IFRS Foundation publishes revised Due Process Handbook

  • IFRSF document (blue) Image

21 Aug 2020

The Trustees of the IFRS Foundation have issued an updated IFRS Foundation Due Process Handbook. The most important changes regard the clarification of the authority of agenda decisions published by the Interpretations Committee and an additional due process step with requires the Board to vote on and agree with agenda decisions.

The Handbook continues to note that agenda decisions do not have the status of IFRSs and cannot add or change requirements in the standards, however, it now also states that in many cases an agenda decision includes explanatory material that explains how principles and requirements in IFRSs apply to the transaction or fact pattern described in the agenda decision. As these explanations "may provide additional insights that might change an entity’s understanding of the principles and requirements in IFRS Standards", the Handbook states that entities might determine that they need to change an accounting policy as a result of an agenda decision. The Handbook goes on to note: "It is expected that an entity would be entitled to sufficient time to make that determination and implement any necessary accounting policy change."

The additional due process step regarding agenda decisions consist of the Board being asked whether it objects to the agenda decision. Two aspects will be considered:

  • Whether the Board objects to the Interpretations Committee’s decision that a standard-setting project should not be added to the work plan; and
  • whether the Board objects to the Interpretations Committee’s conclusion that the agenda decision does not add or change requirements in IFRS Standards.

If four or more Board members object, the agenda decision is not published and the Board decides how to proceed.

Please click for the following additional information on the IASB website:

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.