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

  • 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 14, 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.

  • Notes from the IFRS Foundation Trustees and Monitoring Board meetings

  • Apr 05, 2011

  • The IFRS Foundation Trustees met in London on 31 March 2011. In addition, the Monitoring Board and IFRS Foundation Trustees met on 1 April 2011. We've posted Deloitte observer notes from the meetings (click through for direct access to the notes for each topic):

  • Notes from Monitoring Board meeting

  • Apr 02, 2010

  • The IFRS Foundation Monitoring Board met with the Trustees of the IFRS Foundation at the IASB's offices in London on 1 April 2010. Presented below are the preliminary and unofficial notes taken by Deloitte observers at the meeting.Meeting of the IFRS Foundation Monitoring Board, 1 April 2010, London The Monitoring Board met the IASC Foundation Trustees in London.

  • Notes from the July 2009 IASB meeting day 1

  • Jul 22, 2009

  • The IASB is holding its July 2009 monthly Board meeting at its offices in London on Tuesday to Friday, 21-24 July 2009. The portion of the meeting on 23-24 July will be a joint meeting with the US Financial Accounting Standards Board.

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