1、 IASCF 1Preface to International Financial Reporting Standards11 including IFRIC and SIC Interpretations IASCF 2This Preface is issued to set out the objectives and due process of the International Accounting Standards Board and to explain the scope, authority and timing of application of Internatio
2、nal Financial Reporting Standards. The Preface was approved by the IASB in April 2002 and superseded the Preface published in January 1975 (amended November 1982). In 2007 the Preface was amended in January and October to reflect changes in the IASC Foundations Constitution and in September as a con
3、sequence of the changes made by IAS 1 Presentation of Financial Statements (as revised in 2007). In January 2008 paragraph 9 was amended to update the reference to the body now known as the IPSASB.1 The International Accounting Standards Board (IASB) was established in 2001 as part of the Internatio
4、nal Accounting Standards Committee (IASC) Foundation. The governance of the IASC Foundation rests with twenty-two Trustees. The Trustees responsibilities include appointing the members of the IASB and associated councils and committees, as well as securing financing for the organisation. The IASB co
5、mprises twelve full-time and two part-time members. Approval of International Financial Reporting Standards (IFRSs) and related documents, such as the Framework for the Preparation and Presentation of Financial Statements, exposure drafts, and other discussion documents, is the responsibility of the
6、 IASB.2 The International Financial Reporting Interpretations Committee (IFRIC) comprises fourteen voting members and a non-voting Chairman, all appointed by the Trustees. The role of the IFRIC is to prepare interpretations of IFRSs for approval by the IASB and, in the context of the Framework, to p
7、rovide timely guidance on financial reporting issues. The IFRIC replaced the former Standing Interpretations Committee (SIC) in 2002.3 The Standards Advisory Council (SAC) is appointed by the Trustees. It provides a formal vehicle for participation by organisations and individuals with an interest i
8、n international financial reporting. The participants have diverse geographical and functional backgrounds. The SACs objective is to give advice to the IASB on priorities and on major standard-setting projects.4 The IASB was preceded by the Board of IASC, which came into existence on 29 June 1973 as
9、 a result of an agreement by professional accountancy bodies in Australia, Canada, France, Germany, Japan, Mexico, the Netherlands, the United Kingdom and Ireland, and the United States of America. A revised Agreement and Constitution were signed in November 1982. The Constitution was further revise
10、d in October 1992 and May 2000 by the IASC Board. Under the May 2000 Constitution, the professional accountancy bodies adopted a mechanism enabling the appointed Trustees to put the May 2000 Constitution into force. The Trustees activated the new Constitution in January 2001, and revised it in March
11、 2002.25 At its meeting on 20 April 2001, the IASB passed the following resolution: All Standards and Interpretations issued under previous Constitutions continue to be applicable unless and until they are amended or withdrawn. The International Accounting Standards Board may amend or withdraw Inter
12、national Accounting Standards and SIC Interpretations issued under previous Constitutions of IASC as well as issue new Standards and Interpretations.2 The Constitution was further revised in July 2002, June 2005 and October 2007. IASCF 3When the term IFRSs is used in this Preface, it includes standa
13、rds and Interpretations approved by the IASB, and International Accounting Standards (IASs) and SIC Interpretations issued under previous Constitutions.Objectives of the IASB6 The objectives of the IASB are: (a) to develop, in the public interest, a single set of high quality, understandable and enf
14、orceable global accounting standards that require high quality, transparent and comparable information in financial statements and other financial reporting to help participants in the various capital markets of the world and other users of the information to make economic decisions;(b) to promote t
15、he use and rigorous application of those standards;(c) in fulfilling the objectives associated with (a) and (b), to take account of, as appropriate, the special needs of small and medium-sized entities and emerging economies; and (d) to bring about convergence of national accounting standards and IF
16、RSs to high quality solutions.Scope and authority of International Financial Reporting Standards7 The IASB achieves its objectives primarily by developing and publishing IFRSs and promoting the use of those standards in general purpose financial statements and other financial reporting. Other financ
17、ial reporting comprises information provided outside financial statements that assists in the interpretation of a complete set of financial statements or improves users ability to make efficient economic decisions. In developing IFRSs, the IASB works with national standard-setters to maximise the co
