A new and innovative way to obtain input: While the document was out for comment, the AASB coordinated field testing of the proposed new standard – a first for the Board and its stakeholders. This field testing was done in addition to traditional consultation activities to collect input, which included written comment letters from stakeholders and in-person and virtual roundtable sessions.

One of the Board’s strategic priorities is to better engage stakeholders in the standard-setting process, with field testing offering a new and innovative way for the stakeholders to provide input into proposed standards.

Field testing has specific benefits for accounting firms. It allows them to develop a better understanding of how a new standard might affect their current auditing approaches. The process to share experiences with other firms lets participants compare their audit approach with others, and determine whether the way they would address the changes is consistent with colleagues in other firms. Some firms also see it as an alternative to providing a written response letter or attending a roundtable session.

The testing examined whether the proposals could be:

• clearly understood and consistently interpreted;
• applied to a wide range of accounting estimates with different characteristics; and
• usable by various types of practitioners and applicable to organizations of different sizes and in different industries.

Throughout the field testing, participants met with AASB staff and other contributors to discuss the process, explore findings they encountered, identify issues and provide suggestions for improvement in the standard.

Review the publication on the AASB's website.