Under the IASC Foundation Constitution, the IASB will normally form working groups or other types of specialist advisory groups to give advice on major projects. Before setting up a working group, the IASB advertises for nominations and applications. The composition of a working group reflects the diversity and breadth of interest involved in a particular area. The IASCF Trustees' Procedures Committee reviews the proposed composition of each group to ensure that there is a satisfactory balance of perspectives. An IASB member serves as chairman.

Members of a working group serve in their personal capacity. They are not appointed to act as delegates or representatives of any group

Meetings of working groups are attended by some IASB members and technical staff. Those meetings are open to public observation.

The IASB has formed advisory groups on the following projects:

• IFRS for Small and Medium-Sized Entities
• Financial Instruments
• Insurance
• Performance Reporting (joint IASB-FASB working group)
• Leases (joint IASB-FASB working group)
• Employee Benefits

Role of Working Groups

In the early phases of a project, working groups help identify issues, alternative approaches, and priorities.

As a project moves through deliberations, the Board asks working groups to advise on key issues, especially as those issues may raise implementation questions.

After the Board has issued a discussion document and an exposure draft, advisory groups help the Board to understand and analyse the comments received.

The role of a working group is advisory. Working groups are not asked to reach consensus views or to make recommendations as a group.

The Board has formed a number of other specialised advisory groups in addition to working groups, including:

• Analyst Representative Group
• Global Preparers Forum
• Financial Crisis Advisory Group (jointly with FASB)

Expert Advisory Panel on Impairment of Financial Instruments Measured at Amortised Cost

In November 2009, when it issued an Exposure Draft on Impairment of Financial Instruments Measured at Amortised Cost, the IASB announced that because of significant practical challenges in moving to an expected loss model, the IASB will establish an Expert Advisory Panel comprising experts in credit risk management to advise the board.

Expert Advisory Panel on Valuation of Financial Instruments

In June 2008, the IASB formed an expert advisory panel on valuation of financial instruments in inactive markets. The new panel will assist the IASB in:

• reviewing best practices in the area of valuation techniques, and
• formulating any necessary additional practice guidance on valuation methods for financial instruments and related disclosures when markets are no longer active.

The panel completed its work in October 2008. The IASB published its Report as guidance.