Association of Chartered Certified Accountants (ACCA) Certification Practice Test

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Which body is responsible for developing international accounting standards?

IFRS Advisory Panel
International Federation of Accountants
International Accounting Standards Board
Financial Accounting Standards Board

The correct answer is: International Accounting Standards Board

The correct answer is the International Accounting Standards Board (IASB), which is the organization charged with developing and promoting international accounting standards known as International Financial Reporting Standards (IFRS). The IASB plays a critical role in global accounting by setting the rules that govern how financial statements should be prepared and presented, ensuring consistency and transparency across different countries. The IASB works to enhance the quality of financial reporting around the world and aims to create standards that are understandable, enforceable, and globally accepted. By doing so, it helps to improve comparability of financial statements, making it easier for investors and stakeholders to make informed decisions. On the other hand, while the IFRS Advisory Panel provides strategic advice to the IASB, it does not directly develop the standards. The International Federation of Accountants focuses on the accountancy profession as a whole and does not specifically develop accounting standards. Similarly, the Financial Accounting Standards Board (FASB) primarily develops financial accounting standards in the United States and does not have a global purview like the IASB.