The IFRS Foundation Trustees have published proposed updates to the Due Process Handbook (Handbook) to reflect the creation of the International Sustainability Standards Board (ISSB) in 2021.
The Handbook describes the process the Foundation’s standard-setting boards—the International Accounting Standards Board (IASB) and the ISSB—follow in their development, maintenance and application support of IFRS Standards. This due process is built on the principles of transparency, full and fair consultation and accountability.
The Handbook was last updated in 2020, before the ISSB was created. The proposed updates do not change the due process—they primarily ensure the Handbook shows that the ISSB and the IASB follow the same rigorous, inclusive and transparent standard-setting process. The Handbook also describes the due process for the SASB Standards and the SASB Standards Taxonomy, which are maintained by the ISSB.
The Exposure Draft also includes some proposed enhancements and clarifications to the explanation of:
- the purpose of post-implementation reviews of IFRS Standards;
- the IFRS Interpretations Committee’s work with the IASB to support consistent application of IFRS Accounting Standards;
- the process of consulting on packages of minor improvements to the Standards; and
- the review process for education materials.
The Trustees’ Due Process Oversight Committee oversees the due process and the Handbook; it has also led the work to update the Handbook.
Teresa Ko, IFRS Foundation Trustee and Chair of the Trustees’ Due Process Oversight Committee, said:
The due process is fundamental to the successful development of global reporting standards for capital markets. The proposed updates ensure that the Due Process Handbook continues to be an important tool for the IFRS Foundation’s standard-setting boards and stakeholders around the world.
Read and comment on the Exposure Draft
- Read the Exposure Draft Proposed Amendments to the IFRS Foundation Due Process Handbook.
- Submit a comment letter. The consultation is open for comments until 28 March 2025.
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