Proposed Amendments to the IFRS Foundation Due Process Handbook

Project Content

The Trustees of the IFRS Foundation published the Exposure Draft (ED), Proposed Amendments to the IFRS Foundation Due Process Handbook, on 19 December 2024.

The IFRS Foundation’s Due Process Handbook (the Handbook) is the standard setting ‘manual’ for the work of the IASB, the ISSB and the IFRS Interpretations Committee (IFRIC), which builds on the due process requirements in the IFRS Foundation Constitution. It helps to deliver transparency and accountability as well as explaining the process for stakeholder engagement.

The amendments:

• Reflect the creation of the ISSB in the Due Process Handbook (as it was last updated in 2020, before the creation of the ISSB); and
• Make targeted enhancements and clarifications, based on the Foundation’s recent experiences.

UKEB Outreach

The list of points proposed for inclusion in the UKEB’s Comment Letter have been shared with the members of the UKEB’s Advisory and Working Group members. The points may be found here.

Key proposals

Reflecting the ISSB in the Handbook:

The ED inserts references to the ISSB, to formally confirm that the Handbook now applies to the IASB, the ISSB and the IASB’s Interpretations Committee. Additional amendments aim to build connectivity between the two boards into the due process requirements in order to create a cohesive framework and to ensure consistency and clarity for stakeholders.

The specific due process for the SASB Standards and SASB Taxonomy is inserted at Annex B.

Enhancements and clarifications

Further enhancements and clarifications are proposed throughout the Handbook, including, inter alia:

• amendments to the objective and timing of PIRs;
• amendments to the requirements for annual improvements, to specify that they may include minor or narrow-scope amendments that update a requirement or material accompanying an IFRS Standard;
• changes to some of the titles used (e.g. ‘annual improvements’ and ‘educational material’); and
• changes to the text to clarify existing processes. Other targeted amendments

There are twelve other areas where small enhancements and clarifications are made, including, inter alia:

• requiring the DPOC to review the due process a board followed before a major new IFRS Standard or Amendment is issued;
• allowing surveys to be used to collect responses to formal consultations; and,
• explaining how boards may build on the work of other standard-setters.

Next Steps

The consultation for this ED closed on 18 March 2025. The UKEB will discuss the (draft) Final Comment Letter at its Public Meeting on 28 March 2025 and the approved version is scheduled for submission later that day.

UKEB Meetings

• 27 February 2025 Project Initiation Plan