INTERNATIONAL FINANCIAL REPORTING STANDARDS

(IFRS)
GLOSSARY

A
Accounting Standards Advisory Forum (ASAF)
The Accounting Standards Advisory Forum (ASAF) is an advisory group to the
International Accounting Standards Board (IASB), consisting of national accounting
standard-setters and regional bodies with an interest in financial reporting. The
principal purpose of the new advisory group is to provide technical advice and
feedback to the IASB.
Advisory Bodies
The IASB's formal advisory bodies provide an important channel for the IASB to
receive input on its work and to consult interested parties from a broad range of
backgrounds and geographical regions in a transparent manner.
Adoption
When a country adopts IFRS, it is often necessary to publish the IFRSs in the official
gazette, and allow them to be freely accessed and distributed. The IFRS Foundation
recognises this, and will work with the entity that has the legal authority to set
financial reporting standards to ensure that copyright restrictions on the material
adopted do not prevent the adoption of IFRSs.
Agenda Decision
The IASB, by developing high quality accounting standards, seeks to address a
demand for better-quality information that is of value to all users of financial
statements. Betterquality information will also be of value to preparers of financial
statements.

Board
See the International Accounting Standards Board (IASB).

C
Capital Markets Advisory Committee (CMAC)
The Capital Markets Advisory Committee (CMAC), formerly the Analyst
Representative Group (ARG), was created as a body that would be independent of
the IASB and the IFRS Foundation, with the specific aim to provide the IASB with
regular input from the international community of users of financial statements.
Comment letter
The IASB follows a thorough, open and transparent due process of which the
publication of consultative documents, such as Discussion Papers and Exposure
Drafts, for public comment is an important component
Comprehensive Review 2012-14
The IASB is conducting a comprehensive review of the IFRS for SMEs to consider
whether there is a need for any amendments to the standard.
Constitution
The IFRS Foundation and its independent standard-setting body, the IASB, provide
public accountability through the transparency of their work, the consultation with the
full range of interested parties in the standard-setting process, and their formal
accountability links to the public.
Consultative groups
Consultative groups give the International Accounting Standards Board (IASB)
access to additional practical experience and expertise. The IASB normally
establishes consultative groups for its major projects.
Consultative group for Rate Regulation
In April 2013, the IASB established a consultative group to help in its project on rate
regulation by providing a variety of expert perspectives, including those of preparers,
auditors and users of financial statements, and regulators.
Convergence
The IASB and the US Financial Accounting Standards Board (FASB) have been
working together since 2002 to achieve convergence of IFRSs and US generally
accepted accounting principles (GAAP). A common set of high quality global
standards remains a priority of both the IASB and the FASB.

D
Discussion Paper
Although a Discussion Paper is not mandatory, the IASB normally publishes it as its
first publication on any major new topic to explain the issue and solicit early
comment from constituents.
Draft Interpretation
IASB members have access to all IFRS Interpretations Committee agenda papers.
They are expected to comment on technical matters as the issues are being
considered, particularly if they have concerns about alternatives that the
Interpretations Committee is considering.
Due Process Oversight Committee (DPOC)
The Trustees of the IFRS Foundation have a committeethe DPOCwhich is
responsible for overseeing the due process procedures of the IASB and its
Interpretations Committee.
Due Process Handbook
The Trustees of the IFRS Foundation have a committeethe DPOCwhich is
responsible for overseeing the due process procedures of the IASB and its
Interpretations Committee.

E
Education Initiative
The objective of the education initiative is to reinforce the IFRS Foundations goal of
promoting the adoption and consistent application of a single set of high-quality
international accounting standards.
Effects Analysis Consultative Group
In their February 2012 report Strategy Review 2011, the Trustees of the IFRS
Foundation recommended the establishment of a working group from the
international community, to be chaired by the IASB, to develop an agreed
methodology for fieldwork (including field testing and visits) and effect analyses.
eIFRS

The online edition of International Financial Reporting Standards (IFRSs) including

International Accounting Standards (IASs), Interpretations (IFRICs/SICs) and
accompanying documents
Emerging Economies Group (EEG)
Current membership of the EEG comprises the emerging economies member
countries of the G20 and Malaysia.
Expert Advisory Panel (Impairment of Financial Assets)
The Board has formed an Expert Advisory Panel to address some of the operational
challenges of an expected cash flow approach.
Exposure Draft
Publication of an Exposure Draft is a mandatory step in due process.
F
Financial Crisis Advisory Group [concluded its work]
The advisory group considered how improvements in financial reporting could help
enhance investor confidence in financial markets. The advisory group also helped
identify significant accounting issues that require the urgent and immediate attention
of the boards, as well as issues for longer-term consideration.
Financial Instruments Working Group
The Financial Instruments Working Group will help the IASB to take a fresh look at
the accounting standard IAS 39 Financial Instruments: Recognition and
Measurement by examining and questioning the fundamentals of the standard within
the context of the IASBs Framework.
Funding the IFRS Foundation
The responsibility for the funding arrangements of the IFRS Foundation rests with its
Trustees. They approve the budget of the IFRS Foundation and determine the basis
for its funding. To enforce the organisations public accountability, the funding
requirements are also discussed with the IFRS Foundation Monitoring Board.

