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IASB to make rules-making process more transparent

The International Accounting Standards Board recently announced it would clari

The International Accounting Standards Board recently set out to clarify some of the ways in which it arrives at decisions regarding accounting rules by updating its IFRS Due Process Handbook.

The rules-making body announced its decision to demystify the steps it takes when setting standards in order to calm lingering political tensions from the global economic crisis. Lawmakers in countries around the world urged the IASB and its U.S. counterpart, the Financial Accounting Standards Board, to revamp rules governing market-to-market accounting in the wake of the financial meltdown, according to the Wall Street Journal.

Over the last few years, the agencies have been looking for an opportunity to overhaul due-process rules and add some transparency to the decision-making process. The FASB began initiating the due-process changes in 2011. The IASB proposal is currently in draft form and is available for comment until early August.

“This is a major revision to a document that describes the steps the IASB and the Interpretations Committee must follow when developing new IFRSs or interpretations," said David Sidwell, chairman of the due process oversight committee. "It represents the culmination of almost two years of work to further improve what is already a highly transparent and robust due process.”