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Monitoring Board

Formation of the Monitoring Board

At a meeting on 15 and 16 January 2009 in New Delhi, India, the (then) IASC Foundation Trustees approved amendments to the (then) IASCF Constitution effective 1 February 2009. These amendments included the formation of a Monitoring Board comprising public authorities in order to replicate the relationship that has generally existed in national identities between accounting standard-setters and capital market authorities.

Goal

The primary purpose of the Monitoring Board is to serve as a mechanism for formal interaction between capital markets authorities and the IFRS Foundation, thereby facilitating the ability of capital market authorities that allow or require the use of International Financial Reporting Standards (IFRSs) in their jurisdictions to effectively discharge their mandates relating to investor protection, market integrity and capital formation.

The goal is to enhance public accountability of the IFRS Foundation while not impairing the independence of the standard-setting process.

Responsibilities

The responsibilities of the Monitoring Board are:

  • to participate in the process for appointing IFRS Foundation Trustees and to approve the appointment of Trustees according to the guidelines set out in the IFRS Foundation Constitution.
  • to review and provide advice to the Trustees on their fulfilment of the responsibilities set out in IFRS Foundation Constitution. The Trustees will make an annual written report to the Monitoring Board.

Initial members

The Monitoring Board initially comprises the relevant leaders of:

The chairman of the Basel Committee on Banking Supervision is a non-voting observer.

IFRS Foundation Trustee nominations and appointments

The Monitoring Board participates in the nomination process for the IFRS Foundation Trustees, including approval of the Trustees' procedures for soliciting nominations and submitting names of candidates to the Trustees.

The Monitoring Board approves each appointment to the IFRS Foundation Trustees.

The Monitoring Board must approve the selection of the Chairman of the IFRS Foundation Trustees. The Trustees themselves nominate a candidate.

Oversight of the IFRS Foundation and the IASB

The Monitoring Board has oversight responsibilities in relation to the Trustees and their oversight of the IASB's activities of the International Accounting Standards Board (IASB), in particular the agenda-setting process and the 'IASB's efforts to improve the accuracy and effectiveness of financial reporting and to protect investors'.

The Monitoring Board 'may refer accounting issues to, and will confer regarding these issues with, the Trustees and the IASB Chair'. The Monitoring Board may request a meeting with 'the Chairpersons of the Trustees and the IASB'.

'If the IASB determines that consideration of the issue(s) identified by the IFRS Monitoring Board is not advisable or that the issue(s) cannot be resolved within the time frame suggested by the Monitoring Board, the Trustees should:

  • Call on the IASB to undertake all reasonable efforts to consider issue(s) in a manner that is consistent with the public interest, taking into account the protection of investors
  • Call on the IASB to explain its position through the Trustees regarding the IASB's position on the issue(s)
  • Promptly notify the IFRS Monitoring Board of the IASB's position.

The Monitoring Board's oversight responsibilities do not alter the terms of the relationship between the Trustees and the IASB. Nor do those responsibilities alter the Trustees' responsibilities as described in the IFRS Foundation Constitution.

Other responsibilities

The Monitoring Board reviews the adequacy and appropriateness of Trustee arrangements for financing the IASB.

The Monitoring Board confers with the Trustees regarding their responsibilities, in particular in relation to the regulatory, legal, and policy developments that are pertinent to the IFRS Foundation's oversight of the IASB.

Memorandum of Understanding

The IFRS Foundation also released a Memorandum of Understanding (MoU) related to the Monitoring Board.

Related news

  • IPSASB responds to Review Group consultation paper

  • Apr 23, 2014

  • The International Public Sector Accounting Standards Board (IPSASB) has responded to the IPSASB Governance Review Group consultation paper on its future governance. The IPSASB is unanimous in its support of the option of establishing separate oversight for its operations under the auspices of the International Federation of Accountants (IFAC), and further does not consider extending the scope of the IFRS Foundation Monitoring Board and Trustees activities to public sector accounting standard setting as feasible in the short or medium term.

