Glossary
The glossary contains short definitions of terms you will find on this website and links to the relevant sections for more detailed descriptions. This includes our due process, our internal organisational structure and advisory bodies, and terminology related to our Standards and Interpretations.
Accounting Standards Advisory Forum (ASAF)
The Accounting Standards Advisory Forum (ASAF) is an advisory group to the Board, consisting of national accounting standard-setters and regional bodies with an interest in financial reporting. The principal purpose of the advisory group is to provide technical advice and feedback to the Board.
Read more: Accounting Standards Advisory Forum (ASAF)
Advisory Bodies
The Board's formal advisory bodies provide an important channel for the Board to receive input on its work and to consult interested parties from a broad range of backgrounds and geographical regions in a transparent manner.
Read more: Advisory Bodies
Adoption
When a country adopts IFRS Standards, it is often necessary to publish the Standards in the official gazette, and allow them to be freely accessed and distributed. The IFRS Foundation recognises this, and will work with the entity that has the legal authority to set financial reporting standards to ensure that copyright restrictions on the material adopted do not prevent the adoption of IFRS Standards.
Read more: Adoption and copyright
Agenda Decision
The Board, by developing high quality accounting standards, seeks to address a demand for better-quality information that is of value to all users of financial statements. Better-quality information will also be of value to preparers of financial statements.
Read more: Agenda Decision
Board
See the International Accounting Standards Board (the Board).
Read more: Members of the IASB
Capital Markets Advisory Committee (CMAC)
CMAC, formerly the Analyst Representative Group (ARG), was created as a body that would be independent of the Board and the IFRS Foundation, with the specific aim to provide the Board with regular input from the international community of users of financial statements.
Read more: Capital Markets Advisory Committee (CMAC)
Comment letter
The Board follows a thorough, open and transparent due process of which the publication of consultative documents, such as Discussion Papers and Exposure Drafts, for public comment is an important component.
Read more: Open for comment
Constitution
The IFRS Foundation and its independent standard-setting body, the IASB, provide public accountability through the transparency of their work, the consultation with the full range of interested parties in the standard-setting process, and their formal accountability links to the public.
Read more: Constitution
Consultative groups
Consultative groups give the Board access to additional practical experience and expertise. The Board normally establishes consultative groups for its major projects.
Consultative group for Rate Regulation
In April 2013 the Board established a consultative group to help in its project on rate regulation by providing a variety of expert perspectives, including those of preparers, auditors and users of financial statements, and regulators.
Read more: Consultative group for Rate Regulation
Convergence
The Board and the US Financial Accounting Standards Board (FASB) have been working together since 2002 to achieve convergence of IFRS Standards and US generally accepted accounting principles (GAAP). A common set of high quality global standards remains a priority of both the IASB and the FASB.
Read more: Convergence between IFRS Standards and US GAAP
Discussion Paper
Although a Discussion Paper is not mandatory, the Board normally publishes it as its first publication on any major new topic to explain the issue and solicit early comment from constituents.
Read more: Development and publication of a Discussion Paper
Draft Interpretation
Board members have access to all IFRS Interpretations Committee agenda papers. They are expected to comment on technical matters as the issues are being considered, particularly if they have concerns about alternatives that the Interpretations Committee is considering.
Read more: Release of a draft Interpretation
Due Process Oversight Committee (DPOC)
The Trustees of the IFRS Foundation have a committee—the DPOC—which is responsible for overseeing the due process procedures of the Board and the IFRS Interpretations Committee.
Read more: Due Process Oversight Committee (DPOC)
Due Process Handbook
The DPOC has published a Due Process Handbook which outlines the due process the Board must follow when issuing Standards and Interpretations. This is updated on a regular basis.
Read more: Due Process Handbooks
Education Initiative
The objective of the education initiative is to reinforce the IFRS Foundation’s goal of promoting the adoption and consistent application of a single set of high-quality international accounting standards.
Read more: About the IFRS Education Initiative
Effects Analysis Consultative Group
In their February 2012 report Strategy Review 2011, the Trustees of the IFRS Foundation recommended the establishment of a working group from the international community, to be chaired by the Board, to develop an agreed methodology for fieldwork (including field testing and visits) and effect analyses.
Read more: About the Effects Analysis Consultative Group
eIFRS
The online edition of IFRS Standards including IAS Standards, IFRIC Interpretations, SIC Interpretations and accompanying documents.
Read more: eIFRS
Emerging Economies Group (EEG)
The Emerging Economies Group (EEG) was created in 2011 at the direction of the IFRS Foundation Trustees, with the aim of enhancing the participation of emerging economies in the development of IFRS Standards.
Read more: Emerging Economies Group (EEG)
Expert Advisory Panel (Impairment of Financial Assets)
The Board has formed an Expert Advisory Panel to address some of the operational challenges of an expected cash flow approach.
Read more: Expert Advisory Panel (Impairment of Financial Assets)
Exposure Draft
Publication of an Exposure Draft is a mandatory step in the due process of producing a Standard or an Interpretation.
