Development of a draft Interpretation
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The IFRIC reaches its conclusions on the basis of information contained in agenda papers prepared by IASB staff.
The paper describes the issue to be discussed and provides the information necessary for IFRIC members to develop an understanding of the issue and make decisions about it.
An agenda paper is developed for the IFRIC's consideration after a thorough review of the authoritative accounting literature and possible alternatives, including consultation where appropriate with national standard-setters. |
Related documents
- Download a sample draft Interpretation.
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Such a paper may include:
- a brief description of the transaction or event.
- the specific issues or questions to be considered by the IFRIC.
- the relevant concepts from the Framework.
- a description of potential appropriate alternative treatments based on those concepts, with the arguments in favour and against each alternative.
- a list of the relevant IASB pronouncements as well as those of national standard-setters, identifying any inconsistency between the alternative treatments, the relevant concepts and the standard, and
- recommendations on the appropriate accounting treatment.
Observer Notes based on the IFRIC's agenda papers are made available to the public at least a week before each IFRIC meeting.
Draft Interpretations
A draft Interpretation is developed on which the IFRIC votes. Voting takes place at a public meeting. A consensus is achieved when no more than four members have voted against the proposal.
An Interpretation includes:
- a summary of the accounting issues identified
- the consensus reached on the appropriate accounting;
- references to relevant IFRSs, parts of the Framework and other pronouncements that have been drawn upon to support the consensus; and
- the effective date and transitional provisions.
The reasons for the consensus are set out in the Basis for Conclusions.