Comments invited on proposed constitution revisions

  • Constitution review (old) Image

23 Nov 2004

The Trustees of the International Accounting Standards Committee Foundation (IASCF) have published and invited comment on a consultation document containing their proposals to amend the IASCF Constitution.

The Constitution sets out the organisational framework of the IASCF and the International Accounting Standards Board. Comments are requested by 23 February 2005. Click to download the IASCF Press Release (PDF 28k). The consultation document can be viewed on the Foundation's website, and printed copies are available on request without charge. Among the principal recommendations are these:

Proposals for the IASCF Constitution


  • Retain the current two part-time members of the IASB.
  • Broaden the criteria for selecting IASB members – 'professional competence and practical experience' would replace 'technical expertise'.
  • Ease the required mix of backgrounds on the IASB. Currently a minimum of five practising auditors, three preparers, three users, and one academician are required. That would be changed to "an appropriate mix of practical experience among auditors, preparers, users, and academics", including at least one IASB member who has recent experience in each of those fields.
  • Require nine votes (64%) by IASB members to approve an Exposure Draft, Standard, or Interpretation, rather than the current eight (57%).
  • Enhance the IASB's due process by expanding its consultative arrangements and scope of liaison activities.
  • Remove the restrictive wording in the constitution regarding the number of full-time Board members that will have liaison responsibilities without narrowly specifying with whom they will liaison.
  • Require that the Board explain its reasons when the optional steps in its due process, such as field tests and public hearings, are not followed.


  • Expand the number of Trustees from 19 to 22 to broaden geographical representation and diversity of professional experience. Composition would be as follows:
    • 6 Trustees appointed from North America;
    • 6 Trustees appointed from Europe;
    • 6 Trustees appointed from the Asia/Oceania region; and
    • 4 Trustees appointed from any area, subject to establishing overall geographical balance.
  • Allow the Chair of the IASC Foundation Trustees to serve as Chair for six years, even if that period is beyond the limit of two three-year terms for Trustees.
  • The Trustees' annual review of the strategy and effectiveness of the Foundation and the IASB and its effectiveness should include consideration of the IASB's agenda. Trustees would be free to comment on and make suggestions regarding the Board's agenda but the IASB would have autonomy to determine its own technical agenda.
  • Rather than necessarily developing educational programmes itself, the Foundation should foster and review the development of educational programmes and materials by others.

Standards Advisory Council:

  • The Chair of the Standards Advisory Council would be appointed by the Trustees (three-year term, one renewal permitted) and would not be a member of the IASB or its staff (currently the IASB Chair also chairs the SAC).

Correction list for hyphenation

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