21 August 2020

IFRS Foundation publishes revised Due Process Handbook

The Trustees of the IFRS Foundation have today published the revised Due Process Handbook, which sets out the procedural requirements of the International Accounting Standards Board (Board) and the IFRS Interpretations Committee and related matters.

The revised Handbook follows a review by the Trustees’ Due Process Oversight Committee (DPOC) to ensure the Handbook remains fit for purpose as a result of developments in the Board’s and the Interpretations Committee’s processes and continues to reflect good practice. This review included a public consultation in 2019 on the proposed amendments.

The DPOC oversees the Board’s and the Interpretations Committee’s compliance with the due process set out in the Handbook. The due process is based on the principles of transparency, full and fair consultation and accountability.

The main changes are:

  • clarifying the authority of agenda decisions published by the Interpretations Committee and their role in supporting consistent application of IFRS Standards, and enhancing the related due process by formally involving the Board in their finalisation; and
  • reflecting recent developments in the Board’s effect analysis process—assessing the likely effects of a new or amended IFRS Standard—that emphasise the role of such analyses in standard-setting and make it clear that such analyses take place at all stages of standard-setting.

In addition, the amendments enhance and streamline the consultation requirements for adding major projects to the Board’s work plan; update and enhance the minimum amount of review required for educational material produced by the IFRS Foundation; and clarify the DPOC’s role in overseeing the IFRS Taxonomy due process.

Alan Beller, Chair of the DPOC, said:

The revised Due Process Handbook ensures that our due process reflects best practice which helps to further enhance stakeholder confidence in the outcomes of the work of the International Accounting Standards Board and the IFRS Interpretations Committee.

To reflect the amendments to the Handbook regarding the Advisory Council, the Trustees have made a corresponding narrow-scope amendment to the IFRS Foundation’s Constitution.

Access the revised Due Process Handbook and the Project Summary and Feedback Statement setting out an overview of the amendments and how the Trustees responded to stakeholder feedback to the consultation on the proposed amendments.

Read an article written by Alan Beller on the due process and why it matters.

View the amended Constitution.

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