Masamichi Kono (Japanese FSA), who is leading the Monitoring Board’s Governance Review working group reported that the group’s report is still in preparation and that final recommendations are now likely late in the third quarter or early fourth quarter 2011. He reported that the working group was assessing the input from 80 comment letters and comments received at four roundtable meetings with constituents. He gave highlights of the areas that had attracted most comment, but was unable to give any clear indications of what recommendations the working group would make. He reiterated the desire of the Monitoring Board to coordinate its final recommendations with those of the Trustees so that a comprehensive reform package could be presented.

That said, it is likely that the Monitoring Board will be expanded to include both long term and rotating seats and that the Basel Committee may be invited to be a voting member. Whether other non-capital market authorities would be invited is in the ‘still to be debated’ category.

There was general agreement that the Monitoring Board, acting in that capacity, should not have special access to the IASB in agenda-setting matters (although there was a minority that did support some enhanced role); nor should the Monitoring Board approve appointment of the IASB Chair. There was almost no support for the establishment of a permanent secretariat.

Robert Glauber (Interim Co-Chair of the IFRS Foundation) presented an oral report of the highlights of comments received on the Trustees’ Strategy Review Report. He noted that, while the comment period does not close until 25 July 2011, comment letters received to date and the results of six roundtables have indicated broad support for the Trustees’ proposals. In particular, there was strong support for developing a mission statement; for the focus on full adoption/ incorporation of IFRSs as issued by the IASB into national financial reporting systems; and for the three-tier governance structure. There was also strong support for the enhanced and intensified role of the Trustees’ Due Process Oversight Committee. Finally, there was widespread agreement on the direction of the funding model proposed.

Michel Barnier, EU Commissioner for the Internal Market, welcomed both reports – but commented especially on the Trustees’ Strategy Review Report. He noted that the European Parliament and Member States wanted a proper upgrading of the governance structure of the IFRS Foundation and the IASB. An enhanced due process that included effects analysis/ impact assessments was necessary. He stressed that Europe remained ‘committed to IFRS’.

In response to a question from Yves-Thibault de Silguy (IFRSF), Mr Kono said that the working group was not likely to suggest that membership of the Monitoring Board should be linked directly to the adoption of IFRSs by a given date, However, it was expected that Monitoring Board members demonstrate a level of commitment to such adoption.