Chartered Institute of Public Finance and Accountancy


Professional Conduct

International Standard Setting Bodies

The International Accounting Standards Board (IASB) is an independent standard-setting board, appointed and overseen by a geographically and professionally diverse group of Trustees (IASC Foundation) who are accountable to the public interest. Their stated goal is to "provide the world's integrating capital markets with a common language for financial reporting." This is achieved by setting accounting and financial reporting standards using a thorough, open and transparent process, engaging with investors, regulators, business leaders and the global accountancy profession at every stage of the process, and collaborating with the worldwide standard setting community. The IASB is the international equivalent of the UK's Accounting Standards Board. The IASB is responsible for issuing International Financial Reporting Standards (IFRS) as well as updating International Accounting Standards (IAS), which were issued by the International Accounting Standards Committee (the predecessor body to the IASB). IFRS and IAS are the primary standards used in developing the IFRS-based Code of Practice on Local Authority Accounting.

The International Financial Reporting Interpretations Committee (IFRIC) is the IASB's interpretive committee, fulfilling a similar role under IFRS to that performed by the Urgent Issues Task Force in the UK. The IFRIC reviews, on a timely basis within the context of current International Financial Reporting Standards (IFRSs) and the IASB Framework, accounting issues that are likely to receive divergent or unacceptable treatment in the absence of authoritative guidance, with a view to reaching consensus on the appropriate accounting treatment. In developing interpretations, the IFRIC works closely with similar national committees. The IFRIC addresses issues of reasonably widespread importance, not issues that are of concern to only a small minority of entities. Interpretations were also issued by the Standing Interpretation Committee (SIC), the predecessor body to the IFRIC. Interpretations by both the IFRIC and the SIC are incorporated into the IFRS-based Code of Practice on Local Authority Accounting.

The International Public Sector Accounting Standards Board (IPSASB) is an independent standard-setting board within the International Federation of Accountants (IFAC). The IPSASB focuses on the accounting and financial reporting needs of national, regional and local governments, related governmental agencies, and the constituencies they serve. It addresses these needs by issuing and promoting benchmark guidance and facilitating the exchange of information among accountants and those who work in the public sector or rely on its work. The IPSASB's stated objective is to "serve the public interest by developing high quality accounting standards for use by public sector entities around the world in the preparation of general purpose financial statements. This will enhance the quality and transparency of public sector financial reporting and strengthen public confidence in public sector financial management. In pursuit of this objective, the IPSASB supports the convergence of international and national public sector accounting standards and the convergence of accounting and statistical bases of financial reporting where appropriate." The IPSASB issues International Public Sector Accounting Standards (IPSAS); the IPSASB is currently undertaking a convergence programme to ensure that IPSAS are consistent with IFRS and IAS wherever this is appropriate for the public sector. IPSAS also cover issues that are unique to the public sector (for example non-exchange revenue, which includes the collection of taxes) and are therefore not covered in IFRS and IAS, which have a private sector focus. IPSAS are the secondary standards used in developing the IFRS-based Code of Practice on Local Authority Accounting, and are relied on where they cover issues not covered by IFRS or IAS, or where they provide additional guidance on interpretations or adaptations for the public sector context.

The Table below compares the terms above with the equivalent UK terms:

UK International International Public Sector
Accounting Standards Board (ASB) International Accounting Standards Board (IASB) International Public Sector Accounting Standard Board (IPSASB)
Financial Reporting Standard (FRS) International Financial Reporting Standard (IFRS) International Public Sector Accounting Standard (IPSAS)
Statement of Standard Accounting Practice (SSAP) International Accounting Standard (IAS) IPSAS (no predecessor to IPSAS)
Accounting Standards Committee (ASC) International Accounting Standards Committee (IASC) IPSASB (no predecessor to IPSASB)
Urgent Issues Task Force (UITF) International Financial Reporting Interpretations Committee (IFRIC)

Standing Interpretations Committee (SIC) - predecessor body

Scope of these bodies more limited than UITF		 N/a