What does the IFRS Interpretations Committee primarily do?

The IFRS Interpretations Committee plays a crucial role in the international financial reporting landscape by providing interpretations and guidance on existing International Financial Reporting Standards (IFRS). While the International Accounting Standards Board (IASB) is responsible for establishing new financial reporting standards, the Committee focuses on ensuring that IFRS are applied consistently across different jurisdictions.

This involves addressing issues that may arise in practice and providing authoritative interpretations to clarify how certain aspects of the standards should be understood and applied. As a result, the Committee ensures that all stakeholders have a clearer understanding of the standards, thereby promoting transparency and comparability in financial statements prepared under IFRS.

The other options, while relevant to the context of financial reporting, do not accurately describe the primary function of the Committee. For example, establishing new standards or conducting audits is outside the Committee's mandate. Additionally, while setting objectives for financial statements is crucial, this responsibility falls more to the IASB rather than the Interpretations Committee.