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The International Accounting Standards Board (IASB) main objective together with
national standard setters is to set standards for financial reporting that will be used by
businesses and organizations worldwide. The board has twelve full-time members and two
part-time members. Of the twelve full-time members, seven members must have a formal
liaison responsibility with one or more national standard setter. (Hoyle, Schaefer, &
Doupnik, 2004) There is no requirement of formal liaison responsibility for the remaining
seven members of the board. A minimum of five IASB members must have a background
as practicing auditors, three must have a background as preparers of financial statements
and three as users of financial statements, and at least one member must come from
academia. (Hoyle, Schaefer, & Doupnik, 2004) This paper will examine the International
Accounting Standards Board role and history, as well as its evolution and stance on ethics
issues.
The International Accounting Standards Committee (IASC) originated in June of 1973. It
was later restructured to form the IASB on April 1, 2001. Accountancy bodies from the
countries of the United States, Mexico, the United Kingdom, Ireland, the Netherlands,
Japan, France, Germany, Australia, and Canada formed the board of IASC. The
accountancy bodies fell under the organization of the International Federation of
Accountants (IFAC) in 1977. Both the setting of international accounting standards and the
publishing of discussion documents dealing with international issues were the primary
responsibilities of the IASC. At this time the board consisted of representatives from
fourteen different countries. For an International Accounting Standard (IAS) to become
