Explain the functions of the International Accounting Standards Board (IASB) in developing global accounting standards.

The International Accounting Standards Board (IASB) is responsible for developing and promoting the use of global accounting standards, known as International Financial Reporting Standards (IFRS). The functions of the IASB in developing these standards include:

1. Setting accounting standards: The IASB establishes and updates accounting standards that are applicable globally. These standards provide guidance on how financial statements should be prepared and presented, ensuring consistency and comparability across different countries and industries.

2. Conducting research: The IASB conducts extensive research to identify emerging accounting issues and challenges. This research helps in developing new accounting standards or revising existing ones to address the evolving needs of the global business environment.

3. Consultation and collaboration: The IASB actively engages with various stakeholders, including national standard-setters, regulators, investors, and preparers of financial statements. This consultation process allows for input and feedback from different perspectives, ensuring that the resulting accounting standards are comprehensive and practical.

4. Monitoring and interpretation: The IASB continuously monitors the implementation and interpretation of its accounting standards worldwide. It provides guidance and clarifications on the application of these standards through interpretations and educational materials, ensuring consistent and accurate reporting.

5. Convergence efforts: The IASB works towards achieving convergence between IFRS and national accounting standards. This involves collaborating with other standard-setting bodies, such as the Financial Accounting Standards Board (FASB) in the United States, to reduce differences and promote global consistency in financial reporting.

Overall, the IASB plays a crucial role in developing global accounting standards that enhance transparency, comparability, and reliability in financial reporting, thereby facilitating international trade, investment, and economic growth.