Chapter 2

International Financial Reporting:

Institutional Framework and Standards

Glossary

Accounting Standards Advisory Forum (ASAF)

Established in early 2013 by the IFRS Foundation to improve cooperation among
worldwide standard setters and advise the IASB as it develops IFRS.

Accounting Standards Board (ASB)

The predecessor UK accounting standard setting body until 2 July 2012. On this date
responsibility for UK financial reporting standard setting was taken over by the
Financial Reporting Council (FRC).

Comparative figures
Prior year figures that are included in financial statements so that current year results
can be easily compared to the previous year’s figures.

Conceptual framework of accounting

A set of broad, internally consistent fundamentals and definitions of key terms.

Discussion Paper (DP)

Sometimes the first step in the standard setting process. A discussion paper is an
initial document which highlights the issues and potential treatments for an
accounting issue. It is prepared by the IASB and distributed for public consultation to
various interested parties.

Exposure Draft (ED)

A draft of the proposed standard. This document will contain feedback received from
the Discussion Paper process. The exposure draft is reissued to interested parties
and the general public for further comment.

Fair value
The amount that an entity would expect to receive for an asset in an arm’s length

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transaction between two unconnected parties.

Financial Accounting Standards Board (FASB)

The body that prepares and issues US financial accounting standards of
recommended accounting treatments and disclosures for accounting transactions.

Financial Reporting Council (FRC)

An independent regulator that aims to promote confidence in corporate reporting and
governance. This body has overall responsibility for standard setting in the UK.

Financial Reporting Standards (FRS)

Accounting standards issued by the FRC.

International Accounting Standard (IAS)

Publications issued by the IASB (formerly the IASC) detailing the recommended
standard accounting treatment and disclosures for specific accounting
transactions/elements.

International Accounting Standards Board (IASB)

An independent international standard-setting board, appointed and overseen by a
geographically and professionally diverse group of Trustees (IFRS Foundation) that
are accountable to the Monitoring Board of Public and Capital Market Authorities.
The ISAB adopted the IASC’s IAS and issues international financial reporting
standards (IFRS).

International Accounting Standards Committee (IASC)

Predecessor to the IASB. The IASC was an international accounting standard
setting body which operated from 1973 to 2001. It issued the International
Accounting Standards (IAS). It was governed by representatives from some of its
member countries.

International Financial Reporting Standard (IFRS)

These are international standards that are issued by the IASB on a variety of issues
(accounting treatments, measurement and recognition) that impact on financial
reporting statements.

IFRS Advisory Council (IFRSAC)

A forum for the IASB to consult a wide range of representatives from user groups,

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preparers, financial analysts, academics, auditors, regulators and professional
accounting bodies that are affected by and interested in the IASB’s work. This body
replaced the Standards Advisory Council (SAC) on 1 st March 2010.

IFRS for SMEs

A separate IFRS that was issued by the IASB in July 2009 to cater for the needs of
smaller entities that deemed full IFRSs to be too onerous and inappropriate for their
needs. It is based on the same principles as full IFRS, however, contains certain
omissions, simplifications, reduced disclosures and has been written for clarity.

IFRS Foundation Support Operations

Aims to promote and support the worldwide use of IFRS, the IFRS Foundation and a
number of support initiatives (such as XBRL reporting).

IFRS Foundation Trustees

The legal entity under which the IASB operates. This is the parent company. It was
formerly known as the International Accounting Standards Committee Foundation
(IASCF)

IFRS Interpretations Committee

The interpretive body of the IFRS Foundation Trustees. This body issues guidance
on newly identified financial reporting issues not specifically dealt with in IFRSs; and
issues where unsatisfactory or conflicting interpretations have developed, or seem
likely to develop in the absence of authoritative guidance.

Monitoring Board of Public and Capital Market Authorities

The IFRS Foundation Trustees are accountable to the Monitoring Board. The Board
promotes the work of the IFRS Foundation Trustees and appoints the Trustees.

SME Implementation Group (SMEIG)

Set up by the IASB to support the international adoption of IFRS for SMEs.

Statements of Financial Accounting Standards (SFAS)

Standards issued by the American standard setting body, the Financial Accounting
Standards Board (FASB). These contain the recommended accounting treatment, in
America, for a variety of transactions/elements.

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Statement of Standard Accounting Practice (SSAP)
Accounting Standards issued by the ASC (predecessor to the ASB and the FRC).
These standards are no longer in existence.

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