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ACCA Applied Knowledge · Financial Accounting · The regulatory framework

Which statement about the IFRS Advisory Council is correct?

The IFRS Advisory Council is a forum that advises the IASB and Trustees on agenda priorities and the implications of proposed standards for stakeholders. It does not approve standards, issue interpretations or enforce compliance, so the other options describe roles of different bodies.

  1. AIt approves each new IFRS Accounting Standard before issue
  2. BIt is a forum giving the IASB advice on priorities, agenda decisions and the views of organisations and individuals affected by standardsCorrect
  3. CIt issues interpretations of existing standards
  4. DIt prosecutes companies that breach IFRS

Explanation

The Advisory Council is a strategic advisory body to the IASB and Trustees, representing diverse stakeholders. It has no power to approve standards, issue interpretations or take enforcement action.

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