How the IFRS Interpretations Committee helps implementation

The IFRS Interpretations Committee (Interpretations Committee) works with the International Accounting Standards Board (Board) in supporting the application of IFRS® Standards. 

Interpretations Committee process

All Interpretations Committee projects begin as a question regarding a Standard. The process is designed to:

  • allow any stakeholder to submit a question; and
  • be open and transparent—all submissions are considered at a public meeting.

The Interpretations Committee then decides whether standard-setting is needed to address the question, or whether to take an alternative approach.

Agenda decisions

The Interpretations Committee may decide not to recommend standard-setting. This might be because the Interpretations Committee concludes that standard-setting is:

  • unnecessary—typically because, in the Interpretations Committee’s view, IFRS Standards and IFRIC® Interpretations provide enough information for a company to determine its accounting or because there is no evidence that a widespread accounting problem exists; or
  • unhelpful—for example, introducing new or amended requirements might assist one company with a particular type of transaction, while raising questions for other companies with slightly different types of transactions.

To explain why it did not recommend standard-setting, the Interpretations Committee publishes an agenda decision. Agenda decisions are subject to due process. They are open for comment for 60 days and, before finalising, the Interpretations Committee considers comments. 

Agenda decisions often include information to help companies applying IFRS Standards. They do so by explaining how the applicable principles and requirements in the Standards apply to the question submitted.

Narrow-scope standard-setting

Some questions result in narrow-scope standard-setting that follows the normal due process. The Interpretations Committee may decide to:

  • develop an IFRIC Interpretation of a Standard—this adds to the requirements in a Standard without changing the Standard itself; or
  • recommend a narrow-scope amendment to a Standard.
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