Read more: Development and publication of an Exposure Draft
Financial Crisis Advisory Group
Set up in 2008, the advisory group considered how improvements in financial reporting could help enhance investor confidence in financial markets. The advisory group also helped identify significant accounting issues that require the urgent and immediate attention of the FASB and the IASB, as well as issues for longer-term consideration.
Read more: Financial Crisis Advisory Group
Financial Instruments Working Group
The Financial Instruments Working Group will help the Board to take a fresh look at the accounting standard IAS 39 Financial Instruments: Recognition and Measurement by examining and questioning the fundamentals of the Standard within the context of the Board’s Framework.
Read more: Financial Instruments Working Group
Global Preparers Forum (GPF)
The Global Preparers Forum (GPF) is an independent body with members drawn from a variety of industry and geographical backgrounds. It has been sponsored by a number of international or national preparer organisations specifically to provide the Board with input from the international preparer community. Its members have considerable practical experience of financial reporting and are established commentators on accounting matters in their own right or through working with representative bodies in which they are involved.
Read more: Global Preparers Forum (GPF)
IASB Update
The IASB Update is a staff summary of the tentative decisions reached by the Board in its public meetings.
Read more: Board Update
IFRIC Update
IFRIC Update is the newsletter of the IFRS Interpretations Committee (IFRS IC), summarising decisions made at IFRS IC meetings.
Read more: IFRIC Update
IFRS Advisory Council
The IFRS Advisory Council is the formal advisory body to the Board and the Trustees of the IFRS Foundation. It is comprised of a wide range of representatives from user groups, preparers, financial analysts, academics, auditors, regulators, professional accounting bodies and investor groups that are affected by and interested in the Board's work. Members of the Advisory Council are appointed by the Trustees.
Read more: IFRS Advisory Council
IFRS for SMEs Standard
The IFRS for SMEs Standard is a self-contained standard, designed to meet the needs and capabilities of small and medium-sized entities (SMEs), which are estimated to account for more than 95 per cent of all companies around the world. The SMEs Standard was first issued in 2009, and a comprehensive review was begun in 2012 which resulted in limited amendments to the SMEs Standard which were issued in 2015.
Read more: About the IFRS for SMEs Standard
IFRS Interpretations Committee (formerly IFRIC)
The IFRS Interpretations Committee comprises 14 voting members drawn from a variety of countries and professional backgrounds.
Read more: Members of the IFRS Interpretations Committee (formerly IFRIC)
IFRS Taxonomy Consultative Group (ITCG)
The aim of using a single, high quality, easily enforceable and globally accepted IFRS Taxonomy to mark up digital reports is to facilitate the efficient dissemination, processing and accessing of financial statements. The ITCG meets to further this aim.
Read more: About the IFRS Taxonomy Consultative Group (ITCG)
Insurance Working Group
The Board established a working group to help it analyse accounting issues relating to insurance contracts. The group brings together a wide range of interests and includes senior financial executives who are involved in financial reporting.
Read more: Insurance Working Group
International Financial Reporting Standards (IFRS Standards)
IFRS Standards are designed as a common global language for business affairs so that company accounts are understandable and comparable across international boundaries. They are a consequence of growing international shareholding and trade and are particularly important for companies that have dealings in several countries. They are progressively replacing the many different national accounting standards. The rules to be followed by accountants to maintain books of accounts which is comparable, understandable, reliable and relevant as per the users internal or external. (Wikipedia)
Read more: What are IFRS?
International Accounting Standards Board (the Board)
The Board is an independent group of up to 14 experts with an appropriate mix of recent practical experience in setting accounting standards, in preparing, auditing, or using financial reports, and in accounting education. Broad geographical diversity is also required.
Read more: Members of the Board
Interpretations
IFRIC Interpretations (and SIC Interpretations, which were developed before 2001) are developed in accordance with a due process of consultation and debate, including making draft Interpretations available for public comment.
Read more: Interpretations
Investor Resources
IFRS Standards are aimed at ensuring that financial statements provide information that existing and potential investors and other capital providers need to make capital allocation decisions. Although investor priorities might not be the standard-setting process, it is important that the Board gets investor input because the results of projects will ultimately influence the information that investors get from financial statements. So that we can better meet investor needs, the aim is to make it as easy as possible for investors to provide input on our work. Detailed accounting background or knowledge is not a requirement to speak to us about or provide feedback on our projects and proposals.
Read more: Investor Resources
Leases Accounting Working Group
A working group created in order to facilitate the creation of IFRS 16 Leases.
Read more: Leases Accounting Working Group
Meetings Diary
The events calendar lists forthcoming public events of the IFRS Foundation, the Board and the IFRS Interpretations Committee, including their regular meetings, conferences and meetings of working groups or other formal advisory bodies such as the IFRS Advisory Council. Meeting pages also contains information such as the agenda, agenda papers and venue address, as well as the offering the ability to register as an observer or to access the live webcast of the meetings.
Read more: Calendar of public events
Monitoring Board
At the Trustees' meeting in New Delhi, India, on 15 and 16 January 2009, the decision was made to enhance the organisation's public accountability by establishing a link to a Monitoring Board of public authorities. The Monitoring Board has oversight of the Trustees of the IFRS Foundation.
