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
|Luca Cencioni||Senior Accounting Manager, Eni Adfin S.p.A., Italy||Term expires 30 June 2014|
|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|
|Feilong Li||Executive Director, Executive Vice President & CFO, China Oil Services Limited, China||Term expires 30 June 2016|
|John O'Grady||Asia-Pacific IFRS Leader, Ernst & Young||Term expires 30 June 2015|
|Jean Paré||Vice President, Financial Reporting, Bombardier Inc., Canada||Term expires 30 June 2014|
|Joanna Perry||Company Director and Current Chair of the Financial Reporting Standards Board, New Zealand||Term expires 30 June 2014|
|Sandra Peters||Head of Financial Reporting Policy, CFA Institute, United States||Term expires 30 June 2015|
|Charlotte Pissaridou||Managing Director, Head of Accounting Policy for Europe, Middle East and Africa, Goldman Sachs International, United Kingdom||Term expires 30 June 2014|
|Martin Schloemer||Head of Accounting Principles and Policies, Bayer AG, Germany||Term expires 30 June 2016|
|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|
|Margaret M. (Peggy) Smyth||Vice President Finance & Chief Financial Officer, Hamilton Sundstrand, United Technologies Company, United States||Term expires 30 June 2014|
|Scott Taub||Managing Director, Financial Reporting Advisors, LLC, United States, and former Acting Chief Accountant and Deputy Chief Accountant, US Securities and Exchange Commission, United States||Term expires 30 June 2014|
|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|
- Wayne Upton, Chairman, IFRS Interpretations Committee, IASB Director of International Activities