The IFRS Foundation has a highly regarded, inclusive and transparent due process for developing IFRS Standards. The IFRS Foundation’s due process is outlined in its Constitution and in further detail in the Due Process Handbook.
The due process enables stakeholders all over the world to contribute to and scrutinise the standard-setting, helping us ensure the best thinking worldwide informs the development of the requirements.
The due process is essential both for developing high-quality IFRS Standards and for ensuring that stakeholders can be confident that all relevant views have been considered when the Standards are developed. The process builds trust, legitimacy and global acceptance of the Standards.
Three underlying principles make our due process robust: transparency, full and fair consultation, and accountability.
The Trustees, who are responsible for the governance of the IFRS Foundation, are also responsible for ensuring that the International Accounting Standards Board, the IFRS Interpretations Committee and the International Sustainability Standards Board follow the due process. The Trustees carry out this responsibility via their Due Process Oversight Committee [DPOC].
All IFRS due-process documents are posted online. The full process is described in detail in our Due Process Handbook.
The steps in the IASB's standard-setting process are outlined below. The DPOC has acknowledged that the ISSB’s due process will develop over time as the ISSB begins operating and its structures and processes are put in place and mature, and that the Due Process Handbook will be updated in the future to reflect those structures and processes.
Page 1 of 5
The Standard Setting Process of International Financial Reporting
Standards by the International Accounting Standards Board [IASB]
Article by Mr. Conor Foley, B. Comm., MAcc., ACA, Dip IFR
Examiner: Formation 2 Financial Accounting
This article provides information on the process of setting International Financial Reporting
Standards used by the IASB.
The Standard Setting Process
International Financial Reporting Standards [IFRSs] are developed through an international
consultation process, the "due process", which involves interested individuals and
organisations from around the world.
The due process comprises six stages, with the Trustees of the IFRS Foundation having the
opportunity to ensure compliance at various points throughout:
1. Setting the agenda
2. Planning the project
3. Developing and publishing the discussion paper
4. Developing and publishing the exposure draft
5. Developing and publishing the standard
6. After the standard is issued