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ARTICLE · 23 NOVEMBER 2012

Interpreting IFRS In A "Principled" Way: IFRS Interpretations Committee

Grant Thornton LLP
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International Financial Reporting Standards (IFRS) are often said to be "principle-based," meaning that they are based on clear-cut principles that can be applied without the need for detailed interpretive guidance.

United StatesAccounting and Audit
Gary Illiano
Gary Illiano
Sheri Fabian
Sheri Fabian
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International Financial Reporting Standards (IFRS) are often said to be "principle-based," meaning that they are based on clear-cut principles that can be applied without the need for detailed interpretive guidance. Even so, principle-based standards need a little interpretation once in a while. Enter the IFRS Interpretations Committee.

The IFRS Interpretations Committee (IFRIC or the Committee) assists the International Accounting Standards Board (IASB or the Board), which issues IFRS, in improving financial reporting through the timely identification, discussion, and resolution of financial reporting issues. Its mandate is to interpret the application of IFRS and to provide timely guidance on financial reporting issues not specifically addressed in IFRS. The Committee develops this guidance using a principle-based approach founded in the Conceptual Framework for Financial Reporting. The Due Process Handbook for the IFRS Interpretations Committee makes it clear that

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