Final answer:
The International Accounting Standards Board (IASB) is an independent body responsible for the creation and governance of the International Financial Reporting Standards (IFRS), which provide guidance on financial reporting for companies internationally.
Step-by-step explanation:
The International Accounting Standards Board (IASB) is an independent organization that develops and approves the International Financial Reporting Standards (IFRS). The IASB operates under the oversight of the IFRS Foundation. The IFRS are a set of accounting standards that provide guidance on how companies should report their financial performance and position, aiming to bring consistency, transparency, and comparability across international boundaries.
Relationship Between IASB and IFRS
The relationship between IASB and IFRS is that of a creator and its creation. The IASB is responsible for the development, issuance, and maintenance of IFRS, which are utilized by companies around the world for financial reporting. Adopting IFRS allows companies to present their financial statements on a basis that is understandable and comparable globally, facilitating international investment and economic decision-making.