How does the ASB obtain views before issuing an accounting standard?
In accordance with the ASB’s ‘due process’ new standards normally go through a lengthy, formal two-stage process of public consultation before they are issued. The first stage is the publication of a Discussion Paper, which describes and analyses the problem in question and sets out possible ways of dealing with it. At that stage the ASB may not necessarily have decided on a preferred option. The Paper will typically set out a list of questions that respondents are invited to address, and a comment period of, usually, three months is given. The ASB analyses and considers the responses it receives. It will give far greater weight to the quality of the arguments advanced than to the volume of responses. It will then develop firm proposals, which are eventually published as a draft standard in “exposure draft” form as a Financial Reporting Exposure Draft (or FRED). Again, at this second stage of public consultation, respondents are usually invited to comment within a three-month period, b
