The IFRS Foundation has a highly regarded, inclusive and transparent due process for developing IFRS Standards. The IFRS Foundation’s due process is outlined in its Constitution and in further detail in the Due Process Handbook.
The due process enables stakeholders all over the world to contribute to and scrutinise the standard-setting, helping us ensure the best thinking worldwide informs the development of the requirements.
The due process is essential both for developing high-quality IFRS Standards and for ensuring that stakeholders can be confident that all relevant views have been considered when the Standards are developed. The process builds trust, legitimacy and global acceptance of the Standards.
Three underlying principles make our due process robust: transparency, full and fair consultation, and accountability.
The Trustees, who are responsible for the governance of the IFRS Foundation, are also responsible for ensuring that the International Accounting Standards Board, the IFRS Interpretations Committee and the International Sustainability Standards Board follow the due process. The Trustees carry out this responsibility via their Due Process Oversight Committee (DPOC).
All IFRS due-process documents are posted online. The full process is described in detail in our Due Process Handbook.
The steps in the IASB's standard-setting process are outlined below. The DPOC has acknowledged that the ISSB’s due process will develop over time as the ISSB begins operating and its structures and processes are put in place and mature, and that the Due Process Handbook will be updated in the future to reflect those structures and processes.
Steps in the IASB standard-setting process
Every five years, the IASB conducts a comprehensive review and consultation to define international standard-setting priorities and develop its project work plan.
The IASB can also add topics to its work plan if necessary between agenda consultations. This can include topics following post-implementation reviews of Standards; the IFRS Interpretations Committee may also request the IASB review an issue.
We begin most projects with research—explore the issues, identify possible solutions and decide whether standard-setting is required. Often, we set out our ideas in a discussion paper and seek public comment.
If we find sufficient evidence that an accounting problem exists, the problem is sufficiently important to warrant changing an Accounting Standard or issuing a new one and a practical solution can be found, we begin standard-setting.
Post-implementation Reviews
After a new Accounting Standard has been in use for a few years, the IASB carries out research through a post-implementation review to assess whether the Standard is achieving its objective and, if not, whether any amendments should be considered. As a result of the post-implementation review, the IASB may start a new research project. Find out more about PIRs here.
If the IASB decides to amend an Accounting Standard or issue a new one, we generally review the research, including comments on the discussion paper, and propose amendments or Accounting Standards to resolve issues identified through research and consultation.
Proposals for a new Accounting Standard or an amendment to an Accounting Standard are published in an exposure draft for public consultation. To gather additional evidence, members of the IASB and IFRS Foundation technical staff consult with a range of stakeholders from all over the world.
The IASB analyses feedback and refines proposals before the new Accounting Standard, or an amendment to an Accounting Standard, is issued.
Our work doesn’t stop once an Accounting Standard is issued. We also support consistent application of the Accounting Standards and we make sure we maintain them.
This process includes consulting on the implementation of a new or amended Accounting Standard to identify any implementation or application problems that may need to be addressed. If issues arise, the IFRS Interpretations Committee may decide to create an IFRIC Interpretation of the Accounting Standard or recommend a narrow-scope amendment. Such amendments follow the IASB's normal due process.
