We follow a thorough, open, participatory and transparent due process when we issue an IFRS Standard or an IFRIC Interpretation that helps companies better implement our Standards. Our standard-setting entails:
- public Board meetings broadcast live from our London office;
- agenda papers that inform the Board's deliberations;
- discussion and decision summaries that are made available after meetings; and
- comment letters received on our consultation documents.
All IFRS due-process documents are posted online. The full process is described in detail in our Due Process Handbook.
Steps in the standard-setting process
Every five years, the Board conducts a comprehensive review and consultation to define international standard-setting priorities and develop its project work plan.
The Board can also add topics to its work plan if necessary between agenda consultations. This can include topics following Post-implementation Reviews of Standards; the IFRS Interpretations Committee may also request the Board review an issue.
We begin most projects with research—explore the issues, identify possible solutions and decide whether standard-setting is required. Often, we set out our ideas in a discussion paper and seek public comment.
If we find sufficient evidence that an accounting problem exists, the problem is sufficiently important to warrant changing a Standard or issuing a new one and a practical solution can be found, we begin standard-setting.
If the Board decides to amend a Standard or issue a new one, we generally review the research, including comments on the discussion paper, and propose amendments or Standards to resolve issues identified through research and consultation.
Proposals for a new Standard or an amendment to a Standard are published in an exposure draft for public consultation. To gather additional evidence, members of the Board and IFRS Foundation technical staff consult with a range of stakeholders from all over the world.
The Board analyses feedback and refines proposals before the new Standard, or an amendment to a Standard, is issued.
Our work doesn’t stop once a Standard is issued. We also support implementation of the Standards and we make sure we maintain them.
This process includes consulting on the implementation of a new or amended Standard to identify any implementation problems that may need to be addressed. If issues arise, the IFRS Interpretations Committee may decide to create an IFRIC Interpretation of the Standard or recommend a narrow-scope amendment. Such amendments follow the Board's normal due process.
After a new Standard has been in use for a few years, the Board carries out research through a Post-implementation Review to assess whether the Standard is achieving its objective and, if not, whether any amendments should be considered. As a result of the Post-implementation Review, the Board may start a new research project.