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IASB Internal Review 2004

23 March 2004: IASB Undertakes an Internal Review of its Deliberative Processes

The IASB initiated an internal review of its own deliberative procedures alongside the Trustees' Constitution Review now under way. As part of its internal review, on 23 March 2004 the IASB published a consultation paper, Strengthening the IASB's Deliberative Processes, inviting public comment on certain proposed improvements to its procedures. Comment deadline is 25 June 2004.

The consultation paper cites some steps already taken by the Board to improve its due process and sets out the Board's preliminary views on some further changes:

Steps Already Taken by the IASB:

  • Post observer notes in advance of Board meetings.
  • Include more substantive content in observer notes.
  • Webcast Board meetings live.
  • Provide archived webcasts for those unable to listen live.

Further Changes Under Consideration:

  • Post comment letters on the IASB's website when received, rather than as a batch after the deadline date.
  • Post on the IASB's website a summary of the Board's position on the major points raised in the letters, once they have been addressed.
  • Post changes to EDs when tentatively agreed by the Board, as consideration of an ED progresses.
  • Make available near-final drafts of forthcoming exposure drafts and standards on the Board's website before they have been formally voted for issue.
  • Use existing advisory groups or an appropriate expert group to discuss near-final drafts of exposure drafts and standards.
  • Use advisory groups more regularly.
  • Use field testing and public hearings more regularly.
  • Make greater use of discussion papers.
  • Re-expose proposals when changes are made as a result of comments received.

Click for:

June 2004: Deloitte Letter of Comment to the IASB

Click for Deloitte Letter of Comment to the IASB (PDF 80k).

Discussion of Comments Received by the IASB at the Board's September 2004 Meeting

The IASB invited those with an interest in its work to comment in writing on the improvements being implemented or proposed. The deadline for comments was 25 June 2004.

The Board received 50 submissions commenting on its paper. In general the comment letters support the proposed changes to the deliberative process. Respondents also suggested additional steps for the IASB's due process.

The Board indicated that its intention as a result of this process was to publish a manual similar to the FASB Rules of Procedure that sets out the principles that underlie the deliberative process without setting detailed procedures.

The Board discussed the following:

  • There seemed to be some misunderstanding amongst respondents about the differences between field tests and field visits as evidenced by certain comments received. The Board clarified that field tests would be undertaken on a selective basis at the discretion of the IASB.
  • Staff noted that on the whole, the suggestions made by the IASB were generally viewed as adequate, but there remained a need for the Board to communicate better and more visibly, the processes that it undertakes in developing Standards.
  • The Board disagreed with requests for it to perform an impact analysis for each major project. The scope for such analysis would be too wide. The Board underscored its role, which is to set high quality accounting Standards and that this should not be confused with the perception that the IASB is responsible for directing capital markets. The Board will consider adding this to the conceptual framework.
  • Although updates to the Trustees are currently presented by the Chairman of the Board, Staff suggested that this be more formalised in future.
  • The Board noted that in the recent past, comment periods to exposure drafts have been relatively short, primarily due to the 2005 deadline. The Board agreed to extend the time frames given to constituents in future.
  • Publishing of near final exposure drafts was seen as not serving any particular interest. Instead, the Board will only publish near final drafts as this is viewed as more useful to constituents. Project summaries will continue to be made available on the IASB website.

[MATCHED]April 2006: New IASB Due Process Handbook

In April 2006, the Trustees of the International Accounting Standards Committee Foundation published a new Due Process Handbook for the IASB. The Handbook describes the IASB's consultative procedures. Those procedures require that all decisions are made in public meetings and that proposals receive appropriate public scrutiny. The Due Process Handbook does not mark a significant change in existing IASB practice and is meant to provide interested parties and the general public with a better understanding of the IASB's operations. The Trustees had finalised the handbook at their March 2006 meeting.

Click for Press Release (PDF 57k).

Click here to download the Due Process Handbook (PDF 463k).

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