IASB (International Accounting Standards Board) follows a rigorous due process for setting International Financial Reporting Standards (IFRS).
VIDEO LINK – https://youtu.be/fs3vV3SoYh8
The steps involved are:
- Identifies areas where new or revised standards are needed, primarily based on the needs of investors for better information. (Sachin Education Hub Notes)
- In this, the IASB decides whether to undertake the project alone or collaborate. Consider the issues, available resources etc.
- The IASB may conduct research to gather information and understand different perspectives on the chosen topic.
- A discussion paper is not mandatory but can be used to stimulate public debate and gather initial feedback on a new standard. (Sachin Education Hub Notes)
- It includes detailed explanations of the proposed requirements, measurement bases, and recognition criteria.
- The IASB invites public comments on the exposure draft, typically for a period of 120 days.
- VIDEO LINK – https://youtu.be/fs3vV3SoYh8
- After the comment period closes, the IASB team carefully considers all the feedback received & revise draft if required. (Sachin Education Hub Notes)
- Once finalized, the IASB formally issues the new or revised IFRS standard, along with an effective date for implementation.
(Notes By Sachin Arora)
(VIDEO LINK – https://youtu.be/fs3vV3SoYh8)
The IASB may conduct a post-implementation review to assess the effectiveness of the new standards.
SACHIN EDUCATION HUB
TELEGRAM CHANNEL – https://t.me/sachineducationhub
