International Accounting Standards Board

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The International Accounting Standards Board (IASB) is the independent, accounting standard-setting body of the IFRS Foundation.^[1]

The IASB was founded on April 1, 2001, as the successor to the International Accounting Standards Committee (IASC). It is responsible for developing International Financial Reporting Standards (IFRS), previously known as International Accounting Standards (IAS) and promoting the use and application of these standards.

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Foundation[edit]

On December 31, 2001, The International Accounting Standards Foundation (IASF) was incorporated as a tax-exempt organization in the U.S. state of Delaware.^[2] On February 6, 2001, the International Financial Reporting Standards Foundation was also incorporated as a tax-exempt organization in Delaware.^[3] The IFRS Foundation is an independent, not-for-profit organisation. Its primary mission is to develop, in the public interest, a single set of high-quality, understandable, enforceable and globally accepted International Financial Reporting Standards (IFRS) based upon clearly articulated principles.^[4]

IFRS are developed by the International Accounting Standards Board (IASB), the independent standard-setting body of the IFRS Foundation.^[4] The IASB assumed accounting standard-setting responsibilities from its predecessor body, the International Accounting Standards Committee (IASC), on March 1, 2001. This was the culmination of a restructuring based on the recommendations of the report Recommendations on Shaping IASC for the Future.

The IASB forms part the three-tier structure employed by the IFRS Foundation and is responsible for setting the IFRS and related technical activities. The IASB is overseen by the Trustees of the IFRS Foundation, responsible for the organisation's governance, the appointment of IASB members and funding. The IFRS Foundation is publicly accountable to a Monitoring Board^[5] of capital market authorities.^[6]^[7]

Members[edit]

The IASB originally had 13 full-time Board members, each with one vote.^[8] They are selected as a group of experts with a mix of experience of standard-setting, preparing and using accounts, and academic work.^[4] At their January 2009 meeting the Trustees of the Foundation concluded the first part of the second Constitution Review, announcing the creation of a Monitoring Board and the expansion of the IASB to 16 members and giving more consideration to the geographical composition of the IASB.

The IFRS Interpretations Committee has 14 members. Its brief is to provide timely guidance on issues that arise in practice.^[4]

A unanimous vote is not necessary in order for the publication of a Standard, exposure draft, or final "IFRIC" Interpretation. The Board's 2008 Due Process manual stated that approval by nine of the members is required.^[9]

As of July 2014, the members included:^[8]

Hans Hoogervorst (Chairman), Netherlands, former Minister of Health, Minister of Finance
Ian Mackintosh (Vice-chairman), New Zealand, former Coopers & Lybrand, Chief Accountant Australian Securities and Investments Commission
Stephen Cooper, UK, UBS Investment Research
Phillipe Danjou, France, former Arthur Andersen, AMF (Financial Markets Authority of France)
Martin Edelmann, former Group Reporting at Deutsche Bank AG
Patrick Finnegan, US, formerly of the CFA Institute
Gary Kabureck (US)
Sue Lloyd (New Zealand)
Amaro Luiz de Oliveira Gomes (Brazil)
Takatsugu Ochi (Japan)
Darrel Scott (South Africa)
Mary Tokar (US)
Chungwoo Suh (Korea Republic)
Zhang Wei-Guo, China, former professor in Shanghai, China Acc. Standards Committee

Former IASB members include James J. Leisenring, Robert P. Garnett, Mary Barth, David Tweedie, Gilbert Gélard, Warren McGregor, and Tatsumi Yamada.

Chairmen[edit]

On July 1, 2011, Hans Hoogervorst succeeded David Tweedie as Chairman. David Tweedie had served as the Board's Chairman since its creation in 2001.^[10]

Due process[edit]

The IASB Handbook describes the consultative arrangements of the IASB.^[9] The Board also publishes a brief guide on how standards are developed.^[11]

Funding[edit]

The IFRS Foundation raises funds for the operation of the IASB.^[11] Most contributors are banks and other companies which use or have an interest in promoting international standards. In 2008, American companies gave £2.4 million, more than those of any other country. However, contributions fell in the wake of the financial crisis of 2007–2010, and a shortfall was reported in 2010.^[12]