Standard Setting Process 4 / 6

International Financial Reporting Standards (IFRSs) are developed through an international consultation process, the "due process".

The due process comprises six stages:

  1. Setting the agenda

    The IASB identifies a subject (mainly by reference to the needs of the investors)

  2. Planning the project

    After considering the nature of the issues and the level of interest among constituents, the IASB may establish a working group at this stage

  3. Developing and publishing the discussion paper

  4. Developing and publishing the exposure draft

    for public comment, which is a draft version of the intended standard

  5. Developing and publishing the standard

  6. After the standard is issued, the staff and the IASB members hold regular meetings with interested parties, to help understand unanticipated issues related to the practical implementation and potential impact of its proposals

The IFRS Interpretations Committee

It has the following roles:

  1. Interpret the application of IFRSs

  2. Provide timely guidance on financial reporting issues not specifically addressed in IFRSs

  3. Publish draft Interpretations for public comment

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