INTRODUCTION
International Financial Reporting Standards (IFRSs) are an integral part of the global financial reporting landscape. They provide a common language for businesses to report their financial results, making it easier for investors, regulators, and other stakeholders to compare financial information across different companies and countries.
ROLE Of IASB
The IASB plays a crucial role in the development and publication of IFRSs. Its primary objective is to enhance the quality and comparability of financial information by establishing and improving financial accounting and reporting standards. The IASB is independent and operates on a private-sector basis, which allows it to make decisions without being influenced by political or national interests.
The IASB's due process is transparent and inclusive, and it involves extensive consultation with stakeholders, including investors, preparers, auditors, regulators, and academics. This due process helps to ensure that the IFRSs reflect the needs of the different stakeholders and are relevant and useful for financial reporting.
The IASB works to promote the use and application of IFRSs by providing guidance, training, and support to stakeholders. It also fosters cooperation and coordination with national and regional standard-setting organizations, and works with the IFAC to promote the development of high-quality accounting standards globally.
The use of IFRSs has several benefits for businesses and the global economy. It enhances the trust and confidence of investors and other stakeholders in financial reporting by providing a common language for financial information. It also helps to reduce the cost of capital by making it easier for companies to access global capital markets. In addition, it helps to improve the efficiency of cross-border transactions by reducing the need for reconciliation of financial information.
CONCLUSION
the role of IASB in the development and publication of IFRSs is critical for the global economy. The IASB's independent and transparent due process, extensive consultation with stakeholders, and promotion of the use and application of IFRSs help to ensure that financial reporting is of high quality and provides relevant information to stakeholders. The IFRSs play a vital role in promoting transparency, comparability, and trust in financial reporting, which contributes to the stability and growth of the global economy.