, trusted accounting language
lowers the cost of capital and reduces international reporting costs.

Experience of adopting jurisdictions

Changing to IFRS Standards does not come without cost and effort. The companies
reporting will generally need to change at least some of their systems and
practices; investors and others using financial statements need to analyse how
the information they are receiving has changed; and securities regulators and
accounting professionals need to change their procedures.

But academic research and studies by adopting jurisdictions provides overwhelming

evidence that the adoption of IFRS Standards has brought net benefits to capital
markets. 

The documented benefits include a lower cost of capital for some companies and
increased investment in jurisdictions adopting IFRS Standards. Some companies
also report benefits from being able to use IFRS Standards in their internal
reporting, improving their ability to compare operating units in different
jurisdictions, reducing the number of different reporting systems and having the
flexibility to move staff with IFRS experience around their organisation. 

In Japan, where use of IFRS Standards has been voluntary since 2010, a report by
the Japanese Financial Services Agency identified business efficiency, enhanced
comparability and better communications with international investors as the main
reasons why many Japanese companies had chosen to adopt IFRS Standards.

Progress towards global standards

IOSCO recognised the benefits of global Standards when, in the year 2000, it
recommended to its members that they allow IFRS Standards to be used on their
exchanges for cross-border offerings. 

Since that point, IFRS Standards have gone on to become the de facto global
language of financial reporting, used extensively across developed, emerging and
developing economies.

Our research shows that 144 jurisdictions now require the use of IFRS Standards
for all or most publicly listed companies, whilst a further 12 jurisdictions
permit its use. 

Visit our jurisdictional use of IFRS Standards page for more information on

individual jurisdictions.
Analysing the use of IFRS Standards

The links on the left-hand side of this page present an analysis of the use of
IFRS Standards around the world. That analysis is based on the 166 jurisdiction
profiles completed thus far by the IFRS Foundation.

 Analysis of the 166 profiles: Overall information that covers the commitment

to global accounting standards, commitment to IFRS Standards, extent of the
adoption of IFRS Standards (which companies? which financial statements?),
wording in the auditor's report, and modifications of the standards.

 Analysis of profiles for G20 member jurisdictions: The Group of Twenty

(informally, the G20) is the premier forum for international cooperation on
the most important issues on the global economic and financial agenda.

 Analysis of the profiles by GDP: The jurisdictions we have

profiled represent over 98% of the world’s GDP, and so provide an
accurate picture of global IFRS adoption.
 Analysis of the profiles by number of listed companies: Of the approximately
49,000 domestic listed companies on the 93 major securities exchanges in the
world, over 29,000 use IFRS Standards, and only three countries account for
almost every company yet to adopt IFRS Standards.

 Analysis of the use of the IFRS for SMEs Standard: Information on which
companies are required to adopt IFRS, and whether SMEs can also choose full
IFRS Standards or local standards.

Who we are

About us

The IFRS Foundation is a not-for-profit, public interest organisation established

to develop a single set of high-quality, understandable, enforceable and globally
accepted accounting standards—IFRS Standards—and to promote and facilitate
adoption of the standards.

IFRS Standards are set by the IFRS Foundation’s standard-setting body, the
International Accounting Standards Board.

Find out more about the structure of the IFRS Foundation and our consultative

bodies.

High-quality financial information is the lifeblood of capital markets

Accounting standards are a set of principles companies follow when they prepare

and publish their financial statements, providing a standardised way of
describing the company’s financial performance. Publicly accountable companies
(those listed on public stock exchanges) and financial institutions are legally
required to publish their financial reports in accordance with agreed accounting
standards.

Related information

 International Accounting Standards Board

 IFRS Interpretations Committee
 IFRS Foundation Trustees
 How we set IFRS Standards

Our mission statement

Our mission is to develop IFRS Standards that bring transparency, accountability
and efficiency to financial markets around the world. Our work serves the public
interest by fostering trust, growth and long-term financial stability in the
global economy.

 IFRS Standards bring transparency by enhancing the international

comparability and quality of financial information, enabling investors and
other market participants to make informed economic decisions.
 IFRS Standards strengthen accountability by reducing the information gap
between the providers of capital and the people to whom they have entrusted
their money. Our Standards provide information needed to hold management to
account. As a source of globally comparable information, IFRS Standards are
also of vital importance to regulators around the world.
IFRS Standards contribute to economic efficiency by helping investors to
identify opportunities and risks across the world, thus improving capital
allocation. Use of a single, trusted accounting language lowers the cost of
capital and reduces international reporting costs for businesses.
IFRS Standards are currently required in more than 140 jurisdictions and
permitted in many more.

This is a chronology of major moments in the history of the IFRS® Foundation and

the International Accounting Standards Board (Board).

We have focused on two elements—major organisational developments and issued IFRS

Standards, and the wider usage and commitment to IFRS Standards around the world.

IFRS Foundation and Board developments

 Progress towards global accounting standards

2018

Revised Conceptual Framework for Financial Reporting issued, setting out the

fundamental concepts of financial reporting that underpin IFRS Standards. The
revised Conceptual Framework replaces the 2010 Conceptual Framework.

The OHADA jurisdictions and Papua New Guinea announce requirement to use IFRS
Standards, which are now required or permitted in 144 of 166 assessed
jurisdictions. IFRS for SMEs Standard is required or permitted in 86
jurisdictions and under consideration in another 11 jurisdictions.

2017

IFRS 17 Insurance Contracts issued, representing a fundamental overhaul of

insurance accounting

IFRS Foundation launches new website

Saudi Arabia requires use of IFRS Standards from 2017

IFRS Foundation and World Bank deepen cooperation to support developing economies

in their use of reporting standards

Market capitalisation of companies listed on the Tokyo Stock Exchange that use or
are planning to use IFRS Standards now exceeds 30% of total market cap

2016

IFRS 16 Leases issued, requiring all leases to be reported on a company's balance

sheet as assets and liabilities

Trustees complete strategy review, leading to increased focus on implementation

support and digital reporting, reduction in board size to 14

The Board completes its second agenda consultation and establishes 'Better

Communication in Financial Reporting' as a priority until 2021

Indonesia reaffirms commitment to achieve full convergence with IFRS Standards

IFRS Foundation and IOSCO strengthen their relationship

IFRS Foundation and ESMA strengthen their relationship

2015

IFRS Foundation publishes a statement of its mission: to develop IFRS Standards

that bring transparency, accountability and efficiency to financial markets
around the world
The Board completes its first review of the IFRS for SMEs Standard, making
limited targeted improvements

China reaffirms its commitment to achieve full convergence with IFRS Standards

European Commission publishes a positive evaluation of 10 years of use of IFRS

Standards in Europe. Other evaluations reaching similar conclusions are published
in Canada, Korea and Australia

India introduces Indian Accounting Standards (Ind AS) based on IFRS Standards.
India jurisdiction profile available here.

