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ACCA Applied Skills · Financial Reporting · Regulatory framework

Which of the following best describes the primary role of the IFRS Interpretations Committee in the IFRS regulatory structure?

The IFRS Interpretations Committee provides timely guidance on newly identified reporting issues that IFRS Accounting Standards do not specifically address. It does not issue standards, which is the IASB's role, nor appoint board members or enforce compliance, which fall to the Trustees and national regulators.

  1. AIssuing new IFRS Accounting Standards after public consultation
  2. BProviding timely guidance on newly identified financial reporting issues not specifically addressed in IFRS Accounting StandardsCorrect
  3. CMonitoring and enforcing compliance with IFRS Accounting Standards by listed entities
  4. DAppointing the members of the IASB and approving its budget

Explanation

The IFRS Interpretations Committee reviews widespread accounting issues and provides interpretive guidance or recommends narrow-scope amendments. Issuing standards is the IASB's role, and appointing members and overseeing funding is the role of the IFRS Foundation Trustees. Enforcement is carried out by national regulators, not the Committee.

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