What is the primary function of the International Accounting Standards Board (IASB)?

The primary function of the International Accounting Standards Board (IASB) is to develop and issue International Financial Reporting Standards (IFRS), which are used by many countries around the world, especially outside of the United States. The Board aims to create a common global framework for financial reporting to enhance transparency and comparability among financial statements across different jurisdictions. This is essential for investors and stakeholders who operate in multiple countries and rely on consistent and reliable financial information.

Under the IFRS, the IASB focuses on a principles-based approach that strives to improve the relevance and reliability of financial reporting. This contributes to better decision-making by providing a clearer picture of an entity's financial health and performance.

While the oversight of tax standards, stock exchange activities, and auditing international corporations is important, these functions fall outside the primary mandate of the IASB. It is specifically tasked with the development of accounting standards rather than regulatory activities or auditing functions.