ACCA Applied Knowledge · Financial Accounting · The regulatory framework
Which statement best describes the role of the IFRS Interpretations Committee?
The IFRS Interpretations Committee provides guidance on newly identified reporting issues where divergent or unacceptable practices have developed in applying IFRS. It does not appoint IASB members, arrange funding or enforce compliance, since those are functions of the Trustees and national regulators.
- AIt issues guidance on newly identified financial reporting issues where divergent or unacceptable practices have arisenCorrect
- BIt appoints the members of the IASB
- CIt raises funds to finance the IASB's operations
- DIt enforces compliance with IFRS by imposing fines on companies
Explanation
The Interpretations Committee reviews widespread accounting issues within the scope of IFRS and provides timely guidance where diverging or unacceptable practices exist. Appointing IASB members is done by the Trustees. Funding is a Foundation matter, and enforcement is carried out by national regulators, not the Committee.
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