Question

From where do IFRS Standards stem from? a. International Financial Reporting Standards Board (IFRSB)

b. International Accounting Standards Board (IASB)
c. International Standards Organization (ISO)
d. International Monetary Fund (IMF)

Answer 1

IFRS Standards originate from the International Accounting Standards Board (IASB), which is responsible for developing global accounting standards. Over 100 countries use these standards to prepare and disclose financial statements. The IASB is often mistakenly associated with organizations like the IMF, which in fact has a different focus on financial stability and monetary cooperation.

Step-by-step explanation:

The International Financial Reporting Standards (IFRS) stem from the International Accounting Standards Board (IASB). The IASB is an independent, private-sector body that develops and approves IFRS. The IFRS provide a global framework for how public companies prepare and disclose their financial statements, offering more than 100 countries a basis for accounting standards. While often confused with organizations such as the International Monetary Fund (IMF) or World Trade Organization (WTO), the IASB is solely dedicated to the field of accounting standards.

In contrast, the IMF, created as a Bretton Woods institution, focuses on international financial stability and monetary cooperation. Another Bretton Woods institution is the World Bank. It's also worth mentioning that an institution proposed during the Bretton Woods Conference but not created was the International Trade Organization (ITO).