MoU between IASB and IFAC
In November 2011 the IASB and the International Federation of Accountants (IFAC) announced an agreement to strengthen their co-operation in developing private and public sector accounting standards.
IFAC supports the independent International Public Sector Accounting Standards Board (IPSASB), which is responsible for developing International Public Sector Accounting Standards (IPSASs). IPSASs are used by an increasing number of public authorities, including national and local governments, agencies and regulatory bodies from around the world, and by many international organisations.
The boards have worked together in the past: many IPSASs are primarily drawn from IFRSs, and the agreement, in the form of a Memorandum of Understanding (MoU), reflects the IASB's and IFAC's shared conviction that the transparency provided by high quality financial reporting standards contributes significantly to the effective functioning of capital markets and to sound economic growth. The agreement represents a further commitment to strengthening the co–operation between the two boards, with the aim of ensuring greater consistency in their respective standard-setting activities.
The MoU also acknowledges the on–going working relationship between the IASB and the International Auditing and Assurance Standards Board (IAASB), which is also supported by IFAC. As part of this relationship, the IAASB seeks to advise the IASB on issues surrounding the verifiability and auditability of proposed accounting standards.
The agreement is consistent with the conclusions of the IFRS Foundation Trustees' strategy review, which called for greater interaction between the IASB and other accounting standard-setting authorities.