IFRS Foundation Releases Taxonomy 2012
The IFRS Foundation has issued IFRS Taxonomy interim releases 2012 for investment related entities. On the 31st of October 2012, the International Accounting Standards Board had issued Investment Entities ( Amendments to International Financial Reporting Standards 10, 12 and 27), offering an exception to the consolidation related needs in IFRS 10 for investment organizations. This particular Taxonomy from IFRS contains few extra taxonomy related items, which are reflective of the amendment that have been made by investment organizations but are not incorporated in the main IFRS Taxonomy.
Prior to this, the IFRS Foundation had published a variant of the Taxonomy every year, in addition to publishing the IFRS Bound Volume. The International Financial Reporting Standards released after the release of Taxonomy were not supposed to be incorporated into the taxonomy till the release of upcoming main taxonomy in the year that followed. As a result, organizations hoping to report utilizing the new International Financial Reporting Standards as well as the IFRS Taxonomy had to prepare their own items pertaining to taxonomy.
The decision with regard to issuing of IFRS Taxonomy interim releases would foster early and quick adoption of International Financial Reporting Standards, by offering taxonomy related items for the purpose of electronically reporting, utilizing the recent IFRSs that the International Accounting Standards Board has published. This would also ensure that the entities don’t have to design their own items pertaining to taxonomy.
The IFRS Taxonomy interim releases don’t follow the complete due procedure, which is applicable on the Taxonomy but interim releases are subjected to a review that is conducted by IFRS Foundation XBRL Quality Review Team.
The IFRS Foundation is basically a legal organization and the International Accounting Standards Board operates under it. It is governed by an effective board comprising of twenty two trustees.
The main objectives of the Foundation are to develop a set of good quality, enforceable, globally acceptable and understandable reporting standards that are developed on the basis of principles that are articulated clearly. In addition to this, it also aims at promoting the use and application of those reporting standards. The Foundation also focuses on promoting and facilitating adoption of IFRSs.