G
Global Preparers Forum (GPF)
The Global Preparers Forum (GPF) is an independent body with members drawn
from a variety of industry and geographical backgrounds. It has been sponsored by a
number of international or national preparer organisations specifically to provide the

IASB with input from the international preparer community. Its members have
considerable practical experience of financial reporting and are established
commentators on accounting matters in their own right or through working with
representative bodies in which they are involved.

I
IASB Update
The IASB Update is a staff summary of the tentative decisions reached by the IASB
in its public meetings.
IFRIC Update
IFRIC Update is the newsletter of the IFRS Interpretations Committee and is
published as a convenience to the IASBs constituents.
IFRS Advisory Council
The IFRS Advisory Council is the formal advisory body to the IASB and the Trustees
of the IFRS Foundation. It is comprised of a wide range of representatives from user
groups, preparers, financial analysts, academics, auditors, regulators, professional
accounting bodies and investor groups that are affected by and interested in the
IASB's work. Members of the Advisory Council are appointed by the Trustees.
IFRS for SMEs
The IFRS for SMEs is a self-contained standard of 230 pages, designed to meet the
needs and capabilities of small and medium-sized entities (SMEs), which are
estimated to account for over 95 per cent of all companies around the world.
IFRS Interpretations Committee (formerly IFRIC)
The IFRS Interpretations Committee comprises 14 voting members drawn from a
variety of countries and professional backgrounds.
IFRS Taxonomy Consultative Group (ITCG)
The aim of using a single, high quality, easily enforceable and globally accepted
IFRS Taxonomy to mark up digital reports is to facilitate the efficient dissemination,
processing and accessing of IFRS financial statements.
Insurance Working Group

The IASB has established a working group to help it analyse accounting issues
relating to insurance contracts. The group brings together a wide range of interests
and includes senior financial executives who are involved in financial reporting.
International Financial Reporting Standards (IFRS)
International Financial Reporting Standards (IFRS) are designed as a common
global language for business affairs so that company accounts are understandable
and comparable across international boundaries. They are a consequence of
growing international shareholding and trade and are particularly important for
companies that have dealings in several countries. They are progressively replacing
the many different national accounting standards. The rules to be followed by
accountants to maintain books of accounts which is comparable, understandable,
reliable and relevant as per the users internal or external. (Wikipedia)

International Accounting Standards Board (IASB)

The International Accounting Standards Board (IASB) is an independent group of 16
experts with an appropriate mix of recent practical experience in setting accounting
standards, in preparing, auditing, or using financial reports, and in accounting
education. Broad geographical diversity is also required.
Interpretations
IFRIC Interpretations are developed in accordance with a due process of
consultation and debate, including making draft Interpretations available for public
comment.
Investor Resources
International Financial Reporting Standards (IFRSs) are aimed at ensuring that
financial statements provide information that existing and potential investors and
other capital providers need to make capital allocation decisions. Although as an
investor your priority might not be the standard-setting process, it is important that
the IASB gets your input, because the results of our projects will ultimately influence
the information that you get from financial statements. So that we can better meet
your needs, we want to make it as easy as possible for you to provide input on our
work. Detailed accounting background or knowledge is not a requirement to speak to
us about or provide feedback on our projects and proposals.

L
Leases Accounting Working Group
On 19 July 2006, the IASB and the US FASB added a joint project on leasing to their
respective agendas.

M
Meetings Diary
The calendar lists forthcoming public events of the IFRS Foundation, the IASB and
the IFRS Interpretations Committee, including their regular meetings, conferences
and meetings of working groups or other formal advisory bodies such as the IFRS
Advisory Council. It also contains information such as the meeting agenda, agenda
papers and venue address, as well as details of how to register as an observer or to
access the live webcast of the meetings.
Monitoring Board
At the Trustees' meeting in New Delhi, India, on 15 and 16 January 2009 the
decision was made to enhance the organisation's public accountability by
establishing a link to a Monitoring Board of public authorities.
Micro-sized Entities
The International Accounting Standards Board (IASB) has developed guidance to
help micro-sized entities apply the IFRS for Small and Medium-sized
Entities (SMEs).

O
Open for comment

The IASB follows a thorough, open and transparent due process of which the
publication of consultative documents, such as Discussion Papers and Exposure
Drafts, for public comment is an important component.
Outreach activities
We undertake a range of outreach and stakeholder communication activities to
inform and educate, to explain and clarify our proposals and to provide opportunities
for interested parties to discuss and debate them with us. These activities
supplement our formal due process events such as round-table meetings.

