Translating the International Financial Reporting Standards

1
Translating the International Financial Reporting
Standards

• Ioanna Tzivani
• Translation Project Manager

2
The IASB

• The International Accounting Standards Board
  (IASB) is the standard-setting body.
• Objectives
• (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
  worlds capital markets and other users make
  economic decisions
• (b) to promote the use and rigorous application
  of those standards
• (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.

3
The IASC Foundation

• The International Accounting Standards Committee
  Foundation (IASCF) exists to support the IASB.
• The IASCF is a not-for-profit organisation.
• The IASCF raises funds for the Board through
  donations and product sales.
• The IASCF has 61 permanent members on staff,
  excluding Board members.

4
The IASCF Process What if we didnt have it?

• Market confusion
• Without centrally coordinating the translation
  proces, there could be more than one translations
  per language.
• Barrier to implementation and adoption
• The IASCF process includes translation and review
  by industry experts eliminating errors and
  inconsistencies.

5
The IASCF Process Why?

• The IASCF translation process was created
• to ensure that for each language a single,
  authoritative, high-quality translation of the
  IFRSs is available.
• to ensure that best practice and experience are
  passed on.
• to sustain a process in each language which will
  cover not only translation, but also corrections.
• The IFRSs are currently translated into over 40
  languages
• The IASCF translation team consists of 3 members
  of staff.

6
Official Translation Process How?
7
Official Translation Process Steps

• Step 1 Terminology identify Key Terms in
  English,
• translate and review
• Example Effect of Depreciation and
  Amortisation
• Differences on Fair Value
  Adjustments
• Step 2 Translate the Standards, using existing
• IFRS translations as reference, and
  CAT tools
• Step 3 Review of translated Standards by
  experts
• Step 4 Run checks, correct, release.

8
Adoption of the IFRSs

• Most European governments outside the European
  Economic Area choose to adopt the IFRSs as
  national legislation.
• To enable adoption, the IASCF waives its rights
  to the bare, numbered Standards within the
  jurisdiction.
• Where an IFRS translation exists prior to
  adoption, the IASCF makes it available to the
  adopting jurisdiction, for review and government
  adoption.
• The IASCF encourages the translation and
  publication of the full IFRS bound volume,
  regardless of the adoption and publication of the
  bare, numbered Standards.

9
Adoption of the IFRSs the EU model

• Process before November 2005
• IASB issues IFRS
• European Commission receives English text of the
  bare, numbered IFRS
• European Financial Reporting Advisory Group
  offers its views on the endorsement of the IFRS
• IASCF translates IFRS
• IASCF review committee reviews translation
• QA checks
• Deliver translation to European Commission
• Accounting Regulatory Committee receives
  translation
• Adoption and publication in Official Journal

10
Status of IFRS translationsin South Eastern
Europe

• Albania
• Bosnia Herzegovina
• Bulgaria
• Croatia
• Kosovo (UNSCR1244)
• fYR Macedonia
• Moldova
• Romania
• Serbia Montenegro (Republic of Montenegro)
• Serbia Montenegro (Republic of Serbia)
• Turkey
• Ukraine

11
Questions?

• iTzivani_at_iasb.org

• www.iasb.org/resources/translations.asp