BIM31026 - Tax and accountancy: International Financial Reporting Standards and International Accounting Standards: what are they?

The International Accounting Standards Board

The International Accounting Standards Board is a non-governmental body which is committed to developing a single set of global accounting standards. The Board co-operates with national accounting standard setters to achieve convergence in accounting standards around the world.

The IASB publish-

• International Financial Reporting Standards,
• Exposure Drafts, and
• International Financial Reporting Interpretations Committee (IFRIC) Interpretations of International Financial Reporting Standards.

It has also taken over those standards published by the International Accounting Standards Committee,

• International Accounting Standards, and
• Standard Interpretations Committee (SIC) Interpretations of International Accounting Standards.

True and fair view

The IASB Framework, at paragraph 46, says:

“Financial statements are frequently described as showing a true and fair view of, or as resenting fairly, the financial position, performance and changes in financial position of an enterprise. Although this Framework does not deal directly with such concepts, the application of the principal qualitative characteristics and of appropriate accounting standards normally results in financial statements that convey what is generally understood as a true and fair view of, or as presenting fairly such information”.