  • AASB calls for focus on sector neutral accounting in public sector governance review

  • Mar 31, 2014

  • The Australian Accounting Standards Board (AASB) has responded to the International Public Sector Accounting Standards Board (IPSASB) Governance Review Group consultation paper on the future governance of the IPSASB. The AASB strongly supports sector neutral accounting standards and believes the option of extending the scope of the IFRS Foundation's Monitoring Board and IFRS Foundation Trustees to encompass the IPSASB is the best approach to limiting differences in accounting standards between sectors.

  • IFRS Foundation Monitoring Board announces new members

  • Jan 28, 2014

  • Following its 2012 ‘Final Report on the Review of the IFRS Foundation’s Governance’, the Monitoring Board decided to expand its membership by up to four permanent members, primarily from major emerging markets, and two rotating members. The first two new permanent members were announced today.

  • Meeting notes from joint IFRS Foundation Trustees and Monitoring Board meeting

  • Jan 27, 2014

  • The IFRS Foundation Trustees held a joint meeting with the Monitoring Board on 27 January 2014 in Milan. The meeting received updates on the activities of the Monitoring Board, IFRS Foundation, International Accounting Standards Board and Due Process Oversight Committee, and received an update on the use of IFRS around the world. We have posted Deloitte observer notes from the meeting.

  • Consultation paper on IPSASB governance

  • Jan 24, 2014

  • The Review Group for the governance and oversight arrangements of the International Public Sector Accounting Standards Board (IPSASB) has issued a public consultation paper on the future governance and oversight of the IPSASB and IPSASs as earlier consultations found that concerns about the governance and oversight of the IPSASB are some of the reasons cited by national authorities for not adopting IPSASs. One of the possibilities mentioned is giving monitoring and oversight of the IPSASB to the IFRS Foundation's Monitoring Board and Trustees.

  • IFRS Foundation Monitoring Board call for nominations

  • May 20, 2013

  • The Monitoring Board (MB) of the IFRS Foundation is seeking nominations for its expanded membership (up to four) to include authorities primarily from emerging markets. Candidates are expected to be a capital markets authority responsible for setting the form and content of financial reporting in its jurisdiction.

  • April 2013 IFRS Foundation Trustees and Monitoring Board meetings notes

  • Apr 11, 2013

  • Deloitte observer notes are now available for the IFRS Foundation Trustees and the Monitoring Board meetings held in London on 11 April 2013. The Monitoring Board meeting, held jointly with the Trustees, featured a review of the Monitoring Board, updates on recent developments within the IASB, ASAF, financials and funding, DPOC activities, profile projects and transparency. Afterwards, the IFRS Foundation Trustees held its meeting which consisted of reports from IFRS Foundation, IASB, and the DPOC.

  • Agendas for upcoming IFRS Foundation meetings

  • Apr 02, 2013

  • Agendas have been released for the upcoming meeting of the IFRS Foundation Trustees and the meeting of the Monitoring Board with the IFRS Foundation Trustees, both of which are scheduled to be held in London on Thursday 11 April 2013.

  • Trustees publish revised IFRS Due Process Handbook

  • Feb 18, 2013

  • The Trustees of the IFRS Foundation have published a revised version of their IFRS Foundation Due Process Handbook. The Handbook describes the steps followed by the IASB and the Interpretations Committee in developing or revising International Financial Reporting Standards (IFRSs) and Interpretations.

  • The Bruce Column — Independence, eligibility, and the IASB

  • Feb 21, 2012

  • Independence and accountability have always been the big issues for the IASB and the IFRS Foundation. Now the Foundation’s Monitoring Board has produced a report which deals with the most sensitive issues. Robert Bruce, our regular resident columnist takes a look.

  • Notes from Monitoring Board meeting

  • Jul 13, 2011

  • The IFRS Foundation Monitoring Board met in public session in New York on 13 July 2011. Topics discussed were the Monitoring Board governance review, the IFRS Foundation Due Process Oversight Committee and budget and financing.