2014

IFRS 9 Financial Instruments issued, completing response to the financial crisis

IFRS 15 Revenue from Contracts with Customers, a converged standard, issued

jointly with FASB

Charter sets out working relationships between the Board and the members of the
International Forum of Accounting Standard Setters

The IFRS Foundation publishes first annual Pocket Guide to IFRS Standards and

adoption

The Board launches Investors in Financial Reporting programme with support from

leading members of the global investment community

The IFRS Foundation and European Securities Markets Authority (ESMA) sign a joint
Statement of Protocols

2013

Accounting Standards Advisory Forum (ASAF) is established

The Board completes first post-implementation review of a major Standard

The Board introduces comprehensive 'effect analysis' as part of due process

review

The IFRS Foundation begins publication of jurisdictional profiles to chart

progress towards creating a single set of global accounting standards

IFRS Foundation and IOSCO establish protocols on IFRS Standards

Japan permits virtually all listed companies to use IFRS Standards: revised

Cabinet Ordinance available only in Japanese

2012

IFRS Foundation Trustees issue a press release about their completed strategy

review, setting out recommendations in four areas:

 the IFRS Foundation's mission, specifically the public interest served by

the Foundation’s work;
 governance;
 the process and procedures used by the Foundation and the IASB; and
 the organisation's financing
Monitoring Board completes governance review, proposes to expand membership and
increase openness

Role of Interpretations Committee is enhanced following Trustee review

IFRS Foundation opens Asia-Oceania regional office in Tokyo

The Board completes its first agenda consultation, introduces a research

programme

Pan African Federation of Accountants resolution urging its 39 member bodies to

adopt IFRS Standards and the IFRS for SMEs Standard

Argentina, Mexico and Russia all begin using IFRS Standards

US SEC issues final report on use of IFRS—no further steps proposed. IFRS

Foundation staff undertake an analysis of the report

2011

The Board issues three IFRS Standards on accounting for and disclosures about
interests in other entities

The Board and FASB issue converged fair value measurement and disclosure
requirements

The Board issues amendments to IAS 19 Employee Benefits to provide investors and

other users with a clear picture of an entity’s commitments resulting from
defined benefit plans

Trustees establish the IASB Emerging Economies Group, in response to G20 request

IASB and FASB issue converged offsetting disclosure requirements

IASB and FASB align presentation requirements for other comprehensive income

Canada begins using IFRS Standards

Nearly 80 jurisdictions have adopted the IFRS for SMEs® Standard, or announced

plans to do so
 2010

Hans Hoogervorst appointed as Chairman of the Board effective 1 July 2011

The Board revises IFRS 9 to add requirements related to the classification and
measurement of financial liabilities, including embedded derivatives and 'own
credit risk'

The Board and FASB complete the first phase of their joint project to develop an
improved conceptual framework

IFRS Foundation launches programme to consult more widely with investors

In an MOU with the IFRS Foundation, Brazil commits to adopting IFRS Standards

2009

IFRS Foundation Monitoring Board established, providing enhanced public

accountability

Trustees expand the Board to 16 members and introduce triennial public

consultation on the Board's agenda

The Board issues the IFRS for SMEs® Standard

The Board issues the chapters of IFRS 9 Financial Instruments relating

to classification and measurement of financial assets

Trustees restructure the IFRS Advisory Council to comprise representatives of

organisations, rather than personal appointments, with the goals of obtaining
views of a wider range of interested parties and giving greater authority to
views received

Report of the Financial Crisis Advisory Group to the IASB and FASB about
the standard-setting implications of the global financial crisis

G20 leaders support work of the Board, call for rapid move towards creating
global accounting standards

Japan approves an IFRS road map, permits some companies to voluntarily adopt IFRS
Standards

2008

The Board and the US Financial Accounting Standards Board form a Financial Crisis
Advisory Group to guide joint response to crisis

Malaysia and Mexico announce their intention to adopt IFRS Standards

 2007

The Board and Accounting Standards Board of Japan sign cooperation agreement

More than 100 countries now require or permit use of IFRS Standards

The United States SEC permits non-US companies to report in the US using IFRS
Standards, consults on use of IFRS Standards by US companies

Brazil, Canada, Chile, Israel and Korea establish timelines to adopt IFRS
Standards

2006

The Board and FASB accelerate convergence programme

The Board issues IFRS 8 Operating Segments, to reduce differences between IFRS

Standards and US GAAP

2005

Board issues IFRS 7 Financial Instruments: Disclosures, to improve disclosures

about financial instruments and capital

China adopts accounting standards substantially in line with IFRS Standards, with
the goal of full convergence

In Europe, 7,000 companies in 25 countries switch from national accounting

standards to IFRS Standards. Concurrently, Australia, Hong Kong, New Zealand,
South Africa, and others adopt IFRS Standards

IOSCO releases a statement on the development and use of International Financial

Reporting Standards in 2005

2004

The Board issues second Standard, IFRS 2 Share-based Payment, responding to

investors' concerns about omission of expenses arising from stock options and
similar transactions with employees

The Board completes other priority reforms to IFRS Standards by issuing IFRS 3-6

IASB launches project to develop a separate accounting framework for small and

medium-sized entities (SMEs)

The Board introduces live internet broadcast of its meetings

2003

The Board completes priority reforms to Standards inherited from IASC in

preparation for first-time adoption by major jurisdictions
The Board issues first Standard—IFRS 1 First-time Adoption of International
Financial Reporting Standards

The Board hosts the first of what will become annual meetings of world accounting
standard-setters

2002

The Board and the US Financial Accounting Standards Board (FASB) sign 'Norwalk

Agreement' to improve and converge IFRS Standards and US GAAP

Europe adopts a law requiring listed companies on regulated securities markets,

including banks and insurance companies, to prepare their consolidated financial
statements in accordance with IFRS Standards starting 2005. A press release is
issued

2001

The International Accounting Standards Board holds its first meeting, announces

initial technical agenda, adopts IASC Standards

2000

IFRS Foundation is established, with Paul Volcker appointed Chairman of the

Trustees, Sir David Tweedie as Chairman of the Board

IASC agrees to restructure itself into a full-time International Accounting

Standards Board, overseen by independent Trustees. A Strategy Working Party
report is released, as well as press releases on IASC restructure member
approval and a new constitution