18、nvergence of IFRSs and national standards.8 IFRSs set out recognition, measurement, presentation and disclosure requirements dealing with transactions and events that are important in general purpose financial statements. They may also set out such requirements for transactions and events that arise
19、 mainly in specific industries. IFRSs are based on the Framework, which addresses the concepts underlying the information presented in general purpose financial statements. The objective of the Framework is to facilitate the consistent and logical formulation of IFRSs. The Framework also provides a
20、basis for the use of judgement in resolving accounting issues.9 IFRSs are designed to apply to the general purpose financial statements and other financial reporting of all profit-oriented entities. Profit-oriented entities include those engaged in commercial, industrial, financial and similar activ
21、ities, whether organised in corporate or in other forms. They include organisations such as mutual insurance companies and other mutual co-operative entities that provide dividends or other economic benefits directly and proportionately to their owners, members or participants. Although IFRSs are no
22、t designed to apply to not-for-profit activities in the private sector, public sector or government, entities with such activities may find them appropriate. The International Public Sector Accounting Standards Board (IPSASB) prepares IASCF 4accounting standards for governments and other public sect
23、or entities, other than government business entities, based on IFRSs.10 IFRSs apply to all general purpose financial statements. Such financial statements are directed towards the common information needs of a wide range of users, for example, shareholders, creditors, employees and the public at lar
24、ge. The objective of financial statements is to provide information about the financial position, performance and cash flows of an entity that is useful to those users in making economic decisions. 11 A complete set of financial statements includes a statement of financial position, a statement of c
25、omprehensive income, a statement of changes in equity, a statement of cash flows, and accounting policies and explanatory notes. When a separate income statement is presented in accordance with IAS 1 Presentation of Financial Statements (as revised in 2007), it is part of that complete set. In the i
26、nterest of timeliness and cost considerations and to avoid repeating information previously reported, an entity may provide less information in its interim financial statements than in its annual financial statements. IAS 34 Interim Financial Reporting prescribes the minimum content of complete or c
27、ondensed financial statements for an interim period. The term financial statements includes a complete set of financial statements prepared for an interim or annual period, and condensed financial statements for an interim period.12 In some cases, IASC permitted different treatments for given transa
28、ctions and events. Usually, one treatment is identified as the benchmark treatment and the other as the allowed alternative treatment. The financial statements of an entity may appropriately be described as being prepared in accordance with IFRSs whether they use the benchmark treatment or the allow
29、ed alternative treatment.13 The IASBs objective is to require like transactions and events to be accounted for and reported in a like way and unlike transactions and events to be accounted for and reported differently, both within an entity over time and among entities. Consequently, the IASB intend
30、s not to permit choices in accounting treatment. Also, the IASB has reconsidered, and will continue to reconsider, those transactions and events for which IASs permit a choice of accounting treatment, with the objective of reducing the number of those choices.14 Standards approved by the IASB includ
31、e paragraphs in bold type and plain type, which have equal authority. Paragraphs in bold type indicate the main principles. An individual standard should be read in the context of the objective stated in that standard and this Preface.15 Interpretations of IFRSs are prepared by the IFRIC to give aut
32、horitative guidance on issues that are likely to receive divergent or unacceptable treatment, in the absence of such guidance.16 IAS 1 (as revised in 2007) includes the following requirement: An entity whose financial statements comply with IFRSs shall make an explicit and unreserved statement of su
33、ch compliance in the notes. An entity shall not describe financial statements as complying with IFRSs unless they comply with all the requirements of IFRSs.17 Any limitation of the scope of an IFRS is made clear in the standard. IASCF 5Due process18 IFRSs are developed through an international due p
