Implementation and maintenance of IFRSs
The IASB and its Interpretations Committee are responsible for the maintenance of IFRSs.
The objectives of the Interpretations Committee are to interpret the application of IFRSs, provide guidance on financial reporting issues that are specifically addressed in the IFRSs and to undertake other tasks at the request of the IASB. Such financial reporting issues could include identifying if divergent practices have emerged for accounting for particular transactions, if cases of doubt exist about the appropriate accounting treatment for a particular circumstance or if investors have expressed concerns about poorly specified disclosure requirements.
The Interpretations Committee works in partnership with the IASB to give guidance that responds to the implementation needs of those applying IFRSs and to promote the consistent application of IFRSs internationally.
The Interpretations Committee responds to issues that have been submitted by providing guidance that is consistent with a principle-based approach to standard-setting.
The Interpretations Committee may address these issues through:
- enhancing mandatory requirements (new or revised requirements within IFRSs); and
- providing non-mandatory guidance.
The mandatory requirements could include:
Non-mandatory solutions that the Interpretations Committee could use to address issues include:
- proposals for additional illustrative examples;
- explanations via rejection notices (also known as Agenda Decisions); and
- referral to the IFRS Education Initiative, including proposals for inclusion in occasional staff articles.
Some of the IFRSs, for example IFRS 3 Business Combinations, are converged with the corresponding guidance in United States' Generally Accepted Accounting Principles (US GAAP). When the Interpretations Committee and the IASB respond to questions about the consistent application of such converged standards, they are mindful of maintaining convergence. This is achieved through liaison and coordination with the staff and members of the US standard setter, the Financial Accounting Standards Board (FASB) and the US Emerging Issues Task Force (EITF).