Chairman Hans Hoogervorst discusses IASB's future agenda and strategy
Mar 07, 2012
On 7 March 2012, IASB Chairman Hans Hoogervorst addressed the Consejo Mexicano de Normas de Información Financiera (CINIF) in Mexico City, Mexico. In his speech, he focused on the IASB's agenda consultation and the IFRS Foundation Trustees' strategy review.
Mr Hoogervorst noted that most of the convergence work with the US Financial Accounting Standards Board is complete, so the IASB has a "relatively clean slate", which has led to the request for feedback on its agenda in recent months.
One of the most common items from the feedback received was a request for a period of stability. Mr Hoogervorst noted that the IASB's future work programme will focus on fixing only what needs to be fixed, including (1) completing revisions to the conceptual framework, (2) ensuring disclosure requirements are appropriate, (3) deciding what to do with other comprehensive income and (4) considering work on less ambitious projects, such as agriculture, business combinations under common control, hyperinflation and rate-regulated industries.
In addition, Mr Hoogervorst discussed the recently completed IFRS Foundation Trustees' review of the strategy and vision of the organisation. Reflecting upon the conclusions in the Trustees' reports, Mr Hoogervorst made the following remarks:
However, I believe the most important recommendation was the need for the IASB to strengthen and formalise its relationships with standard-setters, regulators and the accounting profession.
The development of IFRSs involves close cooperation with national and regional standard-setting bodies. Once issued, the standards are endorsed for use in jurisdictions around the world. Auditors then attest compliance with the standards while securities regulators enforce their use.
Up until now we have achieved great things through informal dialogue with other participants in this supply chain. However, it is now time to move from this loose affiliation to a more integrated supply chain based on strengthened and more formalised relationships.
An integrated supply chain means that you are better able to guarantee the quality of the product.