The Board undertakes a Post-implementation Review (PIR) of each new IFRS Standard or major amendment. A PIR is an opportunity for the Board to assess the effect of the new requirements of an IFRS Standard on investors, companies and auditors. In undertaking a PIR the Board assesses whether:

  1. the objectives of the standard-setting project have been met;
  2. information provided by the Standard is useful to users of financial statements;
  3. the costs arising in preparing, auditing, enforcing, or using the information provided by the Standard are broadly as expected by the Board when it developed the Standard; and
  4. the requirements are capable of being applied consistently.

These assessments help the Board determine what, if any, action it might take relating to the new requirements. The findings of a PIR can also be useful input for the standard-setting process.

A PIR is not an opportunity to redeliberate information the Board considered when it developed the new requirements. Rather, a PIR considers new information resulting from the application of those requirements, and from developments in the market since those requirements were issued.

The PIR process

The Board normally begins a PIR after the IFRS Standard has been implemented for two years internationally, which is generally about 30–36 months after the effective date.

The first phase of the PIR involves the initial identification and assessment of the matters to be examined, drawing on discussions with the IFRS Interpretations Committee, the Board’s advisory groups and other interested parties. The Board consults publicly on the matters identified in the first phase of the PIR. It also reviews relevant academic studies and other reports and may conduct surveys and other outreach.

In the second phase of the PIR, the Board considers the comments from the public consultation along with the information it has gathered from any additional analysis and other consultative activities.

At the end of the PIR the Board publishes a Report and Feedback Statement summarising its findings and the steps it plans to take, if any, as a result of the PIR. The next steps may include providing educational materials or undertaking follow-up research work for possible standard-setting, depending on the nature of the topic and the evidence provided by the PIR. In making any decision to undertake possible standard-setting, the Board would consider the costs and benefits of considering potential changes to a Standard.

Forthcoming PIR projects:

  • PIR of IFRS 15 Revenue from Contracts with Customers
  • PIR of IFRS 9 Financial Instruments—Impairment; Hedge Accounting
  • PIR of IFRS 16 Leases