What is the primary function of the IFRS Advisory Council?

The primary function of the IFRS Advisory Council is to provide advice to the International Accounting Standards Board (IASB) on priority areas of accounting. This council plays a crucial role in ensuring that the IASB is aware of stakeholders' views and can accordingly prioritize tasks and projects that align with the needs of various parties involved in the financial reporting ecosystem.

The advisory nature of the council means it does not have the authority to set accounting standards or interpret specific terms within IFRS standards. Instead, its focus is on gathering input from different stakeholders, which helps guide the IASB in developing and improving accounting standards that are relevant and effective. The council does not engage in audit activities, as that falls under the responsibilities of auditors and audit firms, not the advisory council. Therefore, the role of providing insightful advice on important accounting issues distinguishes the council’s function in the broader context of financial reporting.