International Accounting Standards
Once this is decided, they set up a working group the Director of Technical Activities and Director of Research select this team (International Accounting Standards Board, n. d. ) The third step is development and publication of a discussion paper. The IASB usually publishes new topics to explain the issues and to get any comments back from the constituents. In the publication they will state an overview of the issue, how to address the issue, view of the IASB and an invitation for comment (International Accounting Standards Board, n. d. ). The fourth step is the publication of an exposure draft.
This step is mandatory in the due process. The IASB will consider the issues based on staff research and recommendations, comments receive on any discussion paper and suggestions made by the SAC, working groups and accounting standard setters. Once the issues are resolved there is a draft made up. Then the draft is voted on; once voted on this draft will be published for public comment (International Accounting Standard Board, n.
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d. ) Step five, is developing and publishing the standard. After all comments are received on the draft, the IASB will consider revising or not.
When considering revising the IASB will check for substantial issues that emerge during the comment period on the exposure draft that it had not previously considered. They assess the evidence that has considered. They evaluate if they have fully understood the issues and have made sure the people views are on the same issues. The IASB considers the different view points in the draft and to make sure they have been reviewed in the correct context for its conclusions (International Accounting Standards Board, n. d. ) The last step in developing standard is after the standard is issued.
Once issued, there will be ongoing meetings with all parties to help understand any unanticipated issues in implementation and any potential issues to come. After some time, the IASB may consider a review of the application, any changes in the financial reporting requirements and comments raised by any constituents. Two of the latest standards are consolidation and derecognizing. With the consolidation, the IASB is replacing two previously IFRS.