International Accounting Standards Committee Foundation (IASCF)

Definition

The International Accounting Standards Committee Foundation (IASCF) was the principal organization responsible for overseeing the International Accounting Standards Board (IASB) until the end of 2010. The IASCF was established to promote the use and rigorous application of International Financial Reporting Standards (IFRS) and to bring about convergence of national accounting standards and IFRS.

In 2010, the organization was restructured and renamed the International Financial Reporting Standards (IFRS) Foundation. The IFRS Foundation continues the mission of the IASCF, supporting the independent standard-setting work of the IASB.

Examples

Development of IFRS 15 “Revenue from Contracts with Customers”: Under the oversight of the IASCF (and later IFRS Foundation), the IASB issued IFRS 15, which provides a comprehensive framework for revenue recognition and aims to bring greater consistency across industries and geographical boundaries.
Implementation of IFRS 9 “Financial Instruments”: The development of IFRS 9, which addresses the classification, measurement, impairment, and hedge accounting of financial instruments, was another major milestone achieved under the jurisdiction of the IASCF/IFRS Foundation.

Frequently Asked Questions

What was the primary purpose of the IASCF?

The primary purpose of the IASCF was to develop and promote the use of a single set of high-quality global accounting standards known as International Financial Reporting Standards (IFRS) through the work of the IASB.

How did the IASCF transition to the IFRS Foundation?

In 2010, the IASCF was restructured and renamed the IFRS Foundation to better reflect its mission and global scope. This transition aimed to enhance governance and accountability while maintaining the independence of standard-setting.

What is the role of the IFRS Foundation today?

The IFRS Foundation’s role today includes overseeing the IASB, ensuring that the development of IFRS is conducted transparently and objectively, and promoting the consistent application of IFRS globally.

How do IFRS Standards benefit global financial markets?

IFRS Standards improve the comparability, transparency, and reliability of financial statements, which can boost investor confidence and facilitate cross-border investment and trade.

International Accounting Standards Board (IASB)

The IASB is an independent, privately-funded accounting standard-setting body that develops and approves International Financial Reporting Standards (IFRS).

International Financial Reporting Standards (IFRS)

IFRS are a set of accounting standards developed by the IASB that aim to bring consistency, transparency, and accountability to financial statements globally.

Financial Reporting

Financial reporting is the communication of financial information, including financial statements, to users such as shareholders, creditors, and regulators.

Online References

Suggested Books for Further Studies

“International Financial Reporting Standards (IFRS) 2016: Official Pronouncements” by IFRS Foundation
“Applying IFRS Standards” by Ruth Picker, Ken J Leo, Janice Loftus, Victoria Wise, and Kerry Clark
“IFRS: A Quick Reference Guide” by Robert Kirk

Accounting Basics: International Accounting Standards Committee Foundation Fundamentals Quiz

### What was the primary objective of the International Accounting Standards Committee Foundation (IASCF)? - [x] To develop a single set of high-quality, understandable, and enforceable international financial reporting standards. - [ ] To regulate financial markets globally. - [ ] To oversee national tax policies. - [ ] To replace all national accounting standards boards. > **Explanation:** The primary objective of the IASCF was to develop a single set of high-quality, understandable, and enforceable international financial reporting standards through the IASB. ### When was the IASCF restructured and renamed the IFRS Foundation? - [ ] 2005 - [ ] 2008 - [x] 2010 - [ ] 2012 > **Explanation:** The IASCF was restructured and renamed the IFRS Foundation in 2010 to better reflect its mission and scope. ### Which body was responsible for setting the standards under the IASCF? - [ ] International Financial Market Association - [ ] National Accounting Standards Board - [x] International Accounting Standards Board (IASB) - [ ] European Financial Reporting Commission > **Explanation:** The IASB was the standard-setting body responsible for issuing IFRS under the oversight of the IASCF. ### How do IFRS Standards benefit global investors? - [x] By improving comparability and transparency of financial statements. - [ ] By reducing tax liabilities. - [ ] By ensuring inflation-adjusted returns. - [ ] By providing local currency exchange rates. > **Explanation:** IFRS Standards benefit global investors by improving the comparability and transparency of financial statements, thereby boosting investor confidence. ### What name did the IASCF adopt after restructuring in 2010? - [ ] International Accounting Standards Foundation - [ ] Global Financial Reporting Foundation - [x] IFRS Foundation - [ ] World Financial Standards Board > **Explanation:** After restructuring in 2010, the IASCF adopted the name IFRS Foundation. ### What does IFRS 15 standardize? - [ ] Tax reporting - [ ] Market valuations - [x] Revenue recognition - [ ] Corporate governance > **Explanation:** IFRS 15 standardizes the principles for revenue recognition, providing a comprehensive framework for how and when revenue is recognized. ### Under what organization does the IFRS Foundation operate? - [x] As a private-sector, independent body. - [ ] As a government regulatory agency. - [ ] Under the United Nations. - [ ] Under the European Union. > **Explanation:** The IFRS Foundation operates as a private-sector, independent body tasked with developing global accounting standards. ### Why was the name change to IFRS Foundation significant in 2010? - [ ] It marked the creation of a new organization. - [ ] It shifted focus from European to global standards. - [ ] It signaled a new HQ location. - [x] It better reflected the mission and global scope of the organization. > **Explanation:** The name change to IFRS Foundation in 2010 was significant because it better reflected the mission and global scope of the organization. ### What aspect of finance does IFRS particularly aim to improve? - [ ] Local tax procedures - [ ] Short-term investment returns - [x] Financial statement comparability and transparency - [ ] Currency exchange policies > **Explanation:** IFRS aims to improve the comparability and transparency of financial statements, which is essential for investors and other stakeholders. ### Which of these bodies succeeded the IASCF? - [ ] International Monetary Fund (IMF) - [ ] World Bank Group - [x] IFRS Foundation - [ ] OECD Financial Standards Committee > **Explanation:** The IFRS Foundation succeeded the IASCF following the restructuring in 2010.

Thank you for exploring the fundamentals of the International Accounting Standards Committee Foundation (IASCF) and related concepts through our detailed article and challenging quiz questions. Keep building on your accounting knowledge!