International Accounting Standards Board - Explained
What is the International Accounting Standards Board?
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Table of ContentsWhat is the International Accounting Standards Board (IASB)?What Does the IASB Do? Foundation Members Academic Research on the International Accounting Standards Board (IASB)
What is the International Accounting Standards Board (IASB)?
The International Accounting Standards Board is the regulatory body of the IFRS Foundation.
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What Does the IASB Do?
The IASB established on the 1st of April 2001, develops and promotes the use of the International Financial Reporting Standards (IFRS). It was formerly known as the International Accounting Standards Committee (IASC).
The International Accounting Standards Foundation (IASF) was established in Delaware on December 1920 while the International Financial Reporting Standards Foundation was established as an independent, not-for-profit organization on February 2000. The development of a single set of high quality and globally accepted IFRS based upon clearly articulated principles is its aim. The IASB serves as the independent standard setting body of the IFRS foundation and develops the IFRS. As a result of restructuring based on the recommendations of the report Recommendations on Shaping IASC for the Future, the IASB took over accounting standard setting responsibilities from its predecessor, the IASC on 1st March 2000.The structure of the IFRS Foundation is such that it reports to the monitoring board of capital market authorities while its trustees oversee the IASB with the responsibility of governing the organization, funding and selecting its members.
The 13 members of the IASB were expanded to 16 on January 2009 in order to give consideration to its geographical composition. They are a select group of experts with a mix of experience and have one vote each. It is not compulsory for them to have a unanimous vote as only nine votes are required to approve the publication of a standard, exposure draft or the final IFRIC interpretation.
Academic Research on the International Accounting Standards Board (IASB)
- Legitimating transnational standard-setting: The case of the International Accounting Standards Board, Richardson, A. J., & Eberlein, B. (2011). Journal of Business Ethics, 98(2), 217-245. Due to an increase in the use of transnational standard setting bodies, issues have been raised about the maintenance of the legitimacy and accountability of such bodies. As a result, the IASB defends itself against such issues by basing its support on technical competence, independence and due process. The work carries out an analysis on this through comparison with established benchmarks in some states. It also lets us know the challenges that transnational standard setters face.
- Exploring social, political and economic dimensions of accounting in the global context: the International Accounting Standards Board and accounting disaggregation, Gallhofer, S., & Haslam, J. (2007). Socio-Economic Review, 5(4), 633-664.The article carries out a critique of the IASB by identifying and pointing out issues about the institution, stating that it does not apply its principles in a straight-forward manner while indicating areas of potential in which it could better serve the public interest.
- The International Accounting Standards Board, Donnelly, S. (2007). The New Political Economy, 12(1), 117-125. The journal explores the activities of the IASB, its significant rise in influence and controversial issues encountered by the board. It also examines the key role standard setting plays in the governance of political economies and the consequences of the International Accounting Standards on such.
- How accountable is the 'International Accounting Standards Board', Kerwer, D. (2007, September). In 6th SGIR Pan-European Conference in International Relations. An analysis of the accountability of the IASB to external actors in response to its influence on several stakeholders while discussing reforms to increase it is carried out in this work
- The International Accounting Standards Board and evidence-informed standard-setting, Teixeira, A. (2014). Accounting in Europe, 11(1), 5-12. This is a description of some of the steps the IASB is taking to develop its research program, reduce the risks of using only previously available materials in standard-setting and to draw on the work and people in the larger research community. They were taken in response to the need to move from making decisions based on assertions to evidence informed standard setting.
- Dealing with change: the strategies of the International Accounting Standards Board and its funders, Porter, S., Brown, A. M., Purushothoman, M., & Scharl, A. (2006). Strategic change, 15(6), 305-317. The paper examines the strategic ways environmental regulations as regards accounting are avoided by some organizations and how the International Accounting Standards Board and its funders respond to natural environment issues.
- The international accounting standards board, Cellucci, R. (2010). Neimann Business Review, 39(2), 14-29. The journal explores an assessment of the International Accounting Standards Board in comparison with the Financial Accounting Standards Board while outlining the pros and cons on why the United States as the only country in the world that does not follow the International Financial Reporting Standards (IFRS) should comply with the IASB instead of the FASB whose Generally Accepted Accounting Principles (GAAP) it has been previously complying with.
- The impact of International Accounting Standards Board (IASB)'s guidelines for preparing management commentary (MC): Evidence from Italian listed firms, Ginesti, G., Macchioni, R., Sannino, G., & Spano, M. (2013). Journal of Modern Accounting and Auditing, 9(3), 305. This is a study into the effect of the new guidance on the management commentary (MC) as contained in the IFRS issued in 2010 by the IASB on the voluntary disclosure practices of the Italian firms. The survey used in determining this notes large differences in the level and type of disclosure provided in MC among the sectors and firms while showing that the disclosures provided by the Italian listed firms is not affected by the IASBs guidelines.
- A tetranormalization intervention of the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB), Smith, W. L., Boje, D. M., & Foster III, T. W. (2013). Recherches en Sciences de Gestion, (6), 65-101. The article makes a case for the tetranormalization of the FASB and the IASB standards which could lead to a more effective collaboration due to the failure of their convergence efforts as symbolized by the Norwalk Agreement of 2002.
- Rising powers and transnational private governance: The international accounting standards board, Nlke, A. (2015). In Rising powers and multilateral institutions (pp. 96-116). Palgrave Macmillan, London. This examines the structure of the IASB in regards to the role of rising powers in multilateral reform, thus classifying it as a transnational private governance body. This classification is based on the fact that the most important funding sources are international accounting firms, though the contributions by public bodies has been on the increase.
- International Accounting Standards Board, Saw, P. (2013). In Encyclopedia of Corporate Social Responsibility (pp. 1492-1494). Springer, Berlin, Heidelberg. The work views the IASB as a solution to the controversial and problematic challenges of twenty-first century accounting practice.