Standard setting process and criticisms of IASB
You'll learn how the International Accounting Standards Board develops new accounting standards, from the initial advisory committee stage through to final IFRS publication.
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In this lesson
- 0:00 The standard setting process overview
- 0:26 From discussion paper to exposure draft
- 1:16 International Financial Reporting Standard issued
- 1:53 Advantages and disadvantages of harmonisation
- 3:18 Criticisms and benefits of the IASB
- 5:27 Key roles of standard-setting bodies
About this lesson
This video walks you through each step of the standard-setting process—discussion papers, exposure drafts, and interpretations committee feedback—and explains why it matters for consistency and comparability across global financial reporting. You'll also explore the real advantages and disadvantages of this approach, including concerns about flexibility, local relevance, and vested interests, so you understand both the benefits and criticisms of international harmonisation in practice. Understanding the standard-setting process is essential for Strategic Business Reporting and other IFRS-focused modules, as it helps you grasp why standards exist, how they evolve, and the limitations they face. This foundation strengthens your ability to apply standards confidently and critically evaluate their role in financial reporting.
Duration: 7m
Transcript
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