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IASCF forms Monitoring Board, enlarges IASB

  • IASC Foundation (blue) Image

30 Jan 2009

The IASC Foundation Trustees have announced important amendments to the IASCF Constitution effective 1 February 2009, including formation of a Monitoring Board and expansion of the IASB from 14 to 16 members.

The Trustees approved the changes at their meeting in New Delhi, India, on 15 and 16 January 2009. Among the changes:

CHANGES TO IASC FOUNDATION CONSTITUTION

Monitoring Board

  • A Monitoring Board (MB) of public authorities has been formed. The goal is to enhance public accountability of the IASC Foundation while not impairing the independence of the standard-setting process. (During the Trustees' deliberations and due process leading to these Constitution changes, this body has been referred to as the 'Monitoring Group' rather than 'Monitoring Board'.)
  • The MB will initially comprise the relevant leaders of the European Commission, the Japanese Financial Services Agency, the US Securities and Exchange Commission, the Emerging Markets Committee of IOSCO, and the Technical Committee of IOSCO. The chairman of the Basel Committee on Banking Supervision will be a non-voting observer.
  • The MB will participate in the Trustee nomination process and approve appointments to the Trustees.
  • The MB will have oversight responsibilities in relation to the Trustees and their oversight of the IASB's activities, in particular the agenda-setting process and the 'IASB's efforts to improve the accuracy and effectiveness of financial reporting and to protect investors'.
  • The MB 'may refer accounting issues to, and will confer regarding these issues with, the Trustees and the IASB Chair'. The MB may request a meeting with 'the Chairpersons of the Trustees and the IASB'.
  • 'If the IASB determines that consideration of the issue(s) identified by the IASCF Monitoring Board is not advisable or that the issue(s) cannot be resolved within the time frame suggested by the Monitoring Board, the Trustees should:
    • Call on the IASB to undertake all reasonable efforts to consider issue(s) in a manner that is consistent with the public interest, taking into account the protection of investors.
    • Call on the IASB to explain its position through the Trustees regarding the IASB's position on the issue(s); and
    • Promptly notify the IASCF Monitoring Board of the IASB's position.
  • The IASCF has released the Memorandum of Understanding related to the Monitoring Board. This is in process of being signed by all parties.
International Accounting Standards Board
  • The IASB will increase from 14 to 16 members (with up to 3 part-time members) by 2012. To ensure a broad international diversity, by July 2012 there will normally be:
    • four members from the Asia/Oceania region;
    • four members from Europe;
    • four members from North America;
    • one member from Africa;
    • one member from South America; and
    • two members appointed from any area, subject to maintaining overall geographical balance.

 

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