International Financial Reporting Standardards (IFRS)
The International Financial Reporting Standards interpretation Committee is formed with the help of fourteen members and its main motive is to detect the problems which arise frequently in an organization and then suggest the required guidance. The International Financial Reporting Standards acquires its fund from various sources for the functioning of the International Accounting Standard Board. The major sources are different banks and some of the big companies. The International Financial Reporting Standards are set by International Accounting Standard Board (Ball, 2006). The International Financial Reporting Standards provides guidance and information about the organization’s financial position and its performance. The International Financial Reporting Standard conducts meeting for the improvement of its performance. Such meetings of the International Financial Reporting Standards are also open to the public. The International Financial Reporting Standards and their interpretation are developed by experienced members following prescribed rules and regulations. The process of International Financial Reporting System is prescribed by the International Accounting Standard Board. It is almost similar to the process of the International Accounting Standard Board (Lexis, 2007). International Financial Reporting System should first identify the various issues faced and research them. The study of the national standard and practices is also necessary. The main part of the process is the publish of the draft interpretation if the draft gets less than four votes from the members of the voting committee. The draft interpretation gets various feedbacks which are discussed by the members. If final interpretation gets less than four votes from the voting members against it, it should be submitted to the International Accounting Standard Board. If the International Accounting Standard Board approves the final interpretation with the help of nine affirmative votes, a meeting is held for the public.