IASCF Proposals for constitution changes

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09 Sep 2009

The Trustees of the International Accounting Standards Committee Foundation (IASCF), the oversight body of the IASB, have published for public comment proposals that form the second part of a two-part review of the IASC Foundation constitution.

The objectives of the proposals are to enhance the governance of the organisation, improve the involvement of stakeholders with a broad range of perspectives in both developed and emerging markets, and make operational improvements.

The key proposals for changes to the IASCF constitution
  • Change of name of the IASC Foundation to the IFRS Foundation and the IASB to the IFRS Board
  • Replace all references to 'accounting standards' with 'financial reporting standards' throughout the constitution
  • Clarify the objectives of the organisation, in particular:
    • Clarify the need to take account of emerging economies and, as appropriate, the special needs of small and medium-sized entities, and
    • Not to broaden the scope to cover standards for public and not-for-profit entities
  • Clearly acknowledge the role the Monitoring Board now plays in the governance structure of the organisation
  • Formally recognise Africa and South America in the composition of the Trustees by requiring one Trustee from each of those two regions
  • Establish a procedure for an accelerated due process in exceptional circumstances
  • Provide for appointing up to two vice-chairmen for both the Trustees and the IFRS Board
  • Amend the length of a possible second term of the IFRS Board members to ensure appropriate turnover, as follows:
    • Board members would be appointed initially for a term of five years, with the option for renewal for a further three-year term. This will not apply to the Chairman and Vice-Chairman, who may be appointed for a second five-year term.
    • The Chairman or Vice-Chairman may not serve for longer than ten consecutive years.
  • Expressly provide that the IASB must consult the Trustees and the SAC when developing its technical agenda
Comments are requested by 30 November 2009. Click for:

 

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