ACCA FR Syllabus A. The Conceptual And Regulatory Framework - Standard Setting Process - Notes 4 / 6
International Financial Reporting Standards (IFRSs) are developed through an international consultation process, the "due process".
The due process comprises six stages:
Setting the agenda
The IASB identifies a subject (mainly by reference to the needs of the investors)
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
Developing and publishing the discussion paper
Developing and publishing the exposure draft
for public comment, which is a draft version of the intended standard
Developing and publishing the standard
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:
Interpret the application of IFRSs
Provide timely guidance on financial reporting issues not specifically addressed in IFRSs
Publish draft Interpretations for public comment