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ACCA Applied Knowledge · Financial Accounting · The regulatory framework

In the IASB's due process for developing a new IFRS Accounting Standard, which document is issued to invite public comment on a specific proposed standard, containing the proposed requirements?

An exposure draft is the document that invites public comment on specific proposed standard wording. It is a mandatory stage of due process. A discussion paper, by contrast, is an optional earlier document that explores issues and preliminary views rather than setting out detailed proposed requirements.

  1. AExposure draftCorrect
  2. BDiscussion paper
  3. CBasis for conclusions only
  4. DFinal standard with effective date

Explanation

An exposure draft sets out the specific proposals of a standard and is issued for public comment, and it is a mandatory step in due process. A discussion paper is an optional earlier document that explores issues and preliminary views, not specific proposed wording. A final standard is issued after comments are considered.

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