IASB trustees will undertake a constitution review

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07 Nov 2003

At their meeting in Brussels on 4 November 2003, the trustees of the IASC Foundation (which oversees the IASB) announced the appointment of a committee to review the IASB's constitution.

The committee held its first meeting on 3 November 2003. Presented below is our unofficial summary of the discussion of the constitutional review at the trustees' meeting. The trustees' agenda also included a comprehensive Report on IASB Activities (PDF 99k) from IASB Chairman Sir David Tweedie and discussion of the IASB's education programme with the new Director of Education Elizabeth Hickey.

IASC Foundation Constitution Review

At its 3 November 2003 meeting, the constitution review committee felt it was important to announce the existence of the committee. The procedures and timetable were also decided. Meetings would generally be open, with proposals published prior to decisions being made. A list of topics to be examined will be issued quickly without comment on the relative importance of each, though the committee recognised that some additional questions might arise in the course of their work.

The committee felt that transparency is essential. The trustees discussed staffing for the review and concluded that at most one additional staff member could be funded. They discussed, without conclusion, whether there should be an advisory board. While such a board would provide a good sounding board, some trustees were concerned that an advisory board might assume some of the power of the review committee itself. The matter of duplication of effort of the review committee and the advisory board was also discussed.

Trustees noted that the Constitution is detailed and rule based. They discussed whether it provides for sufficient representation by analysts and preparers of accounts. They noted that it is sometimes difficult to get these parties involved in IASB activities and that this issue can not be resolved in the constitution.

Trustees noted that the constitution includes a list of organisations which the IASB should consult, but some important groups (such as the Basel Committee) are not included. However the IASB Chairman noted that while the wording needed to be altered slightly, the list was not meant to be exhaustive and did not preclude consultation with other groups.

We have created a new Page on IASPlus to track the progress of the constitution review.

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.