Objective

The IASB undertakes a Post-implementation Review (PIR) of each new IFRS Accounting Standard or major amendment. A PIR is an opportunity for the IASB to assess the effect of the new requirements of an IFRS Accounting Standard on investors, companies and auditors. In undertaking a PIR the IASB 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 IASB when it developed the Standard; and
  4. the requirements are capable of being applied consistently.

These assessments help the IASB 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 IASB 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 IASB normally begins a PIR after the IFRS Accounting 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 IASB’s advisory groups and other interested parties. The IASB 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 IASB 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 IASB 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 IASB 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