Trustees conclude 2015 Constitution review

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10 Jun, 2016

The Trustees of the IFRS Foundation have concluded the 2015 review of structure and effectiveness of the IFRS Foundation that was officially launched on 7 July 2015 by publishing a request for views. As the Trustees were convinced that the last strategy review (2010-2012) already covered many issues that would be part of a constitution review, they limited the review to three strategic areas: Relevance of IFRS, Consistent application of IFRS, and Governance and financing of the IFRS Foundation.

On Relevance, the Trustees intend to accelerate work to address barriers to high-quality digital reporting by collaborating with investors, securities regulators and others to ensure the IFRS Taxonomy remains fit for purpose. They will also establish a network of experts to provide advice on technological innovation and its impact and relevance to IFRS Standards. The Trustees have also decided to retain the existing focus of the Board on for-profit entities, with no expansion at this time to cover either the public sector or the private not-for-profit sector.

Regarding Consistent application, there will be an increased emphasis on activities to support the consistent application, additional resources and materials will be developed to assist the consistent implementation, and the Trustees will continue to develop relationships with securities regulators to support implementation of IFRSs around the world.

Governance and financing will see no change to the current three-tier structure, but steps will be taken to enhance visibility of Trustee oversight of the Board. The geographical distribution of both the Trustees and the Board will be changed by combining the North American and South American allocations into a single ‘Americas’ category, and the size of the Board will be reduced to 13 members, with the flexibility to appoint a 14th member if appropriate. The Trustees will maintain the current funding model until the funding regime based on publicly supported financing is fully achieved.

The following additional information is available on the IASB website:

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