The Board, AABE policy intention is to adopt the IFRS Accounting Standards issued by the International Accounting Standards Board (IASB). However, while the Financial Reporting and Auditing Standards Committee, (FRASC) will track closely the introduction of new IFRS Accounting Standards for possible adoption in Ethiopia, it will also take into account the local economic and business circumstances and context, as well as the entity to which the IFRS Accounting Standards, International Standards on Audit (ISA), IPSAS and International Ethics Standards would apply to.

The sub-committee adopts a formal and rigorous process in making or formulating accounting standards so as to ensure that the accounting standards made or formulated are of a consistent high quality. The various sectors and stakeholder groups are all given adequate opportunities to express their views.

The FRASC contributes actively to the IASB, through proactively surfacing views relating to local specific issues on the IASB’s projects for the IASB’s attention and consideration. These include participation at standard-setters meetings, reviewing and commenting on relevant IASB’s projects, and working with the IASB liaison representatives. The FRASC also sees the benefit of collaborating with national standard-setters in the region, such as through the Pan African Federation of Accountants (PAFA). The full listing of objectives of PAFA are available on the PAFA website.