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ACCA Applied Knowledge · Financial Accounting · The regulatory framework

Which of the following correctly describes the role of the IFRS Interpretations Committee (IFRIC) within the IFRS Foundation structure?

The IFRS Interpretations Committee provides timely guidance on newly identified financial reporting issues that the IFRS Accounting Standards do not specifically address or where diverse practice has emerged. Appointing IASB members and funding are Foundation trustee roles, while strategic advice is given by the Advisory Council.

  1. AIt appoints the members of the IASB and monitors their performance
  2. BIt provides timely guidance on newly identified financial reporting issues not specifically addressed in IFRS Accounting StandardsCorrect
  3. CIt provides strategic advice to the IASB and represents the views of the wider user community
  4. DIt raises funds to finance the work of the IASB and oversees its due process

Explanation

IFRIC reviews widespread accounting issues that arise where the Standards are unclear or silent and issues interpretations or agenda decisions. Appointing IASB members and overseeing funding belong to the IFRS Foundation trustees, while strategic advice to the IASB from a wide user base is the role of the IFRS Advisory Council.

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