- 5 Marks
Question
As a newly qualified accountant with The Institute of Chartered Accountants (Ghana) (ICAG), you are asked to make a short presentation to the rest of the staff in the accounting and finance department of your employer who are themselves yet to join ICAG as students about the standard-setting process adopted by the International Accounting Standards Board (IASB).
Required:
Discuss the standard-setting process as adopted by the IASB to these junior staff.
Answer
- Issues Paper:
IASB staff prepare an issues paper, including studying the approach of national standards setters and identifying key accounting issues. - SAC Consultation:
The Standards Advisory Council (SAC) is consulted about the advisability of adding the topic to the IASB’s agenda. - Discussion Document:
A Discussion Document may be published for public comment, allowing stakeholders to provide input on the proposed standard. - Exposure Draft:
An Exposure Draft is published for public comment. This draft represents the first version of the proposed standard and invites further feedback. - International Financial Reporting Standard (IFRS) Finalization:
After considering all comments received during the exposure draft period, the IFRS is finalized. The final standard must be approved by at least 8 votes (out of 14) from the IASB board members.
The final standard includes both a basis for conclusions and any dissenting opinions.
Each step is part of a thorough process to ensure that new or revised standards are well-considered, incorporating global perspectives and feedback.
- Tags: Accounting Standards, IASB, IFRS, Standard-setting process
- Level: Level 2
- Topic: Role of the IASB and Standard-Setting Process
- Series: MAY 2016
- Uploader: Kwame Aikins