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IFRS Interpretations Committee

IFRS Interpretations Committee

Background

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.

Composition

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.

Annual improvements

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

Voting members

NamePositionTerm
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
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 2015
Sandra Peters Head of Financial Reporting Policy, CFA Institute, United States Term expires 30 June 2015
Laurence Rivat Partner and Leader of Deloitte's IFRS Centre of Excellence in Paris and member of the Deloitte IFRS Leadership Team, France Term expires 30 June 2015
Martin Schloemer Head of Accounting Principles and Policies, Bayer AG, Germany Term expires 30 June 2016
Andrew Watchman Executive Director, International Financial Reporting, Grant Thornton, United Kingdom Term expires 30 June 2016(1)
Kazuo Yuasa General Manager, IFRS Office, Corporate Finance Unit, Fujitsu Limited, Japan Term expires 30 June 2015
  1. This seat represents a single three-year rotating seat.  Andrew Buchanan, Global Head of IFRS, BDO, will replace Andrew Watchman effective 1 July 2016

Non-voting chairman

  • Wayne Upton, Chairman, IFRS Interpretations Committee, IASB Director of International Activities

Official observers