New IFRS Research Centre: Hope for More Evidence‐Informed Standards

Published date01 September 2014
DOIhttp://doi.org/10.1002/jcaf.21985
Date01 September 2014
29
© 2014 Wiley Periodicals, Inc.
Published online in Wiley Online Library (wileyonlinelibrary.com).
DOI 10.1002/jcaf.21985
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Cathy J. Cole
As the International Accounting Standards Board
(IASB) moves into the middle of its second decade,
it has launched a new IFRS Research Centre to
provide research support for its standards-setting
activities. This is a welcomed development. It is
part of a more formalized structure for providing
research support for the IASB’s standards-setting
activities—and advancing an evidence-based
approach to developing new reporting standards.
The author of this article believes that the exis-
tence of a more well-defined and organized forum
for communicating research and soliciting input,
such as the Research Centre, should benefit all
the IASB’s constituencies. And while there is no
guarantee that it will speed convergence, it is a
good step forward.
© 2014 Wiley Periodicals, Inc.
N ew IFRS Research Centre: Hope for
More Evidence-Informed Standards
As the Interna-
tional Accounting
Standards Board
(IASB) moves into the
middle of its second
decade, it has launched
a new IFRS Research
Centre as part of
a more formalized
structure for providing
research support for its
standards-setting activ-
ities (IASB, 2014g).
The goals of the
Research Centre are to
increase awareness of
the research program,
to encourage additional
research related to
international financial
reporting issues, and
to advance an evidence-based
approach to the development of
new reporting standards (IASB,
2014h). The adoption of this
more formalized structure is a
positive development and part
of the evolution of the IASB as
a standards setter.
EVOLVING STANDARDS-
SETTING PROCESS
The activities of the IFRS
Research Centre can be con-
sidered part of the ongoing
evolution of the IASB and its
standards-setting process. This
process has evolved significantly
since the IASB’s earlier days
when a potential project could
move from the preproposal stage
into the standards-setting phase
without necessarily undergoing
the same degree of preliminary
background research as now
seems necessary (IASB, 2014b).
Earlier in the IASB’s existence,
the problems were
more obvious and
the solutions more
urgent. The more
recently adopted
process involves sev-
eral phases or pro-
grams and includes
more initial research
groundwork before
a proposal is devel-
oped and an issue
moves into the stan-
dards-setting phase.
The first phase of
the process is agenda
consultation, which
includes a request
for information and
inclusion on the
IASB’s three- or five-
year plan (IASB, 2014b). This is
followed by the research phase
or program, which involves
gathering research evidence,
preparation of research or other
papers (e.g., position or discus-
sion papers), and development
of a proposal (IASB, 2014b).
As a result of evidence gath-
ered in the consultative and
research programs, the IASB
may decide to add the project
to its standard’s setting agenda
and the project would enter the

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