Due Process (Agenda Paper 31)

Background

The objective of the project is to develop an IFRS Standard (reduced disclosure IFRS Standard) that will permit subsidiaries that are small and medium-sized entities (SMEs) to apply IFRS Standards but with reduced disclosure requirements.

This agenda paper discussed the Board’s agreed approach to the project. It also discussed the timeline, summary of the due process steps and comment period for the ED.

Staff recommendation and questions for the Board

• The staff requested permission from the Board to begin the balloting process for the ED if the Board is satisfied that it has complied with the applicable due process steps.
• The staff asked the Board if any member intend to dissent from the proposals in the ED.
• The staff recommended that the comment period is set at 120 days for the ED.

Board discussion and voting

All members of the Board voted in favour to begin the balloting process for the ED.

One Board member confirmed intention to dissent from the proposals in the ED.

Board members recognised that the 120 day period set by the Due Process Handbook is the minimum period required for comment on an exposure draft. However, Board members preferred to set a longer comment period since the coverage of the proposed reduced disclosure framework is pervasive and laborious for the intended users.

When asked to vote, 5 out of 13 Board members voted in favour of the staff recommendation of a comment period of 120 days.

When asked to vote on a comment period of 180 days, 7 out of 13 Board members voted in favour.