AASB Post-implementation Reviews

Objective of post-implementation reviews

A post-implementation review (PIR) evaluates whether an implemented pronouncement is operating as intended and is effectively and efficiently meeting the pronouncement objectives in addressing the original problem.

The following steps are generally undertaken for performing a PIR:

Step 1: review any relevant research, including that by AASB staff, academics, and other source of evidence;

Step 2: collation of any issues notified to the AASB prior to the PIR commencing;

Step 3: consultation seeking feedback from stakeholders (e.g. Invitation to Comment);

Step 4: consideration of feedback and evidence to determine next steps; and

Step 5: publication of the findings of the PIR and next steps (i.e. Feedback Statement).

A PIR is not a standard-setting project and does not automatically lead to standard-setting. It is also not intended to lead to the resolution of every concern raised.

Consideration of feedback and evidence to determine next steps

Feedback and evidence gathered are carefully considered to determine whether there are fundamental concerns about the overall effectiveness and efficiency of a pronouncement in meeting its original or intended objectives.

The following examples (including but not limited to) are the factors considered before deciding whether any action is required:

1. the problem has, or is expected to have, a material effect on those affected;
2. the prevalence of the problem and its magnitude in the Australian economy;
3. whether the problem can be resolved within the confines of the Standards in a reasonable timeframe;
4. the urgency of the problem to be resolved;
5. the interaction of the problem with other current or future projects; and/or
6. the overall costs and benefits of resolving the problem.

It is important to note that significant issues raised outside the scope of a PIR should be dealt with separately.

Determine the appropriate responses

To determine the appropriate responses, the Board may decide to take the following action(s) (including but not limited to) :

1. refer the matter to the IFRS Interpretations Committee seeking clarification about how the IASB intended an IFRS Standard to be applied;
2. issue an Interpretation that clarifies how the Board intended a domestic pronouncement to be applied;
3. amend a pronouncement, such as clarifying existing requirements by adding new requirements, implementation guidance, or illustrative examples;
4. issue educational or similar materials;
5. add the matter to the AASB research pipeline;
6. develop a dedicated project proposal contains relevant evidence of the problem, including the extent of the problem and an assessment of the potential benefits s of undertaking the project, the costs of not undertaking it, the resources available and the likely timing; and/or
7. take other action(s) to appropriately respond to the specific facts and circumstances.

A PIR will be concluded by issuing a Feedback Statement summarising the feedback received and the Board’s decisions.

Feedback Statement – Post-implementation Review

A Feedback Statement outlines feedback received from a PIR and the AASB’s responses.

Feedback Statements are prepared by AASB staff. The views and opinions provided in the Feedback Statements are not necessarily the AASB and should not be considered authoritative in any way.