Which of the following is NOT true about the International Accounting Standards Board (IASB)?

• A. The IASB operates independently from national governments.
• B. The IASB enforces compliance with accounting standards in individual countries.
• C. The IASB is based in London, United Kingdom.
• D. The IASB is responsible for developing International Financial Reporting Standards (IFRS).

Answer: (B)

Verified step by step guidance

1. Step 1: Begin by understanding the role and purpose of the International Accounting Standards Board (IASB). The IASB is an independent organization responsible for developing and issuing International Financial Reporting Standards (IFRS), which are used globally to ensure consistency in financial reporting.
2. Step 2: Clarify the IASB's operational structure. The IASB operates independently from national governments, meaning it is not controlled or influenced by any specific country or government entity.
3. Step 3: Note the IASB's location. The IASB is headquartered in London, United Kingdom, which is a factual detail about its physical presence.
4. Step 4: Understand the IASB's scope of authority. While the IASB develops IFRS, it does not enforce compliance with these standards in individual countries. Enforcement is typically the responsibility of national regulatory bodies or governments.
5. Step 5: Compare the statements provided in the problem to the factual information about the IASB. Identify the statement that is NOT true, which is 'The IASB enforces compliance with accounting standards in individual countries,' as enforcement is outside the IASB's scope of authority.