Due process steps and permission to publish the Request for Information (Agenda Paper 24)

The IFRS Foundation Due Process Handbook requires the Board to undertake an agenda consultation every five years by way of a Request for Information (RFI), and specifies that its objectives are to seek formal public input on the following areas:

• Strategic direction and balance of the Board’s activities
• The criteria for assessing the priority of financial reporting issues that may be added to the work plan
• Financial reporting issues that should be given priority in the Board’s work plan (potential projects)

The Board is now undertaking its third agenda consultation. The agenda consultation focuses on activities within the current scope of the Board’s work—financial statements and management commentary for profit-oriented companies. The final output of the agenda consultation will be the Board’s activities and work plan for 2022 to 2026.

The staff is satisfied that all required due process steps have been undertaken and asked the Board to give them permission to publish the RFI.

The staff recommended 120 days as a comment period for the RFI—the minimum period required by the IFRS Foundation’s Due Process Handbook. While the staff appreciate that a 180-day comment period may alleviate potential constraints on stakeholder resources brought by the COVID-19 pandemic, they recommended a 120-day comment period given a strategic consultation may be less time-consuming to respond to.

Board discussion

One Board member suggested to initially set 120 days for the comment period, but extend this period if there is feedback from constituents during the comment period that 120 days is too short. She also asked if the staff had already heard anything from constituents on this topic. The staff responded that there was some feedback from constituents, particularly from jurisdictions that have been badly affected by the pandemic, however that is not universal feedback from all jurisdictions. Another Board member said he had heard many concerns from the practice about consultation overload and recommended extending the comment period to 180 days.

Board decisions

All Board members agreed that all due process steps have been undertaken and gave permission to publish the RFI.

12 of the 13 Board members agreed with a comment period of 120 days for the RFI.