committeesreflects the purely advisory role of these groups—they no longer will
“steer” technical projects in a direction supported by the “steering committee.”
Rather, they will serve as resources of expertise for the board.
(d) IASB Due Process. Before issuing a final Standard, the IASB must publish an
ED for public comment. Normally, it will also publish a discussion document for
public comment on major projects before it issues the ED.
The IASB has full discretion over its technical agenda. It may outsource detailed
research or other work to national standard setters or other organizations. The board
is responsible for establishing the operating procedures for reviewing comments on
EDs and other documents. The IASB will normally form specialist advisory groups
to give advice on major projects, though it is not required to do so. The IASB is re-
quired to consult the SAC on major projects, agenda decisions, and work priorities.
The IASB will normally issue bases for conclusions with both final Standards and
EDs. Although there is no requirement to hold public hearings or to conduct field
tests for every project, the board must, in each case, consider the need to do so.
Standards and EDs are approved by simple majority vote (8 of the 14 IASB mem-
bers). Dissenting opinions are included. Interpretations developed by IFRIC must
also be approved by a simple majority vote of the IASB.
(e) Qualifications of IASB Members. The key qualification for board membership is
technical expertise. The trustees also must ensure that the board is not dominated by
any particular constituency or regional interest. To achieve a balance of perspectives
and experience, at least five members must have backgrounds as practicing auditors,
at least three as financial statement preparers, at least three as users of financial state-
ments, and at least one as an academician. There is no required geographical mix.
(f ) Standards Advisory Council. The International Accounting Standards Advisory
Council has 49 members from 29 countries and five international organizations. The
SAC provides a forum for organizations and individuals with an interest in interna-
tional financial reporting to participate in the standard setting process. Members are
appointed for a renewable term of three years and have diverse geographic and func-
tional backgrounds.
The SAC normally convenes three times each year at meetings open to the public
to:
- Advise the board on priorities in the board’s work
- Inform the board of the implications of proposed standards for users and pre-
parers of financial statements - Give other advice to the board or to the trustees
(g) International Financial Reporting Interpretations Committee. The IFRIC (until
2002 known as the Standing Interpretations Committee) has 12 members appointed
by the IASC Foundation trustees for terms of three years. IFRIC members are not
salaried but their expenses are reimbursed. IFRIC meetings are open to public obser-
vation. Approval of draft or final Interpretations requires that not more than three vot-
ing members vote against the draft or final Interpretation. The IFRIC is chaired by a
nonvoting chair who can be one of the members of the IASB, the Director of Tech-
16 • 12 INTERNATIONAL FINANCIAL REPORTING STANDARDS