The AcSB’s Due Process Manual provides guidance on the factors the Board considers when determining the merit of potential standard-setting projects and prioritization of topics.
These factors include:
- Impact to financial statement users: The relevance and importance of the topic to the primary users of financial statements;
- Benefit vs. cost: The expected benefits to financial reporting through addressing the issue compared with the cost incurred by all relevant parties to develop, implement, and apply any new or modified requirements;
- Scale of the issue: The types of entities likely to be affected, and how pervasive or acute an issue is likely to be;
- Feasibility of a solution: The possibility of developing a feasible standard-setting solution to address the issue; and
- Alignment to the financial statement concepts: The quality of the standard/amendments to be developed relative to the underlying financial statement concepts.