Association of Chartered Certified Accountants (ACCA) Certification Practice Test

What does IASB stand for?

1. International Accounting Standards Board

2. International Auditing Standards Bureau

3. Institute of Accounting and Standardization Body

4. International Association of Standards Bodies

The correct answer is: International Accounting Standards Board

The correct answer is "International Accounting Standards Board." The IASB is the independent standard-setting body of the IFRS Foundation, responsible for developing and approving International Financial Reporting Standards (IFRS). The purpose of the IASB is to create a common global language for financial reporting, thereby enhancing transparency and comparability of financial statements around the world. This is particularly significant in an increasingly interconnected global economy, where investors, regulators, and other stakeholders require a consistent reporting framework to aid in decision-making. The IASB works to ensure that the standards are principles-based, allowing for the necessary adaptability to various industries and circumstances while maintaining rigorous oversight. The other options provided do not accurately reflect the role or the title of the IASB. For example, "International Auditing Standards Bureau" refers to a different focus involving auditing standards rather than accounting standards. The other options involve made-up organizations or generic descriptions that do not exist in the realm of international financial reporting standards.