The International Accounting Standards Board (IASB) is an independent international standard-setting organization responsible for developing and promoting the use of high-quality financial reporting standards. It was established in 2001 and is based in London, United Kingdom.
The primary objective of the IASB is to develop a single set of global accounting standards that can be used for the preparation of financial statements by publicly accountable entities. These standards, known as International Financial Reporting Standards (IFRS), provide guidance on various topics, including recognition, measurement, presentation, and disclosure of financial information. They aim to enhance comparability, transparency, and reliability of financial statements across different jurisdictions.
The IASB operates under a due process that ensures its standard-setting activities are transparent, thorough, and inclusive. The process involves extensive research, consultation with stakeholders, and deliberation by the Board. The IASB also cooperates with national standard-setters and regional organizations to promote the adoption and implementation of IFRS worldwide.
As an independent body, the IASB is governed by a board of members who are accountable to various stakeholders, including investors, regulators, auditors, and preparers of financial statements. The board comprises individuals with diverse backgrounds and expertise in accounting, finance, and business. They set the strategic direction of the organization, oversee the development of accounting standards, and ensure the proper application and enforcement of IFRS.
Overall, the IASB plays a crucial role in the development and maintenance of a globally accepted financial reporting framework, fostering consistency and reliability in financial reporting practices across countries and industries.
