The IASB full form is a term that holds great significance in the fields of accounting and finance. You may even have come across the acronym now and then. But what does it stand for and what does it do? In this blog, we will explain the full form of IASB along with its purpose and functions. Read on to know more!
IASB Full Form
The full form of IASB is the International Accounting Standards Board. It is an independent, private-sector body that develops and approves International Financial Reporting Standards (IFRSs). IFRSs are a set of accounting standards that are used by more than 140 countries around the world to prepare and present financial statements.
The IASB was formed in 2001 as the successor to the International Accounting Standards Committee (IASC), which had been established in 1973 and had issued a number of standards known as International Accounting Standards (IAS). It operates under the oversight of the IFRS Foundation, a not-for-profit organization that supports the work of the IASB and promotes the adoption and consistent application of IFRSs.
IASB: Purpose and Functions
The aim of the IASB is to make high-quality, clear, enforceable and globally accepted accounting standards that serve the public interest and improve the transparency, comparability and reliability of financial information. It has full responsibility for all technical matters related to financial reporting of the IFRS Foundation, including:
- Making and pursuing its technical agenda, after consulting with the Trustees and the public.
- Making and issuing IFRSs (except Interpretations) and exposure drafts, following the due process given in the Constitution.
- Approving and issuing Interpretations made by the IFRS Interpretations Committee, a body of the IASB that gives timely guidance on application issues that come up in practice.
- Supporting the consistent application of IFRSs through various activities, such as implementation support, education, research and outreach.
IASB has 14 members at present, who are chosen as a group of experts with different experiences of standard-setting, preparing and using accounts, market/financial regulation and academic work as well as from different geographical backgrounds. The members work together to reach agreement on accounting issues and to develop high-quality standards that meet the needs of users of financial information.
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We hope this blog post has helped you understand what IASB full form stands for and what it does. If you want to discover more full forms like this, check out this full forms list and don’t forget to subscribe to Leverage Edu. Thank you for reading!