IASC completes its standard-setting, and releases a

statement providing transition suggestions to a new Board

IOSCO recommends use of international accounting standards for cross-border

listings

1999

IASC opens its meetings to public observation

1998

G7 calls on IASC to finalise, by early 1999, a proposal for a full range of

internationally agreed accounting standards in order to strengthen the
international financial system

1996

IASC approves the formation of a Standing Interpretations Committee (SIC) to

prepare interpretations of International Accounting Standards
 1995

IOSCO commits to reviewing the core standards with the objective of endorsing

them for cross-border securities offerings

1994

IOSCO completes an initial review of International Accounting Standards in letter

to IASB

Chairman of IASC urges IOSCO to accept International Accounting Standards for use

in multinational securities offerings and foreign listings

1993

IASC completes its 'comparability and improvements project', revising ten

Standards, substantially reducing the range of accounting policy choices under
international standards, and paving the way for future assessment of the
Standards by IOSCO

1990

With the issuance of IAS 31 Financial Reporting of Interests in Joint Ventures,

IASC completes its initial comprehensive set of 31 International Accounting
Standards

IASC publishes Statement of Intent Comparability of Financial Statements,

indicating its intent to reduce the number of alternative accounting treatments
permitted under International Accounting Standards

1989

IASC publishes the Framework for the Preparation and Presentation of Financial

Statements—the first international 'conceptual framework'.

1973

Professional accounting bodies of Australia, Canada, France, Germany, Japan,

Mexico, Netherlands, United Kingdom/Ireland and the United States
form International Accounting Standards Committee (IASC) and agree to adopt
International Accounting Standards for cross-border listings

The Trustees of the Foundation are responsible for the organisation's funding.

They are grateful for the commitments made by the many jurisdictions, entities
and organisations around the world in support of the Foundation's work. Here is
our 2018 list of financial supporters.

The Foundation's Annual Report provides an overview of the past financial year's

activities, achievements and results, as well as looking ahead to the next set of
priorities.
Self-generated income

The Foundation’s licensing policy is independent of contributions. When using the

Foundation’s materials, different jurisdictions require different amounts of the
material and for different use (adoption, convergence, education).

Jurisdictions who pay a voluntary contribution also need to sign a license and
pay the licensing fee if they want to publish IFRS Standards or base their local
standards on IFRS Standards.

The annual fees for licenses, where IFRS Standards are used for adoption or
convergence, were set low so as not to create a barrier to adoption. These fees
are normally set in bands based on the jurisdictions’ GDP. Find out more
information in our adoption and copyright section.

Other self-generated income comes from licensing our intellectual property for

commercial use and from selling publications generated by the Foundation and the
International Accounting Standards Board, as well as our subscription services.
Find out more about our publications and subscriptions.

Funding in the future 

An appropriate financing regime for the Foundation is vital to ensure the

independence of its standard-setting process. Such a regime must enable the Board
members and Foundation staff to engage interested parties throughout the world in
the shaping of financial reporting standards and to undertake all other related
activities necessary to achieve the organisation's objectives.

The Trustees are continuing their work towards a global funding system with the
following features:

 a long-term commitment by jurisdictions;

 public sponsorship (either direct or implicit governmental or regulatory
support);
 flexibility;
 proportionally allocated contributions; and
 public accountability in the budget process.
These commitments ensure the independence of the Board, which enables the
Foundation to:

 create and maintain high-quality IFRS Standards;

 consult inclusively and comprehensively with stakeholders globally; and
 support the worldwide adoption of IFRS Standards in other ways.
That independence enables the creation and maintenance of high-quality IFRS
Standards through an inclusive, international consultation process, as well
as all other activities undertaken by the organisation to advance the worldwide
adoption of IFRS Standards.

The IFRS Foundation Constitution was originally approved by the members of the

IFRS Foundation's predecessor body, the International Accounting Standards
Committee (IASC), at a meeting in Edinburgh on 24 May 2000.

At its meeting in December 1999, the IASC had appointed a Nominating Committee to
select the first Trustees of the organisation. The Trustees took office in May
2000 as a result of the approval of the Constitution.

In execution of their duties under the Constitution, the Trustees formed the
International Accounting Standards Committee Foundation (IASCF) on 6 February
2001. In 2010 the IASCF changed its name to the IFRS Foundation.

Reflecting the Trustees' decision to create the International Financial Reporting

Interpretations Committee (IFRIC), now called the IFRS Interpretations Committee
(IFRS IC), following public consultation the Constitution was revised in March
2002.

The Trustees are required to review the Constitution every five years, in order
to ensure the IFRS Foundation remains fit for purpose.

Most recently, in October 2018, the Trustees approved a narrow-scope amendment to

the Foundation’s Constitution to extend the term of the Trustee Chair and Vice-
Chairs up to a maximum of nine years, taking into account any previous term
already served as Trustee, Vice-Chair or Chair, as the case may be. The Trustees
also approved an amendment to allow for the Trustee Chair to be appointed from
among the Trustees or to be recruited externally. This amendment to the
Constitution came into effect on 1 December 2018.

We follow a thorough, transparent and participatory due process when we issue an

IFRS Standard or an IFRIC Interpretation that helps companies better implement
our Standards. Our standard-setting entails:

 public Board meetings broadcast live from our London office;

 agenda papers that inform the Board's deliberations;
 discussion and decision summaries that are made available after meetings;
and
 comment letters received on our consultation documents.
All IFRS due-process documents are posted online. The full process is described
in detail in our Due Process Handbook.

Steps in the standard-setting process

Agenda consultation
Every five years, the Board conducts a comprehensive review and consultation to
define international standard-setting priorities and develop its project work
plan.

The Board can also add topics to its work plan if necessary between agenda
consultations. This can include topics following Post-implementation Reviews of
Standards; the IFRS Interpretations Committee may also request the Board review
an issue.

Research programme
We begin most projects with research—explore the issues, identify possible
solutions and decide whether standard-setting is required. Often, we set out our
ideas in a discussion paper and seek public comment.

If we find sufficient evidence that an accounting problem exists, the problem is

sufficiently important to warrant changing a Standard or issuing a new one and a
practical solution can be found, we begin standard-setting.

