A technical standard is an established norm or requirement. It is usually a formal document that establishes uniform engineering or technical criteria, methods, processes and practices.

A technical standard can also be a controlled artifact or similar formal means used for calibration. Reference Standards and certified reference materials have an assigned value by direct comparison with a reference base. A primary standard is usually under the jurisdiction of a national standards body. Secondary, tertiary, check standards and standard materials may be used for reference in a metrology system. A key requirement in this case is (metrological) traceability, an unbroken paper trail of calibrations back to the primary standard.

This article discusses formal technical standards. In contrast, a custom, convention, company product, corporate standard, etc which becomes generally accepted and dominant is often called a de facto standard.

A technical standard may be developed privately or unilaterally, for example by a corporation, regulatory body, military, etc. Standards can also be developed by groups such as trade unions, and trade associations. Standards organizations often have more diverse input and usually develop voluntary standards: these might become mandatory if adopted by a government, business contract, etc.

The standardization process may be by edict or may involve the formal consensus ^[1] of technical experts.

IAS

An Overview of International Financial Reporting Standards

• Standards. International Accounting Standards (IASs) were issued by the IASC from 1973 to 2000. The IASB replaced the IASC in 2001. Since then, the IASB has amended some IASs and has proposed to amend others, has replaced some IASs with new International Financial Reporting Standards (IFRSs), and has adopted or proposed certain new IFRSs on topics for which there was no previous IAS. Through committees, both the IASC and the IASB also have issued Interpretations of Standards.

   

• Compliance with Standards. Financial statements may not be described as complying with IFRSs unless they comply with all of the requirements of each applicable standard and each applicable interpretation.

   

• Summaries of Standards. Click on an IAS or IFRS number below to go to an unofficial summary of the standard. Please remember that the summaries of IASs and IFRSs only cover highlights and are not a substitute for reading the entire standard. They should not be relied on for preparing financial statements. The summaries reflect the latest revisions to the standard (including some revisions whose adoption is permitted but not yet required) unless otherwise stated.

   

• IASB Framework. While not a standard, the IASB Framework for the Preparation and Presentation of Financial Statements serves as a guide to resolving accounting issues that are not addressed directly in a standard. Moreover, in the absence of a standard or an interpretation that specifically applies to a transaction, IAS 8 requires that an entity must use its judgement in developing and applying an accounting policy that results in information that is relevant and reliable. In making that judgement, IAS 8.11 requires management to consider the definitions, recognition criteria and measurement concepts for assets, liabilities, income, and expenses in the Framework. The IASB adopted the Framework in April 2001. It had originally been adopted by the IASC in 1989. Currently, the IASB is working on a Project to Revise the Framework.

   

• Preface to IFRSs. Sets out IASB's objectives, the scope of IFRSs, due process, and policies on effective dates, format, and language for IFRSs.

   

• Effective Dates. Click here for a Table of Effective Dates of Recent Standards.
  

   

• How to Obtain.
  • The IASB publishes:
    • individual copies of its standards,
    • an annual "Bound Volume" of all existing standards and interpretations,
    • electronic IFRSs (eIFRS), and
    • a CD ROM with standards and Interpretations.
  • Publications and subscriptions may be ordered on IASB's website www.iasb.org.
  • In April 2009, the IASB began making available on its website, without charge, access to the versions of IFRSs (including interpretations) published in the most recent bound volume of IFRSs and the application guidance that is an integral part of those standards. Free registration is required. The illustrative examples, implementation guidance, and bases for conclusions that accompany, but are not part of, the standards are available only to subscribers. The free standards are available in English and several other languages. Each standard is a separate PDF file. You can access the standards on the IASB's Website:
    • Here for the English version; and
    • Here for the Translations.
  • When IASB standards are endorsed by the European Commission for use in the European Union, they (minus the non-mandatory guidance and bases for conclusions) are published in the Official Journal of the European Union in all of the EU languages. They Can Be Accessed Here.
  • Exposure drafts of proposed new or revised IFRSs may be downloaded from the IASB's website without charge during the comment period.

   

• The term 'IFRSs'. The term International Financial Reporting Standards (IFRSs) has both a narrow and a broad meaning. Narrowly, IFRSs refers to the new numbered series of pronouncements that the IASB is issuing, as distinct from the International Accounting Standards (IASs) series issued by its predecessor. More broadly, IFRSs refers to the entire body of IASB pronouncements, including standards and interpretations approved by the IASB and IASs and SIC interpretations approved by the predecessor International Accounting Standards Committee. [On this website, consistent with IASB policy, we abbreviate International Financial Reporting Standards (plural) as IFRSs and International Accounting Standards (plural) as IASs.]

   

• Interpretations. Click here for information about the Information about Interpretations of IASB Standards.
• Technical Corrections. Click here for information about the IASB's Approach to Making Minor Technical Corrections to Its Standards.