P
Podcasts
We provide audio summaries of Board meetings, project updates and other useful
information ('podcasts'). These provide a high-level overview of the topic and are
designed to be listened to on a computer or downloaded to a digital media player
Policies
The IFRS Foundation has adopted a set of policies and guidance statements that
are designed to ensure that the organisation operates in a way that meets or
exceeds the requirements of public interest, meets all legal requirements, and has
an overall beneficial impact on the environment.

Post-implementation Review (PIR)

The IASB carries out a post-implementation review of each new IFRS or major
amendment. This is normally carried out two years after the new requirements have
become mandatory and been implemented. Such reviews are normally limited to
important issues identified as contentious during the development of the
pronouncement and consideration of any unexpected costs or implementation
problems encountered.

Rate-regulated Activities Consultative Group

The IASB has established the group to help in its project on rate regulation by
providing a variety of expert perspectives, including those of preparers, auditors and
users of financial statements, and regulators. The group consists of senior
professionals with extensive practical experience in the operation of a variety of rateregulatory schemes.
Redeliberations
Draft Interpretations are made available for public comment for not less than 60
days. All comments received during the comment period are considered by the IFRS
Interpretations Committee before an Interpretation is finalised.

S
Shariah-Compliant Instruments and Transactions
On 2 July 2013 an inaugural meeting was held to discuss Sharia-compliant
instruments and transactions. The meeting was chaired by the IASB.
SME Implementation Group
The mission of the SME Implementation Group is to support the international
adoption of the IFRS for SMEs and monitor its implementation.
Snapshots
Snapshot documents are published by the IASB and IFRS Foundation to accompany
due process documents. They provide a high level summary of IASB proposals.
Standard (IFRS)
International Financial Reporting Standards (IFRSs) are developed through an
international consultation process, the "due process", which involves interested
individuals and organisations from around the world.
Strategy Review
In February 2012 the Trustees of the IFRS Foundation, the oversight body of the
IASB, concluded their review of the strategy of the IFRS Foundation. The review was
initiated at the end of 2010 as the IFRS Foundation was entering its second decade
of existence and was a result of the IFRS Foundations second Constitution Review
that was completed in early 2010.

Taxonomy
Taxonomy in general means a catalogue or a set of rules for classification; in XBRL,
a taxonomy is a dictionary, containing computer-readable definitions of business
reporting terms as well relationships between them and links connecting them to
human-readable resources (metadata); a typical taxonomy consists of a schema (or
schemas) and linkbases; a set of taxonomies that can be discovered from one entry
point schema is called DTS.
Translations
Translation is a necessary and vital part of achieving the IFRS Foundation's mission
to develop a single set of high-quality global accounting standards for use around the
world.
Trustees
The Trustees promote the work of the International Accounting Standards Board
(IASB) and the rigorous application of IFRSs but are not involved in any technical
matters relating to the standards. This responsibility rests solely with the IASB.

U
Unaccompanied IFRS
The IFRS Foundation provides access free of charge to the PDF files of the current
year's consolidated IFRSs, (Part A of the Red Book) the official pronouncements in
English as issued by the IASB, as well as available translations of IFRSs-excluding
the accompanying documents-illustrative examples, implementation guidance, bases
for conclusions.
Unaccompanied Interpretations (IFRIC)
International Financial Reporting Standards Interpretations (IFRICs) are the official
interpretations of IFRSs. They are developed in accordance with a thorough due
process by the IFRS Interpretations Committee and approved by the IASB. They
have the same authority as full IFRSs.
Unaccompanied Interpretations (SIC)
SICs are the official interpretations of the international accounting standards (IASs)
that were developed by the IASB's predecessor body and its interpretative
committee.
Unaccompanied IAS
International Accounting Standards (IASs) are international financial reporting
standards that were created by the predecessor body of the IASB. These Standards
were adopted by the IASB when it took over in 2001 and therefore form part of the
body of IFRS requirements.

V
Valuation expert group
As part of the IASBs Education Initiative, the fair value measurement team is
developing educational material to support IFRS 13 Fair Value Measurement, with
the assistance of subject matter experts.

W
Work plan
The IASB work plan is the timetable for project work that details expected publication
dates and other project milestones.
World Standard Setters conference
Since 2002 the International Accounting Standards Board (IASB) has hosted an
annual conference for the world's financial reporting standard-setters.

X
XBRL
XBRL stands for extensible Business Reporting Language; it is an XML dialect
developed for business and financial reporting purposes by a non-profit consortium
XBRL International which has members from 400 companies and institutions that
represent finance and IT sector organisations from all over the world.