Standard-setting programme
If the Board decides to amend a Standard or issue a new one, we generally review
the research, including comments on the discussion paper, and propose amendments
or Standards to resolve issues identified through research and consultation.

Proposals for a new Standard or an amendment to a Standard are published in an

exposure draft for public consultation. To gather additional evidence, members of
the Board and IFRS Foundation technical staff consult with a range
of stakeholders from all over the world.

The Board analyses feedback and refines proposals before the new Standard, or an
amendment to a Standard, is issued.

Maintenance programme
Our work doesn’t stop once a Standard is issued. We also support implementation
of the Standards and we make sure we maintain them.

This process includes consulting on the implementation of a new or amended

Standard to identify any implementation problems that may need to be addressed.
If issues arise, the IFRS Interpretations Committee may decide to create an IFRIC
Interpretation of the Standard or recommend a narrow-scope amendment. Such
amendments follow the Board's normal due process.

Post-implementation Reviews

After a new Standard has been in use for a few years, the Board carries out
research through a Post-implementation Review to assess whether the Standard is
achieving its objective and, if not, whether any amendments should be considered.
As a result of the Post-implementation Review, the Board may start a new research
project. Find out more about PIRs here.

Our structure

The IFRS Foundation's three-tier structure

The IFRS Foundation has a three-tier governance structure, based on an

independent standard-setting Board of experts (International Accounting Standards
Board), governed and overseen by Trustees from around the world (IFRS Foundation
Trustees) who in turn are accountable to a monitoring board of public authorities
(IFRS Foundation Monitoring Board).

The IFRS Advisory Council provides advice and counsel to the Trustees and the
Board, whilst the Board also consults extensively with a range of other standing
advisory bodies and consultative groups.

Public accountability

Monitoring Board

The Monitoring Board is a group of capital market authorities and provides a

formal link between the Trustees and public authorities in order to enhance the
public accountability of the IFRS Foundation

Governance

Trustees of the IFRS Foundation

The Trustees of the IFRS Foundation are responsible for the governance and
oversight of the International Accounting Standards Board, including the
Constitution and due process for the development of the accounting standards

Independent standard-setting

International Accounting Standards Board

The International Accounting Standards Board (Board) is the independent standard-

setting body of the IFRS Foundation

IFRS Interpretations Committee

The interpretative body of the International Accounting Standards Board (Board),

which works with the Board in supporting the application of IFRS Standards.

Consultative bodies

Developing accounting standards for the global economy is a collaborative

exercise founded on transparency, full and fair consultation, and accountability.

Our Due Process Handbook—the blueprint for the standard-setting process, which
ensures that IFRS Standards are developed free from undue influence—requires that
the Board consider the perspectives of those affected by IFRS Standards globally.

To enable us to consult widely, we work closely with a wide network of advisory

committees and bodies, representing the many different stakeholder groups that
have an interest in and are affected by financial reporting.

These groups and bodies are important channels for us to gather input on our
work; the groups enable us to efficiently consult with interested parties from a
range of backgrounds and geographical regions.

Advisory bodies

Accounting Standards Advisory Forum

An advisory forum consisting of national standard-setters and regional standard-

setting bodies, contributing towards the goal of developing globally accepted
high-quality accounting standards

IFRS Advisory Council

The IFRS Advisory Council is the formal advisory body to the International
Accounting Standards Board and the Trustees of the IFRS Foundation.

Standing consultative groups

Capital Markets Advisory Committee

An independent committee providing the Board with regular input from users of
financial statements

Emerging Economies Group

A group with the aim of enhancing the participation of emerging economies in the
development of IFRS Standards

Global Preparers Forum

An international independent body providing the Board with input from companies
preparing financial statements

IFRS Taxonomy Consultative Group

A consultative group established to help discuss and develop the IFRS Taxonomy

Islamic Finance Consultative Group

A group established to focus on potential challenges in applying IFRS Standards

to Shariah-compliant instruments and transactions

SME Implementation Group

A group established to support the international adoption of the IFRS for SMEs®
Standard and monitor its implementation

World Standard-setters conferences

National standard-setters and regional bodies (NSS) are important partners in our
work to achieve the G20-endorsed objective of global accounting standards

Transition resource groups (TRGs)

TRG for IFRS 17 Insurance Contracts

A TRG established to aid the implementation of IFRS 17

Project consultative groups

Consultative Group for Rate Regulation

A consultative group established to inform the project on rate regulation

Management Commentary Consultative Group

A consultative group established to inform the project on management commentary

Flores, Alexander Piaca Conceptual Framework & Accounting Standards

BSAc 1-2 February 3, 2020

About the International Accounting Standards Board (Board)

The Board is an independent group of experts with an appropriate mix of recent

practical experience in setting accounting standards, in preparing, auditing, or
using financial reports, and in accounting education. Broad geographical
diversity is also required. The IFRS Foundation Constitution outlines the full
criteria for the composition of the Board, and the geographical allocation can be
seen on the individual profiles.

Board members are responsible for the development and publication of IFRS
Standards, including the IFRS for SMEs Standard. The Board is also responsible
for approving Interpretations of IFRS Standards as developed by the IFRS
Interpretations Committee (formerly IFRIC).

Members are appointed by the Trustees of the IFRS Foundation through an open and

rigorous process that includes advertising vacancies and consulting relevant
organisations

IFAC

With our member organizations, we serve the public interest by enhancing the
relevance, reputation, and value of the global accountancy profession.

Constitution & Bylaws

IFAC's Constitution and Bylaws detail the responsibilities and authority of

IFAC's Council, Board, and Board subcommittees. They also address IFAC’s mission,
membership requirements, and the election/appointment of IFAC Officers. These
documents were revised in 2013 to ensure that IFAC continues to embrace best
practices and enable timely action by improving governance structure, clarifying
the roles and responsibilities of IFAC in standard setting in the public
interest, and ensuring IFAC continues to have broad representation from all parts
of the profession. These versions of the IFAC Constitution and Bylaws were
approved by the IFAC Council in February 2014, and a subsequent revision of the
IFAC Bylaws was approved by the IFAC Council in November 2017.