 IFRS

Objective of the Preface to IFRS

Sets out IASB's mission and objectives, the scope of International Financial Reporting Standards (IFRS), due process for developing IFRS and Interpretations, and policies on effective dates, format, and language for IFRS.

IASB's Objectives

• Under the IASCF Constitution, the objectives of the IASB are:

   

  • (a) to develop, in the public interest, a single set of high quality, understandable and enforceable global accounting standards that require high quality, transparent and comparable information in financial statements and other financial reporting to help participants in the world's capital markets and other users make economic decisions;

     

  • (b) to promote the use and rigorous application of those standards; and

     

  • (c) in fulfilling the objectives associated with (a) and (b), to take account of, as appropriate, the special needs of small and medium-sized entities and emerging economies; and

     

  • (d) to bring about convergence of national accounting standards and International Accounting Standards and International Financial Reporting Standards to high quality solutions.

Scope of IFRSs

• IASB Standards are known as International Financial Reporting Standards (IFRSs).
• All International Accounting Standards (IASs) and Interpretations issued by the former IASC and SIC continue to be applicable unless and until they are amended or withdrawn.
• IFRSs apply to the general purpose financial statements and other financial reporting by profit-oriented entities – those engaged in commercial, industrial, financial, and similar activities, regardless of their legal form.
• Entities other than profit-oriented business entities may also find IFRSs appropriate.
• General purpose financial statements are intended to meet the common needs of shareholders, creditors, employees, and the public at large for information about an entity's financial position, performance, and cash flows.
• Other financial reporting includes information provided outside financial statements that assists in the interpretation of a complete set of financial statements or improves users' ability to make efficient economic decisions.
• IFRS apply to individual company and consolidated financial statements.
• A complete set of financial statements includes a statement of financial position, a statement of comprehensive income, a statement of cash flows, a of changes in equity, a summary of accounting policies, and explanatory notes. When a separate income statement is presented in accordance with IAS 1(2007), it is part of that complete set.
• If an IFRS allows both a 'benchmark' and an 'allowed alternative' treatment, financial statements may be described as conforming to IFRS whichever treatment is followed.
• In developing Standards, IASB intends not to permit choices in accounting treatment. Further, IASB intends to reconsider the choices in existing IASs with a view to reducing the number of those choices.
• IFRS will present fundamental principles in bold face type and other guidance in non-bold type (the 'black-letter'/'grey-letter' distinction). Paragraphs of both types have equal authority.
• The provision of IAS 1 that conformity with IAS requires compliance with every applicable IAS and Interpretation requires compliance with all IFRSs as well.

Due Process for IFRS

• Due process steps for a Standard will normally include the following (* below means required by IASB Constitution):
  • staff work to identify and study the issues
  • study of existing national standards and practices
  • IASB consults with SAC about the advisability of adding the project to the IASB's agenda*
  • IASB normally forms an advisory group*
  • IASB publishes a discussion document for comment
  • IASB considers comments received on the discussion document
  • IASB publishes an exposure draft with at least 9 affirmative votes* (the exposure draft will include dissenting opinions and basis for conclusions)
  • IASB considers comments received on the exposure draft
  • IASB considers the desirability of holding a public hearing and of conducting field tests*
  • IASB approves the final Standard with at least 9 affirmative votes* (the Standard will include dissenting opinions and basis for conclusions)
• IASB deliberates in meetings open to public observation.

Due Process for Interpretations

• Interpretations of IFRS will be developed by the International Financial Reporting Interpretations Committee (IFRIC) for approval by IASB
• Due process steps for an Interpretation will normally include (* below means required by IASB Constitution):
  • staff work to identify and study the issues and existing national standards and practices
  • IFRIC studies national standards and practices
  • IFRIC publishes a draft Interpretation for comment if no more than 4 IFRIC Members have voted against the proposal*
  • IFRIC considers comments received on the draft Interpretation within a reasonable period of time
  • IFRIC approves the final Interpretation if no more than 4 IFRIC Members have voted against the proposal and submits it to IASB*
  • IASB approves the final Interpretation by at least 9 affirmative votes of IASB*
• IFRIC deliberates in meetings open to public observation

Effective Dates

• Each IFRS and Interpretation will set out its own effective date and transition provisions

Language

• English is the official language of IASB discussion documents, exposure drafts, IFRS, and Interpretations. IASB may approve translations if the process assures the quality of the translation, and IASB may license other translations.

 ISA

The Clarified Standards

The final set of clarified standards comprises 36 International Standards on Auditing (ISAs) and International Standard on Quality Control (ISQC) 1, including:

• One new standard, addressing communication of deficiencies in internal control;
• 16 standards containing new and revised requirements (these have been referred to as "revised and redrafted ISAs"); and
• 20 standards that have been redrafted to apply the new conventions and reflect matters of general clarity only (these have been referred to as "redrafted ISAs and redrafted ISQC 1").

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