34、rocess that involves accountants, financial analysts and other users of financial statements, the business community, stock exchanges, regulatory and legal authorities, academics and other interested individuals and organisations from around the world. The IASB consults, in public meetings, the SAC
35、on major projects, agenda decisions and work priorities, and discusses technical matters in meetings that are open to public observation. Due process for projects normally, but not necessarily, involves the following steps (the steps that are required under the terms of the IASC Foundation Constitut
36、ion are indicated by an asterisk*): (a) the staff are asked to identify and review all the issues associated with the topic and to consider the application of the Framework to the issues;(b) study of national accounting requirements and practice and an exchange of views about the issues with nationa
37、l standard-setters;(c) consulting the SAC about the advisability of adding the topic to the IASBs agenda;*(d) formation of an advisory group to give advice to the IASB on the project;(e) publishing for public comment a discussion document;(f) publishing for public comment an exposure draft approved
38、by at least nine votes of the IASB, including any dissenting opinions held by IASB members;*(g) publishing within an exposure draft a basis for conclusions;(h) consideration of all comments received within the comment period on discussion documents and exposure drafts;*(i) consideration of the desir
39、ability of holding a public hearing and of the desirability of conducting field tests and, if considered desirable, holding such hearings and conducting such tests;(j) approval of a standard by at least nine votes of the IASB and inclusion in the published standard of any dissenting opinions;* and(k
40、) publishing within a standard a basis for conclusions, explaining, among other things, the steps in the IASBs due process and how the IASB dealt with public comments on the exposure draft.19 Interpretations of IFRSs are developed through an international due process that involves accountants, finan
41、cial analysts and other users of financial statements, the business community, stock exchanges, regulatory and legal authorities, academics and other interested individuals and organisations from around the world. The IFRIC discusses technical matters in meetings that are open to public observation.
42、 The due process for each project normally, but not necessarily, involves the following steps (the steps that are required under the terms of the IASC Foundation Constitution are indicated by an asterisk*): (a) the staff are asked to identify and review all the issues associated with the topic and t
43、o consider the application of the Framework to the issues; IASCF 6(b) consideration of the implications for the issues of the hierarchy of IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors;(c) publication of a draft Interpretation for public comment if no more than four IFRIC mem
44、bers have voted against the proposal;*(d) consideration of all comments received within the comment period on a draft Interpretation;*(e) approval by the IFRIC of an Interpretation if no more than four IFRIC members have voted against the Interpretation after considering public comments on the draft
45、 Interpretation;* and(f) approval of the Interpretation by at least nine votes of the IASB.*Timing of application of International Financial Reporting Standards20 IFRSs apply from a date specified in the document. New or revised IFRSs set out transitional provisions to be applied on their initial ap
46、plication.21 The IASB has no general policy of exempting transactions occurring before a specific date from the requirements of new IFRSs. When financial statements are used to monitor compliance with contracts and agreements, a new IFRS may have consequences that were not foreseen when the contract
47、 or agreement was finalised. For example, covenants contained in banking and loan agreements may impose limits on measures shown in a borrowers financial statements. The IASB believes the fact that financial reporting requirements evolve and change over time is well understood and would be known to
48、the parties when they entered into the agreement. It is up to the parties to determine whether the agreement should be insulated from the effects of a future IFRS, or, if not, the manner in which it might be renegotiated to reflect changes in reporting rather than changes in the underlying financial
49、 condition.22 Exposure drafts are issued for comment and their proposals are subject to revision. Until the effective date of an IFRS, the requirements of any IFRS that would be affected by proposals in an exposure draft remain in force.Language23 The approved text of any discussion document, exposure draft, or IFRS is that approved by the IASB in the English language. The IASB may approve translations in other languages, provided that the translation is prepared in accordance with a process that provides assurance of the quality of the translation, and the IASB may
