Financial Accounting · The regulatory framework

IFRS Foundation, IASB, IFRIC and Advisory Council Roles

Updated 11 October 2026 · Fact-checked

IFRS Accounting Standards are issued by the IASB, which is overseen and funded by the IFRS Foundation. The IFRS Interpretations Committee (IFRIC) clarifies how standards apply in practice. The IFRS Advisory Council gives advice and input from stakeholders. To answer exam questions, match each body to its single main role.

Understand The Standard-Setting Structure: IFRS Foundation, IASB, IFRIC, IFRS AC

IFRS Accounting Standards are the rules many countries use for company financial statements. Someone has to write them, check how they work in practice, and make sure the process is fair and funded. Four bodies share these jobs.

The IFRS Foundation is the parent. It is an independent, not-for-profit organisation. It does not write standards itself. It appoints the members of the IASB, the Interpretations Committee and the Advisory Council, oversees their work, and raises the funding. Think of it as the governing and oversight body.

The IASB (International Accounting Standards Board) is the standard-setting body. It develops and issues IFRS Accounting Standards. It is the only one of the four that actually issues new standards or amends existing ones. It follows a due process that includes consulting the public.

The IFRS Interpretations Committee (IFRIC) deals with problems that arise when standards are applied. It reviews widespread accounting issues where practice differs or the standard is unclear, and it issues guidance called IFRIC Interpretations. Interpretations are approved by the IASB. Think of IFRIC as the helpdesk for existing standards, not a writer of new ones.

The IFRS Advisory Council is the formal forum for stakeholders. Its members come from many countries and backgrounds, such as preparers, users, auditors and regulators. It advises the IASB on its agenda and priorities, on its work plan, and on the effect of proposals on those affected. It advises. It does not set standards and it does not approve them.

Key formulas to remember

IFRS Foundation: Oversight + governance + funding; Appoints members of the IASB, IFRIC and Advisory Council. Does not issue standards.
IASB: Develops and issues IFRS Accounting Standards; The standard-setter. It uses due process and public consultation.
IFRS Interpretations Committee (IFRIC): Interprets existing standards and issues IFRIC Interpretations; Deals with application issues where practice varies or wording is unclear. Interpretations are approved by the IASB.
IFRS Advisory Council: Advises the IASB and the Foundation; Strategic input from a wide range of stakeholders. No power to issue or approve standards.

How to solve The Standard-Setting Structure: IFRS Foundation, IASB, IFRIC, IFRS AC questions

Use this method for any question asking who does what in the IFRS structure.

1Read the question and underline the action word: oversee, fund, appoint, issue, interpret, advise.
2Match the action word to a body. Oversee, fund or appoint points to the IFRS Foundation. Issue or develop standards points to the IASB. Interpret or clarify points to IFRIC. Advise or represent stakeholders points to the Advisory Council.
3Check whether the question is about a new or amended standard (IASB) or about applying an existing one (IFRIC).
4Watch for words like only, main or not. A body may do several things, but one is its main role.
5Eliminate options that give a body a power it does not have, such as the Advisory Council issuing standards or the Foundation writing them.
6Pick the remaining option and re-read the question once to confirm.

Quickest way: One-word memory link for each body

When to use it: Use this in Section A objective test questions when you have under a minute per question.

Foundation = Funds and appoints (oversight).
IASB = Issues standards.
IFRIC = Interprets standards.
Advisory Council = Advises.
Spot the verb in the question, pick the matching body, and move on.

Common mistakes in The Standard-Setting Structure: IFRS Foundation, IASB, IFRIC, IFRS AC

Saying the IFRS Foundation issues IFRS Accounting Standards.
The name contains IFRS, so it sounds like the author of the standards.
Fix: Remember the Foundation oversees and funds. The IASB is the body that issues standards.
Saying the IFRS Interpretations Committee writes new standards.
Students see it as a smaller version of the IASB.
Fix: IFRIC only clarifies the application of existing standards and issues Interpretations, which the IASB approves.
Thinking the Advisory Council approves or vetoes standards.
Words like council suggest decision-making power.
Fix: It is advisory only. Its role is to give the IASB input from stakeholders.
Confusing the old names of bodies, such as IASC or SIC, with the current ones.
Older textbooks and websites use earlier names.
Fix: Use the current names: IFRS Foundation, IASB, IFRS Interpretations Committee and IFRS Advisory Council.
Choosing an option where one body does everything.
Students try to simplify the structure into one organisation.
Fix: Keep the roles separate: oversight, standard-setting, interpretation and advice.

Worked examples

Example 1

Which body is responsible for developing and issuing IFRS Accounting Standards? A) IFRS Foundation B) IASB C) IFRS Advisory Council D) IFRS Interpretations Committee

Show the solution

The key words are developing and issuing standards.
The IFRS Foundation oversees and funds, so A is wrong.
The Advisory Council only advises, so C is wrong.
IFRIC clarifies existing standards, so D is wrong.
The IASB is the standard-setting body.

Answer: B) IASB

Example 2

Practice differs between companies on how to apply an existing standard to a new type of transaction. Which body would normally consider the issue and publish guidance? A) IASB acting alone to replace the standard B) IFRS Foundation C) IFRS Interpretations Committee D) IFRS Advisory Council

Show the solution

The issue is about applying an existing standard where practice varies.
That is the job of the IFRS Interpretations Committee.
The Foundation only oversees and funds, so B is wrong.
The Advisory Council only advises on strategy and priorities, so D is wrong.
Replacing the standard would be a new standard-setting project, which is not what the question describes, so A is wrong.

Answer: C) IFRS Interpretations Committee

Exam tips

Match the verb in the question to the body: oversee or fund, issue, interpret, advise.
In multiple response questions, select exactly the stated number and check each option against one role only.
Be careful with distractors that give a body a power it lacks, especially the Advisory Council and the Foundation.
Do not spend long on this topic. Questions are usually short and rewarded as quick marks in Section A.
Use the current names of the bodies, since options may include outdated names as traps.

Practice questions from The regulatory framework

The Standard-Setting Structure: IFRS Foundation, IASB, IFRIC, IFRS AC in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

The Standard-Setting Structure: IFRS Foundation, IASB, IFRIC, IFRS AC: frequently asked questions

Who issues IFRS Accounting Standards?

The IASB develops and issues them. The IFRS Foundation oversees the IASB and arranges funding. Standards are developed through due process, including public consultation.

What is the difference between the IASB and the IFRS Interpretations Committee?

The IASB issues and amends standards. The Interpretations Committee clarifies how existing standards apply when practice is unclear or varies. Its Interpretations are approved by the IASB.

What does the IFRS Advisory Council do?

It is a forum for stakeholders from many countries and backgrounds. It advises the IASB on its agenda, priorities and the effects of proposals. It cannot issue or approve standards.

Does the IFRS Foundation write standards?

No. It is the independent not-for-profit parent that appoints members of the other bodies, oversees their work and raises funding. Standard-setting is the IASB's job.