Regulatory bodies

In this lesson

1. 0:00 Regulatory bodies overview
2. 0:17 IFRS Foundation governance structure
3. 0:27 International Accounting Standards Board role
4. 1:53 National standard setters collaboration
5. 3:00 Interpretations Committee and Advisory Council
6. 3:40 Advisory Council agenda-setting function

About this lesson

Understanding the IFRS Foundation, International Accounting Standards Board, Interpretations Committee, and Advisory Council is essential for papers covering financial reporting standards—particularly FR, SBR, and advanced reporting modules. You'll discover how these organisations work together to develop, implement, and refine International Financial Reporting Standards, and how national standard setters influence the process to harmonise accounting practices worldwide. The IFRS Foundation sits at the top of the regulatory hierarchy, providing overall governance and ensuring that subsidiary bodies are properly funded and functioning. Its core objective is to harmonise accounting standards globally by developing high-quality IFRS and encouraging their adoption across countries. The International Accounting Standards Board (IASB) is the operational engine—responsible for creating the actual standards and issuing the conceptual framework. Importantly, the IASB isn't autonomous; it cooperates closely with national standard setters who have representation on the board, ensuring diverse perspectives shape new standards. Two additional committees complete the structure. The Interpretations Committee monitors how well new standards are being adopted and used in practice, identifying ongoing financial reporting issues that standards don't yet adequately address. The Advisory Council operates at the strategic level, suggesting areas where new legislation is needed, setting the board's agenda, and providing a forum for organisations and individuals to contribute to the standard-setting process. Together, these bodies create a collaborative system designed to develop consistent, globally recognised accounting standards while remaining responsive to real-world reporting challenges.

Duration: 5m