ACCA Applied Knowledge · Financial Accounting · The regulatory framework
Which sequence of steps best reflects the IASB's due process for developing a new IFRS Accounting Standard?
The IASB sets its agenda, develops proposals, issues an exposure draft for public comment, considers the responses received and then issues the final standard. Public consultation comes before issue, and approval is by the IASB itself, not the Monitoring Board or Interpretations Committee.
- AExposure draft, agenda setting, final standard, discussion paper
- BAgenda setting, exposure draft with public comment, consideration of responses, final standardCorrect
- CFinal standard, public comment, agenda setting, exposure draft
- DInterpretations Committee approval, Monitoring Board vote, final standard
Explanation
Due process starts with setting the agenda, may include a discussion paper, then publishes an exposure draft for comment, considers the responses and finally issues the standard. Option one misorders steps, and neither the Interpretations Committee nor the Monitoring Board votes to approve standards.
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