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

• Published date: 01 September 2014
• DOI: http://doi.org/10.1002/jcaf.21985
• Author: Cathy J. Cole
• Date: 01 September 2014

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© 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