The Regulatory Framework

Question 1

Why regulatory framework important for financial statements?

Answer 1

• true/fair view
• high standards
• comparable across different companies
• accounting concepts can be subjective

Question 2

IFRSF stands for

Answer 2

International Financial Reporting Standards Foundation

Question 3

IFRSF role

Answer 3

• appoints members to IASB/IFRIC/IFRS AC
• oversees regulatory system
• raises finance to support it
• promote use/applications of standards
• take into account all types of entities

Question 4

IASB stands for

Answer 4

International Accounting Standards Board

Question 5

IASB Role

Answer 5

• develop standards (IFRS/IAS only revisions)
• liase with national accounting standards (UK = FRC)
• appointed by IFRSF and operates under them
• made up of different global economies

Question 6

IFRIC stands for

Answer 6

IFRS Interpretations Committee

Question 7

IFRIC Role

Answer 7

• appointed by IFRSF
• reports to IASB
• issue guidance on how to apply IFRSs
• how to account for new financial reporting issues

Question 8

ISSB stands for

Answer 8

International Sustainability Standards Board

Question 9

ISSB role

Answer 9

• formed 2021 as environmental info became more important for investors/public image
• deliver sustainability-related disclosure standards

Question 10

IFRS AC stands for

Answer 10

International Financial Reporting Standards Advisory Council

Question 11

IFRS AC role

Answer 11

• forum used by IASB to consult with outside world
• advises IASB on agenda/timetable
• advises on areas to be considered by IFRIC

Question 12

IFRS stand for

Answer 12

International Financial Reporting Standards

Question 13

IFRS role

Answer 13

• provide guidance as to how transactions/events should be
• recognised - when/where recorded
• measured- what amount
• presented- what heading
• disclosed- what info shown in notes of accounts
  in financial statements
• any limitation made clear
• not intended to be applied to immaterial items