PROCESS

OF
CHANGE
 INTRODUCTION
The International Accounting Standards Board (IASB) follows a structured process when changing or modifying existing
accounting policies. This process ensures that changes are well-researched, transparent, and subject to public input. Here are
the typical steps taken by the IASB.

Identification of a Need for Change:

The process usually begins with the identification of an issue or a need for change in existing accounting standards. This can
result from various factors, such as changes in business practices, emerging financial reporting challenges, or feedback from
stakeholders.

Research and Analysis:

Once a need for change is identified, the IASB conducts thorough research and analysis of the issue. This may involve
studying the impact on financial reporting, conducting empirical research, and considering the experiences of other standard-
setting bodies.
Exposure draft
The IASB issues an Exposure Draft (ED) for public consultation. The
ED contains the proposed changes to the accounting standards, along
with a detailed explanation of the rationale behind the proposed changes.
It typically allows for a comment period during which stakeholders can
provide feedback.
 Public Consultation:

During the comment period, stakeholders, including preparers, auditors, users of financial statements, and other interested
parties, are encouraged to submit their feedback on the proposed changes. The IASB actively seeks input through various
channels, such as public hearings, written submissions, and outreach activities.

Redeliberation:

After the comment period ends, the IASB reviews and redeliberates the feedback received. They consider the comments
and make any necessary adjustments to the proposed changes based on the feedback.

Approval and Finalization:

Once the redeliberation process is complete, the IASB finalizes the changes to the accounting standards. This includes
making any necessary amendments to the Exposure Draft and ensuring that the changes are clear and well-defined.
Publication
The revised accounting standards are published in their final form. The
IASB provides guidance on the effective date of the changes to give
preparers and users of financial statements time to adapt to the new
requirements.
 Implementation and Transition:

Companies and organizations are given time to implement the changes in their financial reporting processes. Transition guidance
is often provided to help entities smoothly adopt the new standards.

Monitoring and Post-Implementation Review:

The IASB continues to monitor the implementation of the new standards and gathers feedback on their practical application. Post-
implementation reviews may be conducted to assess the impact of the changes on financial reporting.
thank
you!