European Commission report on IASB/IASCF governance

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28 Apr 2007

The European Commission has posted on its website a report on Governance Developments in the IASB and IASCF.

The report was submitted to the EU's Economic and Financial Affairs Council (ECOFIN). The report acknowledges that "significant improvements have been made in the IASC/IASB governance structures", but also highlights the following "main areas where further improvement is desirable":
  • Firstly, concerning the governance structure of the IASCF/IASB, the Commission believes that further amendments would improve the accountability of the Board and of the Trustees to their constituents, in particular those jurisdictions which apply IFRS.
  • Secondly, as regards the IASB's due process with stakeholders, strengthened consultation procedures are necessary, in particular for IFRIC. In particular, the IASB should explain, preferably in writing, the reasons for not taking into account comments made by stakeholders. In addition, the credibility of standards would be further enhanced by impact assessment and field testing procedures.... [Also] the IASB could usefully intensify its informal liaison relationships with national standards setters and preparers....
  • Thirdly, on the issue of adequate representation of stakeholders in governing bodies of the IASCF/IASB, the composition of these bodies should ensure adequate representation and experience from countries and regions committed to use of IFRS.
Click for Full Report (PDF 49k).

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