Beginning with 63 founding members from 51 countries in 1977, IFAC's membership

has grown to now include over 175 members and associates in more than 135
countries and jurisdictions worldwide.*
IFAC was founded on October 7, 1977, in Munich, Germany, at the 11th World
Congress of Accountants to strengthen the global accountancy profession in the
public interest by:
 Developing high-quality international standards in auditing and assurance,
public sector accounting, ethics, and education for professional accountants
and supporting their adoption and use;
 Facilitating collaboration and cooperation among its member bodies;
 Collaborating and cooperating with other international organizations; and
 Serving as the international spokesperson for the accountancy profession.
At the first meeting of the IFAC Assembly and Council in October 1977, a 12-point
work program was developed to guide IFAC committees and staff through the first
five years of activities. Many elements of this work program are still relevant
today.
1. Develop statements which serve as guidelines for international and auditing
guidelines
2. Establish the basic principles which should be included in the code of
ethics of any member body of IFAC and to refine or elaborate on such
principles as deemed appropriate
3. Determine the requirements and develop programs or the professional
education and training of accountant
4. Collect, analyze, research, and disseminated information on the management
of public accounting practices to assist practitioners in more effectively
conducting their practices
5. Evaluate, develop, and report on financial management and other management
techniques and procedures
6. Undertake other studies of value to accountants, such as a possible study on
the legal liabilities of auditors
7. Foster closer relationships with users of financial statements including
preparers, trade unions, financial institutions, industry, governments, and
others
8. Maintain good relations with regional organizations and explore the
potential for establishing other regional organizations, as well as assisting
in their organizations and development
9. Establish regular communications among the members of IFAC and other
interested organizations, principally through an IFAC Newsletter
10. Organize and promote the exchange of technical information, educational
materials and professional publications, and other literature emanating from
member bodies
11. Organize and conduct an international congress of accountants approximately
every five years
12. Seek to expand the membership of IFAC 
 
*As of November 2018

IFAC’s Vision, Mission and Values IFAC’s vision is that the global accountancy
profession be recognized as a valued leader in the development of strong and
sustainable organizations, financial markets and economies. IFAC’s mission is to
serve the public interest by:

 Contributing to the development, adoption and implementation of high-quality

international standards and guidance

 Contributing to the development of strong professional accountancy

organizations and accounting firms, and to highquality practices by professional
accountants

 Promoting the value of professional accountants worldwide

 Speaking out on public interest issues where the accountancy profession’s

expertise is most relevant IFAC’s values are integrity, expertise and
transparency. These values are the guiding principles that IFAC as an
organization through its Council, Board, boards and committees, volunteers, and
staff seeks to exemplify.

Transnational Auditors Committee

Established May 2000
The IFAC Transnational Auditors Committee (TAC) serves as the official link
between IFAC and the Forum of Firms (FoF, Forum). It is broadly responsible for
implementing and advancing the Forum's objectives and operations. It also plays a
major role in encouraging Forum members to conduct high-quality international
audits by requiring the commitment to comply with certain international standards
as a condition of membership.
The TAC also supports audit quality by:
 Identifying audit practice issues and making suggested recommendations to
the appropriate standard-setting boards to review these issues as needed;
 Providing a forum to discuss best practices in areas including quality
control, auditing, independence, and training and continuing professional
development;
 Facilitating interaction among transnational firms, international
regulators, financial institutions, and other stakeholders with regard to
audit quality, systems of quality control, and transparency of international
networks; and
 Identifying qualified candidates to nominate to serve on the international
standard-setting boards.
Key Contacts

 Barry Naik, Deputy Director, Forum of Firms

Forum of Firms

The Forum of Firms is an independent association of international networks of

firms that perform transnational audits. The Forum's objective is to promote
consistent and high-quality standards of financial reporting and auditing
practices worldwide—bringing together firms that perform transnational audits and
involving them more closely with IFAC’s activities in audit and other assurance-
related areas. Forum members must demonstrate their commitment to adhere to and
promote the consistent application of high-quality audit practices worldwide, as
detailed in the Forum's Constitution.
Key Contacts

 David Isherwood, Chair

 Barry Naik, Deputy Director, Forum of Firms

Membership
Forum membership is open to networks and firms of all sizes that:
 Conduct, or have an interest in conducting, transnational audits;
 Promote the consistent application of high-quality audit practices and
standards worldwide;
 Support convergence of national audit standards with the International
Standards on Auditing issued by the International Auditing and Assurance
Standards Board; and
 Demonstrate commitment to the Forum's membership obligations as detailed
below.
 IFAC membership is a globally recognized hallmark of a high-quality
professional accountancy organization (PAO). IFAC membership makes it clear
to public and private sector organizations locally, regionally, and
internationally that your PAO has credibility, capacity and relevance.
 Because our requirements include adopting international standards adoption
 and supporting implementation, IFAC membership also demonstrates a PAO’s
expertise in and commitment to international standards, best practices, and
serving the public interest.
 Our members are our most important stakeholders and constituents. They guide
our strategic direction, steer our agenda, and contribute thought leadership
and resources to support the entire global profession.
 Our membership comprises more than 175 member organizations in more than 130
jurisdictions—representing more than 3 million professional accountants
worldwide.

Value of Membership

 Our member organizations help shape the voice of the global profession and
set its focus and direction. They also join the global conversation on
crucial issues, contributing necessary local and regional perspectives to
global debates and the international standard-setting processes.
 As part of the IFAC network, our member organizations gain access to
expertise, resources, and support that helps them strengthen the services
provided to their membership.

Our membership requirements include supporting international standards’ adoption

and implementation, as well as quality assurance and investigation and discipline
systems. Our Statements of Membership Obligations serve as a global framework for
credible and high-quality professional accountancy organizations (PAOs) focused
on serving the public interest. IFAC welcomes professional accountancy
organizations that are committed to our mission.
IFAC members are required to:
 Support our mission;
 Demonstrate an ongoing commitment to our Statements of Membership
Obligations;
 Be financially and operationally viable, and have an appropriate governance
structure;
 Make financial contributions to IFAC; and
 Meet the other criteria described in the IFAC Constitution and the IFAC
Bylaws.
PAOs are usually admitted as an IFAC associate and progress to member status.
Becoming a Member

IFAC membership is only open to professional accountancy organizations. IFAC

guides candidates through the admission process with the advice and oversight of
the IFAC Board and its Membership Committee. The process includes:
 An initial expression of interest by the PAO and establishing an ongoing
dialogue with IFAC (contact membership@ifac.org);
 Developing an understanding of IFAC admission criteria and member
requirements;
 Completing an initial Action Plan with guidance from IFAC;
 Seeking sponsorship from an existing IFAC member in good standing;
 Submitting application materials, sponsor’s report, and an application fee;
 IFAC’s assessment; and
 Consideration of the application by the IFAC Board and its Membership
Committee followed by a vote by the IFAC Council.
For detailed information on the admission process, please see the IFAC Membership
Admission Criteria and Process.
Member Compliance Program

IFAC member organizations participate in our Member Compliance Program. The

Program helps member organizations understand and follow clear guidelines and
benchmarks to ensure high-quality performance and champion international
standards’ adoption and implementation. It also supports continual improvements
in development areas.
The Compliance Program operates in accordance with agreed upon due process
and working procedures. It is overseen by IFAC Board.
The Compliance Program’s two principal outputs are member-produced status updates
and IFAC-produced assessments that highlight adoption and implementation
advancements, challenges, and opportunities for further collaboration and
partnerships. These updates and assessments power IFAC’s ability to report on the
global status of international standards.
Learn about international standards’ adoption status and how IFAC member
organizations support adoption and implementation by visiting our global impact
map.

