The Discussion Paper ‘Considering the Effects of Accounting Standards’ has been published as part of the European proactive agenda for stimulating the global accounting debate and influencing the direction of IFRS. The intention is to encourage discussion of the issues set out in the DP and to use feedback from the consultation process to assess support for the proposals and enhance them, so that they can form the basis of possible improvements to the IASB’s due process.
The issue of whether and how standard setters should take account of the wider effects, or consequences, of the accounting standards they develop has been a subject of debate for decades, without satisfactory resolution. The issue has received more attention in recent years with public policy makers around the world increasingly challenging the lack of evidence to support new accounting standards and to assess the effectiveness of those that have been implemented. This has led to the inclusion of a requirement for an analysis of the anticipated effects of a new IFRS or a major amendment to an IFRS in the ‘Due Process Handbook for the IASB’ (October 2008 version). Whilst acknowledging the progress that has been made by the IASB, the challenge remains as to how to best implement that requirement systematically in their due process. The Discussion Paper is an important step in addressing that challenge.
The Discussion Paper is open for comment until 31 August 2011.
Press release
© FRC
Key
Hover over the blue highlighted
text to view the acronym meaning
Hover
over these icons for more information
Comments:
No Comments for this Article