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International Forum of Accounting Standard-Setters (IFASS)

The Charter for the IASB and National Standard-Setters

The Charter sets out the understanding between the International Accounting Standards Board (IASB) and those accounting standard-setters and other accounting bodies that participate in IFASS.  At its meeting in March 2014, IFASS reached a consensus in support of this Charter and agreed with representatives of the IASB that it should be posted on the IASB’s website to help clarify the IASB’s working relationship with other accounting standard setters.

The purpose of this Charter is to establish some key principles of co-operation between the IASB and other accounting standard-setters. These principles are designed to enhance the efficiency and effectiveness of international accounting standard-setting, reflecting the partnership between other accounting standard-setters and the IASB who all operate in the public interest.  It is a statement of co-operation that relies on the good faith and best endeavours of the parties rather than a binding contractual arrangement..

The Model for National Standard-Setters

The Model is designed to provide a basis for a National Standard Setter (NSS) to maximise its contribution to the quality of general purpose financial reporting, particularly through participation in the development of high-quality global accounting standards issued by the IASB.  The Model could be used as a basis for improving or setting up standard-setting capacity through a NSS (in terms of status, structure, means and resources) in a way that suits its mandate, legal, institutional and economic environment to act in the public interest. Accordingly, the Model sets out concepts that should underlie the activity of accounting standard-setting and the key characteristics to which (a) standard-setters might aspire; and (b) parties with a NSS oversight function could choose to refer in making decisions about, or evaluating the activities of, a NSS.

The Model does not purport to describe current practices adopted by NSSs. The Model is written primarily for NSSs in jurisdictions that are committed to the adoption of IFRS for publicly accountable entities; however, it is also intended to be useful for NSSs in jurisdictions that have not yet committed to adopting IFRS or have standard-setting authority that extends to entities that are not currently addressed by the IASB. Furthermore, it might be useful for other bodies involved in the standard-setting process, such as bodies that monitor, fund or oversee NSSs, or bodies that assess IFRS for adoption in their jurisdiction for the purposes of making recommendations to the legislature.