2015 Constitution review
Background
The IFRS Foundation Constitution requires the IFRS Foundation Trustees to undertake a review of the entire structure of the IFRS Foundation and its effectiveness every five years.
The review is required to include:
- consideration of changing the geographical distribution of Trustees in response to changing global economic conditions
- publishing the proposals of that review for public comment.
In February 2014, the Trustees announced that the 2015 review would include a focus on the optimal size of the International Accounting Standards Board (IASB). The Trustees noted the following:
The introduction of the Accounting Standards Advisory Forum (ASAF), the establishment of regional groupings of accounting standard-setters, the introduction of more sophisticated IASB outreach and stakeholder engagement programmes, as well as the end of the convergence programme, have all led to the IASB facing a different set of challenges and priorities in the coming years. Recognising this changed standard-setting landscape, the Trustees intend to seek public input on the appropriate size of the IASB, while continuing to maintain geographical balance.
The review was offcially launched on 7 July 2015. As the Trustees are convinced that the last strategy review (2010-2012) already covered many issues that would be part of a Constitution review, they have have limited this review to three strategic areas: Relevance of IFRS, Consistent application of IFRS, and Governance and financing of the IFRS Foundation. The Trustees decided not to cover the primary objective of the Foundation and the processes and procedures in support of that objective, including the IASB's due process; what the Foundation and the IASB are doing in support of its commitment to the long-term goal of the adoption of IFRS; and the operations and performance of the Advisory Council.
