The IFRS Interpretations Committee (Interpretations Committee) works together with the Board in supporting the application of IFRS Standards. In order to do this, it needs input from external stakeholders.
Interpretations Committee Process
All Interpretations Committee projects begin life as an external question regarding an aspect of a Standard. The process is designed to:
- allow any stakeholder to submit a question—you can submit a question to the Interpretations Committee below; and
- be open and transparent—all submissions get considered at a public meeting.
The Interpretations Committee then follows a process summarised in the Due Process Handbook to decide whether to add a standard-setting project to its agenda to address the question, or whether to take an alternative approach. Open questions currently being considered by the Interpretations Committee can be viewed here.
Some questions result in standard-setting activity, such as improving or clarifying existing Standards. Information about all active Interpretations Committee projects can be viewed here.
In many cases, the Interpretations Committee decides not to undertake any standard-setting activity. This might be because the Interpretations Committee concludes that standard-setting activity would not be:
- necessary—normally because there is enough information contained within existing IFRS Standards and Interpretations for an entity to determine its accounting; or
- helpful—for example, introducing new or amended requirements might assist one entity with a particular type of transaction, but could raise questions for other entities with similar, but different, types of transaction; or
- appropriate—for example, because the question is too broad in scope to be addressed within the remit of the Interpretations Committee.
In these cases, the Interpretations Committee publishes an Agenda Decision. In many cases, Agenda Decisions include information to help those applying IFRS Standards. For example, if the Committee concludes that IFRS Standards already contain enough information to determine the appropriate accounting, the Agenda Decision might highlight the relevant paragraphs or provide other educative information about the application of IFRS Standards.
Find out more about the Interpretations Committee, its meetings and members here.
Any individual or organisation may put forward suggestions of potential agenda items for consideration by the Interpretations Committee. In considering whether to put forward suggestions, all parties should consult the ‘Identification of Matters’ section (paragraphs 5.14 to 5.22) of the IASB and IFRS IC Due Process Handbook.
Anyone doing so is asked to submit a brief proposal, which will be presented to the Interpretations Committee without identifying the submitter.
The proposal should include the following:
- The issue: A description of the issue including, where relevant, any aspects that should be addressed separately.
- Current practice: A brief description of current or emerging accounting practices, outlining the major alternatives, and referring to the relevant requirements in IFRS Standards.
- Reasons for the Interpretations Committee to address the issue: The issue should be evaluated using the following criteria:
- Is the issue widespread and has, or is expected to have, a material effect on those affected?
- Would financial reporting be improved through the elimination, or reduction, of diverse reporting methods?
- Can the issue be resolved efficiently within the confines of IFRS Standards and the Conceptual Framework for Financial Reporting?
- Is the issue sufficiently narrow in scope that the Interpretations Committee can address this issue in an efficient manner, but not so narrow that it is not cost-effective for the Interpretations Committee to undertake the due process that would be required when making changes to IFRS Standards?
Will the solution developed by the Interpretations Committee be effective for a reasonable time period? The Interpretations Committee will not add an item to its agenda if the issue is being addressed in a forthcoming Standard and/or if a short-term improvement is not justified.
Please submit your suggestion by email to firstname.lastname@example.org
You can also post your suggestion to:
Director of Implementation Activities
30 Cannon Street