IFRS Interpretations Committee
Role of the IFRS Interpretations Committee
Under the IFRS Foundation Constitution, the IFRS Interpretations Committee (the 'Committee'), formerly called the International Financial Reporting Interpretations Committee (IFRIC), has the following roles:
- interpret the application of IFRSs and provide timely guidance on financial reporting issues not specifically addressed in IFRSs, in the context of the IASB’s Framework, and undertake other tasks at the request of the IASB
- in carrying out its work above, have regard to the IASB‘s objective of working actively with national standard-setters to bring about convergence of national accounting standards and IFRSs to high quality solutions
- publish after clearance by the IASB draft Interpretations for public comment and consider comments made within a reasonable period before finalising an Interpretation
- report to the IASB and obtain the approval of nine of its members for final Interpretations if there are fewer than sixteen members, or by ten of its members if there are sixteen members.
The Committee comprises fourteen voting members, appointed by the IFRS Foundation Trustees for renewable terms of three years.
The Trustees select members of the Committee so that it comprises a group of people representing, within that group, the best available combination of technical expertise and diversity of international business and market experience in the practical application of IFRSs and analysis of financial statements prepared in accordance with IFRSs.
Development and approval of Interpretations
Interpretations are developed by the Committee, exposed for public comment (these are called Draft Interpretations and numbered D1, D2, etc.), approved by IFRIC, and then sent to the IASB Board for review and approval as Final Interpretations. At the IFRIC level, consensus is reached if not more than three of the 14 Interpretations Committee members object to a draft Interpretation or final Interpretation. At the Board level, the same vote is required as for a Standard, which is 9 of the 14 Board members.
Authority of Interpretations
Interpretations are part of IASB's authoritative literature (see IAS 1 Presentation of Financial Statements). Therefore, financial statements may not be described as complying with International Financial Reporting Standards unless they comply with all the requirements of each applicable Standard and each applicable Interpretation.
In 2009 the International Accounting Standards Board (IASB) asked the (then) IFRIC to assume responsibility for the annual process for making relatively minor improvements to IFRSs. The IASB must approve both the Exposure Draft of proposed improvements and the final improvements (which are amendments to IFRSs).
Current membership of the IFRS Interpretations Committee
|Tony de Bell||Member, Global Accounting Consulting Services Leadership Team, PricewaterhouseCoopers, United Kingdom||Term expires 30 June 2016|
|Reinhard Dotzlaw||Member, KPMG Global IFRS Panel, Canada||Term expires 30 June 2016|
|Carl Douglas||Corporate Controller, CCR Group||Term expires 30 June 2017|
|Bonnie Van Etten||Head of Fiat and Chrysler Group Global Technical Accounting and Accounting Research, Chrysler Group LLC||Term expires 30 June 2017|
|Mikael Hagström||Head of Corporate Financial Reporting, Volvo Group||Term expires 30 June 2017|
|Jongsoo Han||Board member of the Korea Accounting Standards Board (KASB) and Vice-President of the Korea Accounting Association||Term expires 30 June 2018|
|Feilong Li||Executive Director, Executive Vice President & CFO, China Oil Services Limited, China||Term expires 30 June 2016|
|Bruce Mackenzie||Managing Partner, W Consulting International||Term expires 30 June 2017|
|John O'Grady||Asia-Pacific IFRS Leader, Ernst & Young||Term expires 30 June 2018|
|Sandra Peters||Head of Financial Reporting Policy, CFA Institute, United States||Term expires 30 June 2018|
|Charlotte Pissaridou||Managing Director, Goldman Sachs, United Kingdom||Term expires 30 June 2017|
|Martin Schloemer||Head of Accounting Principles and Policies, Bayer AG, Germany||Term expires 30 June 2016|
|Robert Uhl||Partner and Leader of Deloitte's IFRS Centre of Excellence in the United States and member of the Deloitte IFRS Leadership Team||Term expires 30 June 2018|
|Andrew Watchman||Executive Director, International Financial Reporting, Grant Thornton, United Kingdom||Term expires 30 June 2016(1)|
- Wayne Upton, Chairman, IFRS Interpretations Committee, IASB Director of International Activities