Affiliates

IFAC also has Affiliates, organizations that do not meet Associate admission
criteria but are involved in the development of the accountancy profession.
Netherlands
Nederlandse Orde van Register EDP-Auditors
55, 1083 GR
Amsterdam
Netherlands
Tel: +31 20 - 3010 3
Fax: +31 20 - 3010 3
norea@norea.nl
http://www.norea.nl

Groupings

Six accountancy groupings are acknowledged by IFAC. These groupings support the
objectives and pronouncements of IFAC and support the advancement of the
accountancy profession within their constituencies. A policy statement sets out
the criteria for an accountancy grouping to be acknowledged by IFAC and the
obligations for that organization.

Association of Accountancy Bodies of West Africa (ABWA)

Akintola Williams House
Plot 2048, Michael Okpara Street - Off Olusegun Obasanjo Way
Zone 7, P.O. Box 7726, Wuse District, Abuja, FCT
Nigeria
Tel: 234-(09)-6718593, 09-6724172
Fax: 234-(09)-6718593
abwa_secretariat@yahoo.com
http://www.abwa-online.org
Fédération des Experts-Comptables Mediterranéens (FCM)
Via di San Claudio, 69
00187 Rome
Italy
Tel: +39 (06) 62208124
Fax: +39 (06) 62209128
info@fcmweb.org
http://www.fcmweb.org/

Fédération Internationale des Experts Comptables et Commissaires aux Comptes

Francophones (FIDEF)
19 rue Cognacq-Jay
PARIS 75007
France
Tel: 00 33 1 44 15 62 95
Fax: 33-1/55-04-31-4
fidef@fidef.org
http://www.fidef.org

Gulf Cooperation Council Accounting and Auditing Organization (GCCAAO)

King Abdul Aziz
Riyadh
Saudi Arabia
Tel: 00966 1 4736808
Fax: 00966 1 4736805
info@gccaao.com
http://www.gccaao.org/

South Asian Federation of Accountants (SAFA)

c/o The Institute of Chartered Accountants of India
P. O. Box No. 7100, Indraprastha Marg
New Delhi 110 002
India
Tel: +91.11.23370055, 23378406, 23378426, 23379036
Fax: +91.11.23379334
safa@icai.org
http://www.esafa.org/

The Institute of Chartered Accountants of the Caribbean (ICAC)

6 Lockett Avenue
Kingston 4
Jamaica
Tel: (876) 922-3223
Fax: (876) 948-6610
admin@icacorg.com; ceo@icacorg.com
http://www.icac.org.jm/

Regional Organizations
Recognized Regional Organizations (ROs) are independent bodies which share IFAC's
mission and values and which, in many cases, share IFAC's membership. ROs play a
valuable role by supporting the development of the international accountancy
profession, facilitating convergence to international standards, and providing
leadership in addressing issues affecting the accountancy profession in their
region and/or constituencies.
IFAC wishes to have a limited number of regional organizations that represent the
major geographic regions of the world. A policy statement sets out the criteria
under which a regional organization may be recognized by IFAC and the specific
obligations for that organization.

Accountancy Europe
Avenue d'Auderghem, 22-28
B-1040 Brussels
Belgium
Tel: +32 (0)2 893 33 60
Fax: +32 (0)2 231 11 12
info@accountancyeurope.eu
https://www.accountancyeurope.eu/

Confederation of Asian and Pacific Accountants (CAPA)

Unit 10-3, Level 10, Menara Sentral Vista
150, Jalan Sultan Abdul Samad
Kuala Lumpur 50470
Malaysia
Tel: +60 (3) 2276 2023
Fax: +60-3-2/274.9949
http://www.capa.com.my

Interamerican Accounting Association (IAA)

Edif. Capital Center 1
239 Ave. Arterial Hostos, Suite 1401
San Juan, Puerto Rico 00918-1400
United States
Tel: +1-305/225.1991
Fax: +1-305/255.2011
http://www.contadores-aic.org/

Pan African Federation of Accountants (PAFA)

17 Fricker Road
Illovo, Sandton 2000
South Africa
Tel: +27 (0) 11 479 0604
info@pafa.org.za
http://www.pafa.org.za/

The IAESB was the independent standard-setting body that established the
International Education Standards. These standards detail the principles
professional accountancy organizations should follow to build a national
accountancy profession that is fully capable of fulfilling the complex demands
economies and societies place on it.
A rigorous due process was followed in developing the IES. The Public Interest
Oversight Board oversaw the work of the IAESB and its Consultative Advisory Group
to ensure that activities followed due process and were responsive to the public
interest.
To remain relevant in an environment of rapid change, professional accountants
increasingly must demonstrate skills beyond typically-recognized accountancy
competencies. Today’s macro-trends have direct implications for the accountancy
profession’s approach to professional development.
To ensure that the accountancy profession can address the challenges posed by a
rapidly-changing environment, IFAC established a new comprehensive and integrated
approach to advancing accountancy education and the global level and the IAESB
ceased operation in 2019 (watch our video detailing the new approach).
This new approach builds on the high-quality work of the IAESB, which made a
significant contribution to the accountancy profession by developing the
International Education Standards and shaping the direction of quality
accountancy education.

