Accounting standards were set by a part-time, volunteer IASC Board that had 13 country members and up to 3 additional organisational members. Each member was generally represented by two "representatives" and one "technical advisor". The individuals came from a wide range of backgrounds – accounting practice, business (particularly multinational businesses), financial analysis, accounting education, and national accounting standard-setting. The Board also had a number of observer members (including representatives of IOSCO, FASB, and the European Commission) who participated in the debate but did not vote.

Major components of the old IASC structure were:

• IASC Board – described above.

• Consultative Group – an advisory body representing a wide range of international organisations with an interest in accounting.

• Standing Interpretations Committee (SIC) – developed and invited public comment on interpretations of IASC Standards, subject to final approval by the IASC Board.

• Advisory Council – oversight body (despite its name, the Advisory Council functioned more like the Board of Trustees of the new IASC Foundation, described below).

• Steering Committees – expert task forces for individual agenda projects.

The International Accounting Standards Committee was essentially the structure, rather than a committee in the traditional sense of a group of people.

Click for More Information:

• Historical Chronology of the IASC and IASB.

• More Historical Facts about the IASC

The Strategy Working Party published its Report, in the form of a Discussion Paper, in December 1998. After soliciting comments, the Working Party published its Final Recommendations in November 1999.

The IASC Board approved the proposals unanimously in December 1999, and the IASC member bodies did the same in May 2000. A new IASB Constitution took effect 1 July 2000. The standards-setting body was renamed the International Accounting Standards Board (IASB). It would operate under a new International Accounting Standards Committee Foundation (IASCF).

On 1 April 2001, the new IASB took over from the IASC the responsibility for setting International Accounting Standards.

• Click here for a Detailed Chronology of the IASC Restructuring

• International Accounting Standards Board (IASB) – has sole responsibility for establishing International Financial Reporting Standards (IFRSs).

• IFRS Foundation – oversees the work of the IASB, the structure, and strategy, and has fundraising responsibility. [Until 31 March 2010 was named International Accounting Standards Committee Foundation, or IASCF.]

• Monitoring Board – oversees the IFRS Foundation Trustees, participates in the Trustee nomination process, and approves appointments to the Trustees.

• IFRS Interpretations Committee – develops interpretations for approval by the IASB. [Until 31 March 2010 was named International Financial Reporting Interpretations Committee.]

• IFRS Advisory Council – advises the IASB and the IASCF. [Until 31 March 2010 was named Standards Advisory Council.]

• Working Groups – expert task forces for individual agenda projects.

Reason for forming the Monitoring Board. To enhance public accountability of the IASC Foundation while not impairing the independence of the standard-setting process.

Membership: The Monitoring Board comprises the relevant leaders of the European Commission, the Japanese Financial Services Agency, the US Securities and Exchange Commission, the Emerging Markets Committee of IOSCO, and the Technical Committee of IOSCO. The chairman of the Basel Committee on Banking Supervision is a non-voting observer.

Responsibilities regarding Trustee appointments. The Monitoring Board participates in the Trustee nomination process and approves appointments to the Trustees.

Responsibilities regarding oversight. The Monitoring Board has oversight responsibilities in relation to the Trustees and their oversight of the IASB's activities, 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 IASCF 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); and
  • Promptly notify the Monitoring Board of the IASB's position.

More information about the Monitoring Board. Click here for a More Information about the Monitoring Board

Number of trustees. 22 Trustees. (Initially, the Foundation Board of Trustees had 19 Trustees.)

Geographical balance of trustees.

• Six from North America.
• Six from Europe.
• Six from the Asia/Oceania region
• Four from any area, subject to establishing overall geographical balance.

Backgrounds of trustees. The constitution requires an appropriate balance of professional backgrounds, including auditors, preparers, users, academics, and other officials serving the public interest. Two will normally be senior partners of prominent international accounting firms.

