Final answer:
IFRS/IAS are accounting standards set by the International Accounting Standards Board (IASB) designed to ensure consistency and transparency in financial reporting worldwide. These standards allow for the comparison of financial statements internationally and are developed by experts in the public interest to cater to diverse economies and markets.
Step-by-step explanation:
The correct answer to the student's question is: International Financial Reporting Standards (IFRS)/International Accounting Standards (IAS), set by the International Accounting Standards Board (IASB). IFRS and IAS are a set of accounting standards that dictate how certain types of transactions and other events should be reported in financial statements. They are designed to maintain consistency and transparency throughout the financial world, enabling investors and other market participants to make informed economic decisions.
IFRS are used globally, which helps to standardize reporting across different countries, thereby simplifying the comparison and understanding of financial statements internationally. The IASB is an independent, private-sector body that develops and approves these standards in the public interest. It brings together experts from various countries to ensure that the standards reflect the needs of a diverse range of economies and market systems.
Before the formation of IASB, IAS were issued by the Board's predecessor, the International Accounting Standards Committee (IASC). Since the establishment of IASB in 2001, the responsibility for developing IFRS has been with the IASB. It should be noted that while IFRS are widely adopted, companies may still be subject to other local regulations depending on their jurisdiction.