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ACCA Applied Knowledge · Financial Accounting · The regulatory framework

Which of the following is the correct role of the IFRS Advisory Council in the standard-setting structure?

The IFRS Advisory Council advises the IASB on agenda priorities and on the views of organisations and individuals affected by standards. It does not issue interpretations, appoint IASB members, or enforce compliance, which belong to the Interpretations Committee, the Trustees and national regulators respectively.

  1. AIt issues authoritative interpretations of existing standards
  2. BIt appoints the members of the IASB and raises funding
  3. CIt advises the IASB on agenda priorities and the views of affected partiesCorrect
  4. DIt enforces compliance with IFRS in each country

Explanation

The Advisory Council is a forum giving the IASB advice on its work programme and on the views of organisations and individuals affected by standards. Appointing members and funding are Trustee functions. Interpretations come from the Interpretations Committee, and enforcement is by national regulators.

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