Selection of trustees. Trustees are appointed by the Board of Trustees itself (self-perpetuating board). Trustees adopt their own procedures for appointing trustees. Those procedures must include consultation with national and international organisations of auditors (including IFAC), preparers, users, and academics and public solicitation of nominees including self-nominations. To achieve this objective, the trustees have established a Trustee Appointments Advisory Group. The trustees will consult that body before making decisions on trustee appointments.

Responsibilities of the Trustees.

Under the IFRS Foundation Constitution, the Trustees of the IFRS Foundation have responsibility to:

• establish and maintain appropriate financing arrangements
• establish or amend operating procedures for the Trustees
• determine the legal entity under which the IFRS Foundation shall operate, provided always that such legal entity shall be a Foundation or other body corporate conferring limited liability on its members and that the legal documents establishing such legal entity shall incorporate provisions to achieve the same requirements as the provisions contained in this Constitution
• review in due course the location of the IASC Foundation, both as regards its legal base and its operating location
• investigate the possibility of seeking charitable or similar status for the IFRS Foundation in those countries where such status would assist fundraising
• open their meetings to the public but may, at their discretion, hold certain discussions (normally only about selection, appointment and other personnel issues, and funding) in private; and
• publish an annual report on the IFRS Foundation's activities, including audited financial statements and priorities for the coming year.

The Trustees also have responsibility to:

• appoint the members of the IASB and establish their contracts of service and performance criteria;
• appoint the members of the International Financial Reporting Interpretations Committee and the IFRS Advisory Council;
• review annually the strategy of the IASC Foundation and the IASB and its effectiveness, including consideration, but not determination, of the IASB's agenda;
• approve annually the budget of the IFRS Foundation and determine the basis for funding;
• review broad strategic issues affecting accounting standards, promote the IASC Foundation and its work and promote the objective of rigorous application of International Accounting Standards and International Financial Reporting Standards, provided that the Trustees shall be excluded from involvement in technical matters relating to accounting standards;
• establish and amend operating procedures, consultative arrangements and due process for the IASB, the International Financial Reporting Interpretations Committee and the Standards Advisory Council;
• review compliance with the operating procedures, consultative arrangements and due process as described in (f);
• approve amendments to this Constitution after following a due process, including consultation with the IFRS Advisory Council and publication of an Exposure Draft for public comment and subject to the voting requirements given in Section 14;
• exercise all powers of the IFRS Foundation except for those expressly reserved to the IASB, the IFRS Interpretations Committee and the IFRS Advisory Council; and
• foster and review the development of educational programmes and materials that are consistent with the IFRS Foundation's objectives.

Trustee voting. The Trustees act by simple majority vote except for amendments to the Constitution, which require a three-fourths majority.

List of current IFRS Foundation Trustees. Click here for a List of the IFRS Foundation Trustees

Initial Trustees. The initial Trustees were chosen in 2000 by a Nominating Committee. Click here for a List of Members of the Nominating Committee.

• Develop and issue International Financial Reporting Standards and Exposure Drafts, and
  
• Approve Interpretations developed by the International Financial Reporting Interpretations Committee (IFRIC).

Number of Board members (effective 1 February 2009). 16 members, of whom at least 13 serve full-time and not more than 3 part-time.

Main qualifications for IASB members. "Professional competence and practical experience". More specific criteria as detailed in the annex to IASC Foundation Constitution:

• Demonstrated technical competency and knowledge of financial accounting and reporting.
• Ability to analyse.
• Communication skills.
• Judicious decision-making.
• Awareness of the financial reporting environment.
• Ability to work in a collegial atmosphere.
• Integrity, objectivity, and discipline.
• Commitment to the IFRS Foundation's mission and public interest.

Geographical mix of IASB members (effective 1 February 2009). To ensure a broad international diversity, by July 2012 there will normally be:

• Four members from the Asia/Oceania region
• Four members from Europe
• Four members from North America
• One member from Africa
• One member from South America
• Two members appointed from any area, subject to maintaining overall geographical balance

Background mix of IASB members. "Appropriate mix of recent practical experience among auditors, preparers, users and academics".

