ACCA Applied Knowledge · Financial Accounting · The regulatory framework
What is the main role of the IFRS Interpretations Committee?
The IFRS Interpretations Committee provides guidance on newly identified reporting issues that the standards do not specifically address, helping achieve consistent application. It does not appoint IASB members, fund the Foundation or enforce compliance, which are handled by the Trustees and national regulators.
- ATo appoint the members of the IASB
- BTo provide timely guidance on newly identified financial reporting issues not specifically addressed in IFRS Accounting StandardsCorrect
- CTo fund the IFRS Foundation through national levies
- DTo enforce compliance with IFRS by imposing fines on companies
Explanation
The Committee reviews widespread accounting issues where divergent practice has arisen or might arise, and issues interpretations or agenda decisions. Appointing IASB members is a Trustees' function, and enforcement is carried out by national regulators, not the Committee.
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