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Which of the following is the correct sequence describing how a new IFRS Accounting Standard is normally developed under the IASB's due process?

The IASB publishes a discussion paper and/or exposure draft for public comment, reviews the responses, and only then issues the final standard. Consultation comes before issue and is open to all interested parties, not just large companies or national governments.

  1. ADiscussion paper and/or exposure draft with public comment, then review of responses, then issue of the final standardCorrect
  2. BFinal standard issued, then exposure draft for comment, then review
  3. CExposure draft prepared by the Interpretations Committee and issued directly by national governments
  4. DPrivate consultation with the largest listed companies only, then issue of the final standard

Explanation

The IASB uses due process: it consults publicly, typically through a discussion paper and/or exposure draft, considers the comments received, and then issues the final standard. Issuing a standard before consultation reverses the process. The process is open to all stakeholders, not only large companies, and governments do not issue standards via the Interpretations Committee.

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