University of Khartoum

School of Management Studies

BSc Program – 1st Year – Semester 1
Financial Accounting 1

The Regulatory Framework

Abdelwahab Ahmed Ibrahim

Department of Accounting & Financial Management
 Contents
• Factors Shaped Financial Accounting
• The International Accounting Standards Board
(IASB)
• The IFRS Foundation
• IFRS Advisory Council
• IFRS Interpretations Committee
• Current IFRSs
 Factors Shaped Financial
Accounting
1. National/local legislation
2. Accounting concepts and individual judgement
3. Accounting standards
4. Other international influences
5. Generally accepted accounting principles
(GAAP)
6. Fair presentation
 Factors Shaped Financial
Accounting
National/local legislation
In most countries, limited liability companies are
required by law to prepare and publish
accounts annually. The form and content of the
accounts is regulated primarily by national
legislation.
 Factors Shaped Financial
Accounting
Accounting concepts and individual judgement
Financial statements are prepared on the basis
Examples:
•of Valuation
a number of fundamental
of buildings in timesaccounting
of rising
assumptions and conventions. Many figures in
property prices
•financial
Researchstatements are derived
and development: from
is it right the
to treat
application of judgement in putting
this only as an expense? In a sense it is an these
assumptions
investmentinto practice. future revenue
to generate
 Factors Shaped Financial
Accounting
Accounting standards
In an attempt to deal with some of the
subjectivity, and to achieve comparability
between different organisations, accounting
standards were developed. These are
developed at both a national level (in most
countries) and an international level.

IFRSs
International Accounting Standards Board
(IASB)
 The International Accounting
Standards Board (IASB)
The International Accounting Standards Board (IASB)
is an independent, privately funded body that
develops and approves IFRSs.
Prior to 2003, standards were issued as International
Accounting Standards (IASs). In 2003 IFRS 1 was
issued and all new standards are now designated as
IFRSs.
The members of the IASB come from several
countries and have a variety of backgrounds, with a
mix of auditors, preparers of financial statements,
users of financial statements and academics.
 The IFRS Foundation
The IFRS Foundation (formally called the
International Accounting Standards Committee
Foundation or (IASCF) is a not for profit, private
sector body that oversees the IASB.
The main objective of the IFRS Foundation is to
develop a single set of high quality,
understandable, enforceable and globally accepted
IFRSs through its standard-setting body, the IASB.
 IFRS Advisory Council
The IFRS Advisory Council is used by the IASB to
consult with the outside world. It consults with
national standard setters, academics, user groups
and other interested parties to advise the IASB on a
range of issues.
The IFRS Advisory Council meets the IASB at least
three times a year and puts forward the views of its
members on current standard-setting projects.
 IFRS
Interpretations Committee
IFRS
The Interpretations Committee
IFRS Interpretations Responsibilities:
Committee was set up in
•March 2002 and
To review, on aprovides guidance
timely basis, newlyonidentified
specific
practical issuesreporting
financial in the interpretation
issues notof IFRSs.
specifically
addressed in IFRSs.
• To clarify issues where unsatisfactory or
conflicting interpretations have developed, or
seem likely to develop in the absence of
authoritative guidance, with a view to reaching a
consensus on the appropriate treatment.
 Current IFRSs
https://www.ifrs.org/issued-standards/list-of-standar
ds
/
 ACCA, F3
Part A, Chapter 2, Pg. 19
Thanks