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ACCA Applied Knowledge · Financial Accounting · The regulatory framework

Following a request from a government to speed up a standard, the IASB wishes to confirm that it has met its due process obligations before issuing a new IFRS. Which body oversees whether the IASB has followed due process?

The IFRS Foundation Trustees oversee due process through their Due Process Oversight Committee, which checks that the IASB has followed required steps. The Advisory Council only advises, the Monitoring Board provides public accountability without approving individual standards, and the Interpretations Committee deals with application issues.

  1. AThe IFRS Foundation Trustees, through their Due Process Oversight CommitteeCorrect
  2. BThe IFRS Advisory Council, through its public hearings
  3. CThe Monitoring Board, by approving each individual standard
  4. DThe IFRS Interpretations Committee, by reviewing each exposure draft

Explanation

The Trustees oversee the IASB and, through the Due Process Oversight Committee, review whether due process has been followed in setting standards. The Advisory Council advises the IASB on priorities and views but does not oversee process. The Monitoring Board links the Foundation with public authorities and does not approve individual standards.

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