1.0 PURPOSE

The mission of the International Federation of Accountants (IFAC), as set out in

its constitution, is “to serve the public interest by contributing to the
development, adoption and implementation of high-quality international standards
and guidance; contributing to the development of strong professional accountancy
organizations and accounting firms, and to high quality practices by professional
accountants; promoting the value of professional accountants worldwide; and
speaking out on public interest issues where the accountancy profession’s
expertise is most relevant.” In pursuing this mission, the IFAC Board has
established the International Accounting Education Standards Board (IAESB) to
function as an independent standard-setting body under the auspices of IFAC and
subject to the oversight of the Public Interest Oversight Board (PIOB).
The IAESB develops and issues, in the public interest and under its own
authority, high-quality standards, practice statements, information papers and
other information documents on pre-qualification education and training of
professional accountants and on continuing professional education and development
for members of the accountancy profession.
The IAESB acts as a catalyst in bringing together the developed and developing
nations, as well as nations in transition, and to assist in the advancement of
accountancy education programs worldwide, particularly where this will assist
economic development. The IAESB’s role is focused on addressing the professional
knowledge, skills and professional values, ethics and attitudes of the
accountancy profession to serve the overall public interest.
The IFAC Board has determined that designation of the IAESB as the responsible
body, under its own authority and within its stated terms of reference, best
serves the public interest in achieving this aspect of its mission.
2.0 OBJECTIVE

The IAESB’s objective is to serve the public interest by:

Establishing a series of high-quality standards and other publications
reflecting good practice in the education, development, and assessment of
professional accountants;
Promoting the adoption and implementation of the International Education
Standards;
Developing education benchmarks for measuring the implementation of the
International Education Standards; and
Advancing international debate on emerging issues relating to the education,
development, and assessment of professional accountants.
3.0 PRONOUNCEMENTS

In fulfilling the above objective, the IAESB develops and issues the following
authoritative publications:
International Education Standards for Professional Accountants (IESs), which
address the principles of learning and development for professional accountants.
As they prescribe good practice in learning and development for professional
accountants, they should be incorporated into the educational requirements of
IFAC Member Bodies.
International Education Practice Statements for Professional Accountants (IEPSs),
which assist in implementing generally accepted good practice in learning and
development for professional accountants. IEPSs may interpret, illustrate, or
expand on matters related to IESs. In this function, IEPSs assist IFAC Member
Bodies to implement and achieve good practice, as prescribed by the IESs. The
IEPS may also include commendable methods or practices, including those
recognized as current best practice, that IFAC Member Bodies may wish to adopt.
From time to time the IAESB also issues non-authoritative publications,
including:
International Education Information Papers for Professional Accountants (IEIPs),
which may critically assess emerging learning and development issues and
practices. The aim of such IEIPs is to (a) promote consideration of these issues,
and (b) encourage comment and feedback. In this way, they may be useful
forerunners of IESs and IEPSs. Alternatively, the IEIPs may simply be descriptive
in nature. In this function, they promote awareness of learning and development
issues or practices relating to the accountancy profession; and
Additional support material, such as toolkits or interpretation guidance, which
assist IFAC Member Bodies in achieving good practice in learning and development,
as prescribed by the IESs.
The official text of the IESs, IEPSs, IEIPs, and other publications is that
published by the IAESB in the English language.
4.0 MEMBERSHIP

The members of the IAESB, including the Chair and Deputy Chair, are appointed by
the IFAC Board on the recommendation of the IFAC Nominating Committee and with
the approval of the PIOB. The appointment as Deputy Chair does not imply that the
individual concerned is the Chair-elect.
The IAESB has 18 member comprising practitioners and non-practitioners,[1] of
whom no more than nine shall be practitioners and no less than three shall be
public members.[2] A public member is an individual who satisfies the
requirements of a non-practitioner and is also expected to reflect, and is seen
to reflect, the wider public interest. Not all non-practitioners are therefore
eligible to be public members. The three public members may be members of IFAC
Member Bodies.
The selection process is based on the principle of “the best person for the job,”
the primary criterion being the individual qualities and abilities of the nominee
in relation to the position for which they are being nominated. However, the
selection process also seeks a balance between the personal and professional
qualifications of a nominee and representational needs, including gender balance
of the IAESB. Accordingly, consideration will be given to other factors including
geographic representation, sector of the accountancy profession (including
academic and non-academics), size of organization, and level of economic
development.
IAESB members may be accompanied at meetings by a technical advisor. A technical
advisor has the privilege of the floor with the consent of the IAESB member he or
she advises, and may participate in projects. Technical advisors are expected to
possess the technical skills to participate, as appropriate, in IAESB debates and
attend IAESB meetings regularly to maintain an understanding of current issues
relevant to their role.
The IAESB may also include up to three observers, appointed at the discretion of
the IFAC Board in consultation with the PIOB. Observers may attend IAESB
meetings, have the privilege of the floor, and may participate in projects.
Observers are expected to possess the technical skills to participate fully in
IAESB debates and attend IAESB meetings regularly to maintain an understanding of
current issues.
The Chair of the IAESB Consultative Advisory Group (CAG) is expected to attend
IAESB meetings, or to appoint a representative of a CAG member organization to
attend. The Chair of the IAESB CAG, or appointed representative, has the
privilege of the floor at IAESB meetings.
IAESB members are required to sign an annual statement declaring they will act in
the public interest and with integrity in discharging their roles within IFAC.
Nominating organizations of members of the IAESB and the employing organization
of the chair of the IAESB (as applicable) are asked to sign independence
declarations.
5.0 THE IAESB CHAIR

The Chair is selected by the Nominating Committee and recommended to the IFAC
Board for its agreement and to the PIOB for subsequent approval.
6.0 TERMS OF OFFICE

The standard term for IAESB members is three years, with approximately one-third
of the membership rotating each year. A member may serve up to two consecutive
terms, for an aggregate term of six years.
The Chair ordinarily may serve three consecutive terms (as Chair or as a member
for one or two terms preceding the appointment as Chair), for an aggregate of
nine years. In exceptional circumstances, to be specified by the Nominating
Committee, the Chair may serve for one additional consecutive term, for an
aggregate term of twelve years.
7.0 MEETING PROCEDURES

Each IAESB meeting requires the presence, in person or by simultaneous

telecommunications link, of at least twelve appointed members.
IAESB meetings shall be chaired by the Chair, or in his/her absence, by the
Deputy Chair. In the event of the absence of both, the members present shall
select one of their number to take the chair for the duration of the meeting, or
of the absence of the Chair and Deputy.
Each member of the IAESB has one vote which can be exercised only by the
appointed member. The affirmative vote of at least twelve of those present at
the meeting or by simultaneous telecommunications link is required to approve or
withdraw IESs, IEPSs, and other pronouncements, and to approve exposure drafts.
IAESB meetings to discuss the development, and to approve the issuance or
withdrawal of IESs, IEPSs, exposure drafts and other pronouncements are open to
the public. Matters of a general administrative nature or with privacy
implications may be dealt with in closed sessions of the IAESB; no decisions that
would affect the content of the IESs, IEPSs, and other pronouncements issued by
the IAESB are made in a closed session. Agenda papers for open sessions,
including minutes of the meetings of the IAESB are published on the IFAC website.
The meetings and agenda papers are in English, which is the official working
language of IFAC.
The PIOB has the right to attend, or be represented at, all meetings and closed
sessions of the IAESB.
8.0 DUE PROCESS

The IAESB is required to be transparent in its activities, and in developing IESs

and IEPS, to adhere to due process as approved by the PIOB.
In setting its strategy and work program, the IAESB obtains the PIOB’s conclusion
as to whether the due process used to develop the IAESB’s strategy and work
program has been followed effectively and with proper regard for the public
interest. The IAESB also obtains the PIOB’s opinion, as at the date of that
opinion, on the appropriateness of the items on the work program, and its
approval of the completeness of the strategy and work program from a public
interest perspective. The IAESB adds to its work program those items that the
PIOB resolves should, from a public interest perspective, form part of the
IAESB’s work program.
9.0 CONSULTATIVE ADVISORY GROUP

The objective of the IAESB CAG is to provide input to and assist the IAESB
through consultation with the CAG member organizations and their representatives
at the CAG meetings, in order to obtain: advice on the IAESB’s agenda and project
timetable (work program), including project priorities; technical advice on
projects; and other matters of relevance to the activities of the IAESB.
10.0 OTHER

The IAESB reports annually on its work program, activities and progress made in
achieving its objectives during the year. This information is normally included
as part of the IFAC annual report.
The IFAC Board will review the terms of reference of the IAESB at least every
three years.

[1] A non-practitioner is a person who is not a member or employee of an audit

practice firm and, in respect of individuals who have been members or employees
of such firms, there shall normally be a cooling-off period of three years, but
that such period may, on a comply or explain basis, be reduced, provided that
such a reduction shall not result in a cooling-off period of less than one year.
Where an individual is proposed for appointment with less than a three year
cooling-off period IFAC shall provide to the PIOB the reasons for the proposed
appointment, which the PIOB shall, in line with its authority to approve all
appointments to the IAESB, have the authority to accept or decline.
[2] While these sentences reflect changes approved to membership in 2011, the
transition to the changes in membership will commence in 2013.

The IESBA is an independent standard-setting board that develops, in the public

interest, high-quality ethical standards and other pronouncements for
professional accountants worldwide. This includes the International Code of
Ethics for Professional Accountants, which establishes ethical requirements for
professional accountants.

The board also supports adoption and implementation, promotes good ethical
practices globally, and fosters international debate on ethical issues faced by
accountants.

The IPSASB develops accounting standards and guidance for use by public sector
entities. The structures and processes that support the operations of the IPSASB
are facilitated by the International Federation of Accountants (IFAC). The
IPSASB’s Strategic Objective is:
Strengthening Public Financial Management (PFM) globally through increasing
adoption of accrual-based International Public Sector Accounting Standards™
(IPSAS™).
Delivered through two main areas of activity, both of which have a public
interest focus:
 Developing and maintaining IPSAS and other high-quality financial reporting
guidance for the public sector; and
 Raising awareness of IPSAS and the benefits of accrual adoption.
The IPSASB follows an open and transparent due process to ensure that IPSAS are
developed in the public interest. This process provides the opportunity for all
those interested in public sector financial reporting, including those directly
affected by the Standards, to make their views known to the IPSASB, and ensures
that all views are considered in the standard-setting development process.

Governance
Following the report of the IPSASB Governance Review Group in 2015, the Public
Interest Committee (PIC) was established. The PIC’s remit is to provide assurance
that the IPSASB’s standard-setting activities are in the public interest by
providing recommendations on:
 The terms of reference of the IPSASB;
 The arrangements for nomination and appointment of IPSAB members; and
 The procedures and processes for formulation of the IPSASB’s strategy and
work plan; and development of IPSAS.
The PIC is currently comprised of individuals from the International Monetary
Fund, International Organisation of Supreme Audit Institutions, Organisation for
Economic Co-operation and Development, and the World Bank Group.

Funding
The IPSASB’s work, including the standards program, would not be possible without
the support of our funding partners. We are funded entirely by voluntary
contributions (both financial and in-kind) and rely heavily on the generosity and
commitment of our partners. 
We are deeply grateful for the continued support of the partners shown below.
 
International Federation of Accountants 
Asian Development Bank 
 Chartered Professional Accountants of Canada
New Zealand External Reporting Board 
Government of Canada
Government of New Zealand
The IPSASB also partners with other hosts on meetings and outreach activities
throughout the year.

International Auditing and Assurance Standards Board

The International Auditing and Assurance Standards Board (IAASB) is an

independent standard-setting body that serves the public interest by setting
high-quality international standards for auditing, quality control, review, other
assurance, and related services, and by facilitating the convergence of
international and national standards. In doing so, the IAASB enhances the quality
and uniformity of practice throughout the world and strengthens public confidence
in the global auditing and assurance profession.
The IAASB’s Strategy for 2015-2019 and the IAASB Work Plan for 2015-2016 set the
direction and priorities for its activities. The IAASB’s efforts are focused on
development, adoption and implementation of international standards addressing
audit, quality control, review, other assurance, and related services
engagements.
The IAASB’s medium-term strategy addresses the following three main themes in the
public interest:
 Supporting global financial stability;
 Enhancing the role, relevance and quality of assurance and related services
in an evolving world; and
 Facilitating adoption and implementation of the standards.

The IAASB follows a rigorous due process in developing its pronouncements. Input
is obtained from a wide range of stakeholders including the IAASB's Consultative
Advisory Group national auditing standard setters, IFAC member bodies and their
members, regulatory and oversight bodies, firms, governmental agencies,
investors, preparers, and the general public. Exposure Drafts of proposed
pronouncements are posted on the website and comments are invited; final
pronouncements are accompanied by a Basis for Conclusions with respect to
comments received. The Public Interest Oversight Board (PIOB) oversees the work
of the IAASB and its CAG to ensure that the activities of the IAASB follow due
process and are responsive to the public interest.
The IAASB is dedicated to operating as transparently as possible. IAASB meetings
are open to the public and meeting agendas, agenda papers, and meeting highlights
are posted on the website. In addition, the website includes project histories,
audio recordings of the IAASB meetings, IAASB Exposure Drafts and all comments
made on those drafts by stakeholders.