STANDARD SETTING PROCESS OF IFRS BY THE IASB

IFRS standards are set by the IASB and are used primarily by publicly accountable
companies-those listed on a stock exchange and by financial institutions,such as
Banks.The Board has also developed the IFRS for SMEs which is used by small
and medium-sized companies without public accountability.The steps in the standard
setting process are as follows:-

 (1) Setting the agenda:-The Board conducts a comprehensive review and

agenda consultation to define international standard-setting priorities and
develop its project work plan every five years.The Board can also add
topics to its work plan if necessary between setting up of the agenda
consultations.
 (2) Planning the project:-Most projects are planned with proper resarch
which helps to explore the possible financial reporting problems,identify
possible solutions for this and decide whether standard-setting is
required.New ideas are also taken from public comment and interested
parties in a discussion paper that can help the IASB decide whether to add a
project to its standard setting programme.
 (3) Developing and publishing the discussion paper:-Discussion papers
generally arise from the IASB resarch programme.Discussion papers are
published and developed for suggesting principles to make disclosures in
financial statements more effective.
 (4) Developing and publishing the exposure draft:-IASB proceeds to the
development of an exposure draft after adding project to its agenda.The
exposure draft is issued for public consultation and the IASB may also
undertake additional outreach activities such as meetings,discussion
forums,web casts and podcasts.
 (5) Developing and publishing the standard:-IASB proceed to consider
constituent feedback from the consultaitve process and an amendment to a
standard is issued.Once deliberations have been finalised,IASB's technical
staff will prepare the final standard for balloting and voting on by the
Board.Finally standards are developed and published globally.
 (6) Post analysis of the standard:-The IASB must conduct a post-
implementation review of each standard or major amendment,usually after
they have been applied for around two years.This process can also be
initiated in other circumstances such as regulatory changes or concerns
raised by other parties.