In developing international accounting standards, the IASC, now IASB follows the following procedures:
1. The IASC board selects a topic and assigns it to a steering committee which is made of four representatives, at least one of which is a board member and at least one of which is from a developing country.
2. The steering committee studies the issues involved and presents to the board a point outline on the topic.
3. The board gives its comments to the steering committee which then prepares a preliminary draft of the proposed standard.
4. The board reviews preliminary draft of the new standard and then circulates it among all the member bodies for their comments.
5. Based on these comments, the steering committee prepares a revised draft and a final exposure draft is submitted to the board for approval.
6. If approved by a two-thirds vote of the board, the exposure draft will be sent to IASC members. The exposure draft is published in all member countries and world-wide public comments are invited from all interested parties, both professional and non-professional.
7. At the conclusion of the exposure period, usually six months, the comments submitted are considered by the steering committee, and then a final standard is drafted.
8. The steering committee submits the revised draft of the final standard to the board for its approval; and if approved by at least 8 of the 14 members of the board, it will be issued as a new IAS.
The IASB in 2001 set an initial technical agenda with ambitious targets. Several topics were planned for simultaneous exposure and debate in several countries, with feedback to the IASB to achieve convergence.
The IASB’s own standard setting process continues to require consultation of the kind used by the predecessor IASC. The Standards Advisory Council (SAC) may replace the role of the former steering committee members.
The old IASC called its standards International Accounting Standards. The new name for standards issued by the IASB is International Financial Reporting Standards (IFRSs). In one of its earliest actions, the IASB voted to make clear that the IASs issued by the former IASC continue with full force and effect unless and until the IASB amends or replaces them.
The IASB announced that the term ‘IFRS’ should be understood to include IAS. Consistent with that announcement, the term IFRS will be used to refer to the entire body of IASB standards, including the old IASs and interpretations.
However, the old IASs have not been renumbered. They remain outstanding until replaced by an IFRS. The IASB has amended some of the old IASs without replacing them, in which case they keep their old IAS number.
IASs and IFRSs:
From its inception in 1973 until it was reorganized into the International Accounting Standards Board (IASB) in early 2001, the IASC developed 41 standards, known as International Accounting Standards. Many of those were revised one or more times over the years. Several were superseded or merged in with other standards.
Since 2001, the IASB has revised a number of the IASs and has begun a second series of standards known as International Financial Reporting Standards (IFRSs), starting again with number: