The IASC Foundation is managed by 22 Trustees. The Trustees include highly experienced public and private sector professionals who belong to various parts of the world (IASB, n.d.). The IASC was established in 1973.
The goal of IASB is "to provide the world's integrating capital markets with a common language for financial reporting" (IASB, 2008). Main objectives of the IASB, as defined by IASC Foundation constitution, include the following (IAS Plus, 2009):
As shown above, IASB is appointed by IASC Foundation (which is appointed by and reports to the Monitoring Board). ISAC Foundation also appoints other advisory bodies that advise IASB on various activities. These include Standards Advisory Council, Working Groups for Major Agenda Projects, and International Financial Reporting Interpretations Committee.
IASB develops IFRS using a standard 'due process'. IASC can review the process of standards development during any/ all step(s). The main steps of the process are described below (IASC Foundation, 2006. pp. 8-13):
1. Setting the agenda: The agenda is set with a view to address needs of most of the users of financial statements; mainly the investors. Some factors which are considered include the relevance and reliability of information that can be provided to users, availability or pre-existing guidance on the topic and possible convergence, resource constraints and the expected quality of potential standard.
2. 2. Project planning: At this stage, it is decided whether to do the project alone or as a joint project with other standard setting bodies. The project team is identified, assembled and finalized during this stage of the due process.
3. Development and publication of a discussion paper: Although not mandatory, but IASB usually publish a discussion paper to seek public comments and suggestions on the topic, agenda, and the targets. The comments are analyzed to determine if any improvement can be made. A discussion paper is developed after preliminary research on the topic and similar standards.
4. Development and publication of an exposure draft: Exposure draft development and publication is a mandatory step in the process. The exposure draft is developed after extensive research and details the proposal, agenda, and recommendations for the standard. Once developed, it is published to obtain comments. The comments are then analyzed to make required modification in the standard,