FORMAL PROCESS OF DEVELOPING IFRS BY IASB

International Financial Reporting Standards are developed through a formal system of due process and broad international consultation that involves accountants, financial analysts and other users of financial statements, the business community, stock exchanges, regulatory and legal authorities and academics.




The formal due process usually involves the following steps:
IASB staff review all the issues associated with the topic and consider the application of the IASB Framework to the issues
Study of national accounting requirements
Consulting the IASB Standards Advisory Council (SAC) about the advisability of adding the topic to the IASB’s agenda
Formation of an advisory group to give advice to the IASB on the project
Publishing a discussion document for public comment
Publishing an Exposure Draft and a Basis for Conclusions
Consideration of all comments received
Consideration of the possibility of holding a public hearing
Approval and publishing of a Standard and a Basis for Conclusions

The formal due process usually involves the following steps:

  • IASB staff review all the issues associated with the topic and consider the application of the IASB Framework to the issues
  • Study of national accounting requirements
  • Consulting the IASB Standards Advisory Council (SAC) about the advisability of adding the topic to the IASB’s agenda
  • Formation of an advisory group to give advice to the IASB on the project
  • Publishing a discussion document for public comment
  • Publishing an Exposure Draft and a Basis for Conclusions
  • Consideration of all comments received
  • Consideration of the possibility of holding a public hearing
  • Approval and publishing of a Standard and a Basis for Conclusions




International Financial Reporting Standards are developed through a formal system of due process and broad international consultation that involves accountants, financial analysts and other users of financial statements, the business community, stock exchanges, regulatory and legal authorities and academics.

RELATED POSTS

7 thoughts on “FORMAL PROCESS OF DEVELOPING IFRS BY IASB”

  1. Pingback: Advantages and limitations of double entry system - ACCOUNTING FREE RESOURCES

  2. Pingback: Types of accounting vouchers - ACCOUNTING FREE RESOURCES

  3. Pingback: Features of double entry system - ACCOUNTING FREE RESOURCES

  4. Pingback: Bases for determining transfer prices

  5. Pingback: IMPORTANCE OF ACCOUNTING STANDARDS (IFRS) - ACCOUNTING FREE RESOURCES

  6. Pingback: meaning of materiality and determine how the level of materiality is assessed. - ACCOUNTING FREE RESOURCES

  7. Pingback: 4 inherent limitations of auditing - ACCOUNTING FREE RESOURCES

Leave a Comment

Your email address will not be published. Required fields are marked *