The Trustees of the IFRS Foundation have issued an updated IFRS Foundation Due Process Handbook for public comment.
The updated Handbook includes due process enhancements recommended by the recent Monitoring Board Governance Review and Trustees' Strategy Review. It also includes recommendations from the Trustees' Review of the Efficiency and Effectiveness of the IFRS Interpretations Committee (IFRIC).
The proposals are aimed to:
- consolidate due process requirements of the IASB and IFRIC to a single document
- provide an in-depth discussion of the process of evaluating the effects of an IFRS
- describe a more detailed process when developing post-implementation reviews
- allow the Monitoring Board to refer issues of consideration by the IASB
- include consideration to the due process requirements during outreach activities conducted by the IASB
- integrate other enhancements resulting from conversations with the Trustees' Due Process Oversight Committee.
The updated Handbook is a significant rewrite of existing requirements, introducing many new policy level objectives and formalising current practice.
Comments on Invitation to Comment IASB and IFRS Interpretations Committee Due Process Handbook are due by 5 September 2012.
|Summary of significant changes
- The handbook no longer refers to the liaison roles that the IASB had with individual standard-setters when it was first set up. The section is now broader and anticipates the likely steps that the IASB will take to develop a more formal network of standard-setters and others
- The handbook includes a more extensive discussion of the process of assessing the likely effects of an IFRS. More importantly, the handbook reflects the fact that the IASB has begun the process of embedding this assessment throughout the development of an IFRS rather than simply having an assessment document at the end of the process
- The handbook now describes the three-yearly consultation on the IASB technical work programme and clarifies that the focus of the review is strategic and is not designed to add individual projects to the IASB’s technical work programme
- A research programme is described and is expected to become the development base from which potential standards-level projects will be identified. The use of a Discussion Paper as the first external due process document has been moved into this research programme phase and would precede a proposal to add a standards-level project to the IASB technical work programme.
- A new section has also been added that describes the oversight of the Conceptual Framework as a standing activity of the IASB
- A new section on maintenance has been added, which formalises the practice that the IASB and the Interpretations Committee have been following for addressing matters that are narrow in scope
- Two changes to comment periods are proposed: (1) to increase the minimum comment period for exposing the draft of a rejection notice for an Interpretation from 30 days to 60 days (2) allow the IASB to have a reduced comment period for documents it plans to re-expose (minimum comment period of 60 days)
- The sections explaining post-implementation reviews have been expanded and now describe in more detail how the IASB expects to develop each review
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