Due process steps. Formal due process for projects normally, but not necessarily, involves the following steps. The steps that are required by the IASC Foundation Constitution are indicated by an asterisk*:

1. ask the staff to identify and review the issues associated with the topic and to consider the application of the Framework to the issues;
2. study national accounting requirements and practice and exchange views about the issues with national standard-setters;
3. consult the Standards Advisory Council about the advisability of adding the topic to the IASB's agenda;*
4. form an advisory group (generally called a 'working group') to advise the IASB and its staff on the project;
5. publish for public comment a discussion document;
6. publish for public comment an exposure draft approved by vote of at least nine IASB members, including any dissenting opinions held by IASB members (in exposure drafts, dissenting opinions are referred to as 'alternative views');*
7. publish within an exposure draft a basis for conclusions;
8. consider all comments received within the comment period on discussion documents and exposure drafts;*
9. consider the desirability of holding a public hearing and the desirability of conducting field tests and, if considered desirable, holding such hearings and conducting such tests;
10. approve a standard by at least votes of at least nine IASB members and include in the published standard any dissenting opinions;* and
11. publish within a standard a basis for conclusions, explaining, among other things, the steps in the IASB's due process and how the IASB dealt with public comments on the exposure draft.

The IASB is required to explain its reasons if it decides not to follow any of the non-mandatory due process steps. Such non-mandatory steps are:

• Publishing a discussion document before an exposure draft.
• Forming working groups.
• Publishing a basis for conclusions.
• Holding public hearings.
• Conducting field tests.

IASB agenda. The IASB has full discretion over developing and pursuing its technical agenda. The trustees' annual review of the strategy of the IFRS Foundation and the IASB and its effectiveness includes "consideration, but not determination, of the IASB's agenda".

IASB voting (effective 1 February 2009). The publication of a Standard, Exposure Draft, or final IFRIC Interpretation requires approval by 10 of the Board's 16 members (9 if fewer than 16 members are sitting). (From the IASB's inception in 2001 to 30 June 2005, the required vote was 8 out of 14. From June 2005 to January 2009, the required vote was 9 out of 14.) All other decisions of the IASB require a simple majority vote. Click here for a History of Voting Requirements of IASC and IASB for Final Standards.

IASB working groups. The Board will normally form Working Groups or other types of specialist advisory groups to give advice on major projects. The IASCF Trustees' Procedures Committee reviews the proposed composition of each group to ensure that there is a satisfactory balance of perspectives. Click for More Information about Working Groups.

Other advisory groups. The Board has formed a number of other specialised advisory groups, including:

• Capital Markets Advisory Committee (formerly Analyst Representative Group)
• Global Preparers Forum (GPF)
• Financial Crisis Advisory Group (jointly with FASB)
• Emerging Economies Group (EEG)

IASB Chairman. Appointed by the Trustees. In June 2000, the IFRS Foundation Trustees announced the appointment of Sir David Tweedie as the first Chairman of the restructured IASB. Sir David continues today as IASB Chairman.

Board meetings. The new IASB held its first official meeting in London in April 2001. The Board meets monthly (except August) for approximately one week. Board meetings are normally held at the IASB's office in London. Until 2009, the IASB and the US Financial Accounting Standards Board (FASB) held joint meetings (usually April and October). Starting in 2009 the Boards have been meeting more frequently, and since 2010 they have been meeting monthly.

More information about the Board. Click for:

• List and Brief Biographies of the Current IASB Members (including term expirations)

• Biographies and Periods of Service of All IASB Members Current and Past

• Photos of the IASB Members

• Latest IASB Meeting Information

• More Information About IASB, including IASB's objectives, compliance issues, contact details, and a photo of IASB's office in Cannon Street.

• Information about IASB 2004 Internal Structure Review

• advising the IASB on agenda decisions and priorities in the IASB's work,
• informing the IASB of the views of the organisations and individuals on the Council on major standard-setting projects, and
• giving other advice to the IASB or the Trustees.