Read more: Monitoring Board
Open for comment
The Board follows a thorough, open and transparent due process of which the publication of consultative documents, such as Discussion Papers and Exposure Drafts, for public comment is an important component.
Read more: Open for comment
Outreach activities
We undertake a range of outreach and stakeholder communication activities to inform and educate, to explain and clarify our proposals and to provide opportunities for interested parties to discuss and debate them with us. These activities supplement our formal due process events such as round-table meetings.
Read more: Project-related outreach and stakeholder engagement activities
Podcasts
We provide audio summaries of Board meetings, project updates and other useful information. These provide a high-level overview of the topic.
Read more: Podcast summaries
Policies
The IFRS Foundation has adopted a set of policies and guidance statements that are designed to ensure that the organisation operates in a way that meets or exceeds the requirements of public interest, meets all legal requirements, and has an overall beneficial impact on the environment.
Read more: IFRS Foundation Policies
Post-implementation Review (PIR)
The Board carries out a post-implementation review of each new IFRS Standard or major amendment. This is normally carried out two years after the new requirements have become mandatory and been implemented. Such reviews are normally limited to important issues identified as contentious during the development of the pronouncement and consideration of any unexpected costs or implementation problems encountered.
Read more: Post-implementation Reviews
Rate-regulated Activities Consultative Group
The Board has established the group to help in its project on rate regulation by providing a variety of expert perspectives, including those of preparers, auditors and users of financial statements, and regulators. The group consists of senior professionals with extensive practical experience in the operation of a variety of rate-regulatory schemes.
Read more: Rate-regulated Activities Consultative Group
Redeliberations
Draft Interpretations are made available for public comment for not less than 60 days. All comments received during the comment period are considered by the IFRS Interpretations Committee before an IFRIC Interpretation is finalised, and this period is known as redeliberations.
Read more: Comment period and redeliberations
Shariah-Compliant Instruments and Transactions
On 2 July 2013 an inaugural meeting was held to discuss Sharia-compliant instruments and transactions. The meeting was chaired by the Board.
Read more: Shariah-Compliant Instruments and Transactions
SME Implementation Group
The mission of the SME Implementation Group is to support the international adoption of the IFRS for SMEs Standard and monitor its implementation.
Read more: SME Implementation Group
Snapshots
Snapshot documents are published by the Board and IFRS Foundation to accompany due process documents. They provide a high level summary of Board proposals.
Read more: Library of Snapshot documents
Standard (IFRS Standard)
International Financial Reporting Standards (IFRS Standards, and prior to 2001 IAS Standards) are developed through an international consultation process, the "due process", which involves interested individuals and organisations from around the world.
Read more: How we develop IFRS Standards
Strategy Review
Every five years the Trustees of the IFRS Foundation, the oversight body of the Board, undertake a review of the strategy of the IFRS Foundation. The last review was concluded in 2016.
Read more: Strategy Review
Taxonomy
Taxonomy in general means a catalogue or a set of rules for classification; in XBRL (see XBRL), a taxonomy is a dictionary, containing computer-readable definitions of business reporting terms as well relationships between them and links connecting them to human-readable resources (metadata). A typical taxonomy consists of a schema (or schemas) and linkbases; a set of taxonomies that can be discovered from one entry point schema is called DTS.
Read more: XBRL and IFRS
Translations
Translation is a necessary and vital part of achieving the IFRS Foundation's mission to develop a single set of high-quality global accounting standards for use around the world. The IFRS Foundation manages all translations to ensure consistency across all jurisdictions.
Read more: The IFRS Foundation and its translation policies
Trustees
The Trustees of the IFRS Foundation provide oversight and promote the work of the Board and the rigorous application of IFRS Standards but are not involved in any technical matters relating to the standards. This responsibility rests solely with the Board.
Read more: Trustees
Unaccompanied IFRS Standards, IAS Standards, IFRIC and SIC Interpretations
The IFRS Foundation provides free of charge access to the PDF files of the current year's consolidated IFRS Standards (Part A of the ‘Red Book’), the official pronouncements in English as issued by the Board, as well as available translations of IFRS Standards. Unaccompanied Standards exclude the accompanying documents including illustrative examples, implementation guidance and bases for conclusions.
Read more: Unaccompanied IFRS Standards FAQs
Valuation expert group
As part of the IFRS Foundation’s Education Initiative, the fair value measurement team is developing educational material to support IFRS 13 Fair Value Measurement, with the assistance of subject matter experts.
Read more: Valuation expert group
Work plan
The Board work plan is the timetable for project work that details expected publication dates and other project milestones.
Read more: IASB work plan
World Standard Setters conference
Since 2002 the Board has hosted an annual conference for the world's financial reporting standard-setters.
Read more: World Standard Setters conference
XBRL
XBRL stands for eXtensible Business Reporting Language; it is an XML dialect developed for business and financial reporting purposes by a non-profit consortium XBRL International which has members from 400 companies and institutions that represent finance and IT sector organisations from all over the world.
Read more: XBRL and IFRS