Question

Why is the IFRS set by the International Accounting Standards Board (IASB) not compulsory for the member countries of IASB?

Answer 1

IFRS set by the International Accounting Standards Board (IASB) not compulsory for the member countries of IASB since:-

The International Accounting Standards Board (IASB) is an independent, private-sector body that develops and approves International Financial Reporting Standards (IFRSs). The IASB operates under the oversight of the IFRS Foundation. The IASB was formed in 2001 to replace the International Accounting Standards Committee (IASC).

Currently, the IASB has 14 members.

Under the IFRS Foundation Constitution, the IASB has complete responsibility for all technical matters of the IFRS Foundation including:

• full discretion in developing and pursuing its technical agenda, subject to certain consultation requirements with the Trustees and the public
• the preparation and issuing of IFRSs (other than Interpretations) and exposure drafts, following the due process stipulated in the Constitution
• the approval and issuing of Interpretations developed by the IFRS Interpretations Committee.