The IFRS foundation is the oversight body of the various boards/committees such as the IASB, IFRS, interpretation committee and so forth. It is an independent, non for profit private sector organization working working in public interest.Its principle objectives include:
- To develop single set of high quality, understandable, enforceable and globally accepted international financial reporting standards (IFRS) through its standard setting body, the IASB;
- To promote the use and rigorous application of these standards;
- To take account of the financial reporting needs of the emerging economies and small and medium sized entities (SMEs); and
- To promote and facilitate adoption of IFRSs, being the standards and interpretation issued by the IASB, through the convergence of national accounting standards and IFRSs.
The governance and oversight of the activities undertaken by the IFRS foundation and its standard setting body rest with its twenty trustees, who are also responsible for the safeguarding the independence of IASB, appointments to the various bodies and committees and ensuring the financing of the organization. The trustees are publicly accountable to the monitoring board of public authorities. The trustees promote the work of the International Accounting Standard Board (IASB) and the rigorous application of IFRSs but are not involved in any technical matters relating t standards. This responsibility rests solely with the IASB.
Trustees are appointed for renewable terms of three years. Each trustee is expected to have an understanding of, and sensitive to , international issues relevant to the success to the international organization responsible for development of high quality global accounting standards for the use in world’s capital markets and by other users.
Six of trustees must be selected from the Asia/Oceania regions, six from Europe, six from North America, one from Africa, one from South America and the two from the rest of the world.
The goal of IFRS Foundation to develop a single set of high quality, understandable, enforceable and globally accepted financial reporting standards is achieved through the following:
- Collaboration efforts with the world wide standard setting community;
- A thorough, open, participatory and transparent due process in arriving at financial reporting standards;
- Engagement with investors, regulators, business leaders and the global accountancy profession at every stage of the process;
- An independent standard setting board (IASB) overseen by geographically and professionally diverse body of trustees, publicly accountable to monitoring board of public capital market authorities;
- Supported by external IFRS Advisory Council and IFRS Interpretation Committee to offer guidance where the divergence in practice occurs.