The IASB, by developing high quality accounting standards, seeks to address a demand for better-quality information that is of value to all users of financial statements. Better–quality information will also be of value to preparers of financial statements.
The IASB evaluates the merits of adding a potential item to its agenda mainly by reference to the needs of investors.
The IASB considers:
- the relevance to users of the information and the reliability of information that could be provided
- whether existing guidance is available
- the possibility of increasing convergence
- the quality of the standard to be developed
- resource constraints.
To help the IASB in considering its future agenda, its staff are asked to identify, review and raise issues that might warrant the IASB’s attention.
New issues may also arise from a change in the IASB’s conceptual framework. In addition, the IASB raises and discusses potential agenda items in the light of comments from other standard-setters and other interested parties, the IFRS Advisory Council and the IFRS Interpretations Committee, and staff research and other recommendations.
The IASB receives requests from constituents to interpret, review or amend existing publications. The staff consider all such requests, summarise major or common issues raised, and present them to the IASB from time to time as candidates for when the IASB is next considering its agenda.
The IASB’s discussions of potential projects and its decisions to adopt new projects take place in public IASB meetings.
Before reaching such decisions the IASB consults the IFRS Advisory Council and accounting standard-setting bodies on proposed agenda items and setting priorities. In making decisions regarding its agenda priorities, the IASB also considers factors related to its convergence initiatives with accounting standard-setters.
The IASB’s approval to add agenda items, as well as its decisions on their priority, is by a simple majority vote at an IASB meeting.