One of the essential organisations in the accounting world is The International Financial Reporting Standards Foundation (IFRS).
The IFRS Foundation, as seen on its website, is a non-profit public interest organisation created to develop a single set of high-quality, understandable, applicable, and globally accepted accounting and sustainability disclosure standards (known as the IFRS Standards) to promote and facilitate the adoption of the standards.
Two standard-setting boards develop the above standards the International Accounting Standards Board (IASB) and the International Sustainability Standards Board (ISSB), the latter of which has only recently been established. The configuration allows the IASB to set the IFRS Accounting Standards and the ISSB to work on the IFRS Sustainability Disclosure Standards. The IFRS Accounting Standards set out how a company prepares its financial statements. In contrast, the IFRS Sustainability Disclosure Standards set out how an organisation discloses information about sustainability-related factors that can help or hinder an organisation’s value creation.
The work between the IASB and the ISSB is carried out in close cooperation to ensure that their Standards complement each other to provide investors with transparent and reliable information about a company’s financial condition and performance, as well as information about sustainability factors that could create or erode its short, medium and long-term enterprise value.
In addition to the standard-setting boards and within the institutional structure, IFRS has the IFRS Foundation Monitoring Board and the IFRS Foundation Trustees, which, together with the Strategic Advisory Groups, make up the structure of the Foundation. It is important to note that we find the IASB Advisory Groups and the ISSB Advisory Groups within the Strategic Advisory Groups. While the former is formed as shown below, the configuration of the ISSB Advisory Groups has not yet been defined, as work is currently in progress.
IASB Advisory Groups
- Accounting Standards Advisory Council
- Capital Market Advisory Council
- Global Preparer Forum
- Islamic Financing Consultative Group
- Emerging Economies Group
- SME Implementation Group
- IFRS Taxonomy Consultative Group
Transitional Resources Groups
- TRG IFRS 17 Insurance Contracts
- Consultative Group for Rate Regulation