Working Relationships with Domestic Standard Setters

This Statement records an understanding between the International Accounting Standards Board (IASB) and other accounting standard-setters.

It is particularly relevant to standard-setters in jurisdictions that have adopted or converged with International Financial Reporting Standards (IFRSs), or are in the process of adopting or converging with IFRSs.

The Statement identifies a range of activities that the IASB and other accounting standard-setters believe should be undertaken by them in the interests of facilitating the ongoing adoption of or convergence with IFRSs. Some accounting standard-setters may find it difficult to undertake certain of those activities with the resources at their disposal, but will use their best endeavours to do so.

Some of the activities are new or different from the way in which the IASB and other accounting standard-setters have operated in the past. Others are a confirmation of practices that are already being undertaken.

This Statement assumes that the ultimate aims of the IASB and other accounting standard-setters are:

(a) to develop, in the public interest, a single set of high quality, understandable and enforceable global accounting standards that require high quality, transparent and comparable information in financial statements and other financial reporting to help participants in the world’s capital markets and other users make economic decisions;

(b) to promote the use and rigorous application of those standards;

(c) in fulfilling the objectives associated with (a) and (b), to take account of, as
appropriate, the special needs of small and medium-sized entities and emerging
economies; and

(d) to bring about convergence of national accounting standards and IFRSs to high quality solutions.

This Statement is based on the premise that, in order to achieve the above aims for the benefit of constituents, it is essential that the IASB and other accounting standard-setters work together in a spirit of openness and close co-operation. The activities identified in this Statement are important in building and maintaining the relationship between the IASB and other accounting standard-setters.

Click here to download the full printable version of the Statement of Best Practice in pdf format.