The international standard-setting process: In the United States, because the SEC is the securities regulator that has the authority to determine the accounting standards that must be used by public companies, it has a direct oversight role with respect to the FASB. Internationally, there are many different securities regulatory bodies across the many nations that had adopted IFRS as the set of accounting standards to be used by public companies. No one regulatory body maintains oversight, rather a Monitoring Board serves as a mechanism for formal interaction between securities regulators and the IFRS Foundation, which governs the IASB.

Q). According to the SEC document Staff Paper: Exploring a Possible Method of Incorporating IFRS that you read in Part 2 above, in what ways do the SEC and its staff currently participate in the international standard-setting process?