Advisory Council members. Under the IFRS Foundation Constitution, the Advisory Council has 30 or more members. The number is currently around 40. Members are appointed by the Trustees for a renewable term of three years. They have diverse geographic and functional backgrounds.

• Click here for a List of the IFRS Advisory Council Members

Advisory Council chairman. SAC has an independent chairman appointed by the Trustees.

Advisory Council meetings. The IFRS Advisory Council normally meets three times each year at meetings open to the public.

Interpretations Committee's Responsibilities:

• Interpret the application of International Financial Reporting Standards (IFRSs) and provide timely guidance on financial reporting issues not specifically addressed in IFRSs or IASs, in the context of the IASB's framework, and undertake other tasks at the request of the Board.
• Publish Draft Interpretations for public comment and consider comments made within a reasonable period before finalising an Interpretation.
• Report to the Board and obtain Board approval for final Interpretations.

Interpretations Committee Members. Click here for a List of the Interpretations Committee Members

*In November 2007, the IASC Foundation Trustees voted to enlarge the Interpretations Committee to 14 members from its original 12 members.

• Click to Download the IFRS Foundation Constitution Revised through 1 February 2009 (PDF 97k).

Brief History

• On 24 May 2000, the first IASC Foundation Constitution was approved by the Members of IASC. (Members of the IASC were the professional accounting organisations that were also IFAC members).

• On 5 March 2002, certain paragraphs were revised by the Trustees of the IASC Foundation, effective on that date. Those revisions were necessary to implement certain aspects of the IASB's Preface to IFRS.

• In November 2003, the trustees of the IASC Foundation announced the appointment of a committee to Review the IASB's Constitution.

• On 21 June 2005, the Trustees of the IASC Foundation gave final approval to a broad range of changes to the Constitution, effective 1 July 2005. Information about the changes may be found Here.

• On 31 October 2007, the Trustees of the IASC Foundation revised the Constitution to reflect the expansion of IFRIC to 14 members, effective immediately.

• At their 31 October 2007 meeting, the Trustees Announced (PDF 55k) that a comprehensive Constitution Review would be undertaken in 2008. Click here for More Information about the 2008 Constitution Review.

• In January 2009, the Trustees voted to revise the constitution for changes resulting from the first phase of the review, including formation of the Monitoring Board.

• In January 2010, the Trustees voted to revise the constitution for changes resulting from the second phase of the review, including name changes as follows:
  • From IASC Foundation to IFRS Foundation
  • From International Financial Reporting Interpretations Committee to IFRS Interpretations Committee
  • From Standards Advisory Council to IFRS Advisory Council

• European Commission
• European Financial Reporting Advisory Group (EFRAG)
• International Organization of Securities Commissions (IOSCO)
• International Federation of Accountants (IFAC)
• US Financial Accounting Standards Board (FASB)
• United States Public Company Accounting Oversight Board (PCAOB)
• United States Securities and Exchange Commission (SEC)

Because they are important to the success of the IASB, we have provided separate pages of information about the involvement of these key groups with IASB.

At its December 2000 meeting, the IASC Board approved a statement to be transmitted to the new International Accounting Standards Board. The Statement comments on current work in progress and expresses some of Board's current thinking based on its work on these items and other discussions. The Board expressed a hope that its successor would continue work on the projects on:

• business combinations,
• present value,
• reporting financial performance,
• insurance,
• extractive industries, and
• financial instruments.

In addition, the Statement suggests the following new projects:

• a project on convergence of national and international standards,
• a new 'improvements project' to deal with relatively minor matters in the existing IASC Standards,
• share-based payment,
• intangible assets,
• narrative reporting outside the notes,
• update the Framework and Preface to IAS,
• special version of IAS for small enterprises, and
• review of IAS provisions relating to inflation accounting.

• Click for full text of the IASC Board Statement