What are the role of the IFRS Interpretations Committee?
Role of the IFRS Interpretations Committee :
The IFRS Interpretations Committee reviews newly identified financial reporting issues that are not specifically dealt with in IFRSs, and issues for which unsatisfactory or conflicting interpretations have emerged or may emerge.
The IFRS Interpretations Committee endeavours to reach a consensus on appropriate accounting treatment and provides authoritative guidance on the issue concerned. The interpretations issued by the committee are referred to as IFRIC Interpretations, taking their name from the previous name given to the committee, the International Financial Reporting Interpretations Committee (IFRIC).
When approved by the IASB, IFRIC Interpretations have equivalent status to standards issued by the IASB; that is, although IFRIC Interpretations are not accounting standards, they form part of IFRSs such that compliance with IFRSs means compliance with both accounting standards issued by the IASB and IFRIC Interpretations approved by the IASB.
Role of the IFRS Interpretations Committee is essential to trustworthy financial reporting.