Deloitte comment letter on the Trustees’ review of structure and effectiveness
We have responded to the IFRS Foundation Trustees' Request for Views document with proposals for further enhancing the structure and effectiveness of the organisation.
On the question of the IASB's remit, we also follow the cost argument and state that while not-for-profit organisations are within the IASB’s ‘private sector’ scope, resources at the IASB are scarce and should be concentrated on work in the for-profit sector. However, we would support the IFRS Foundation Trustees assuming oversight (not standard-setting) of activities in the public sector as many public sector entities are active in capital markets.
We disagree with the proposal to reduce the size of the IASB to 13 members as the IASB needs sufficient technical and standard-setting experience to have the ability to challenge the staff (and constituents) effectively. As it is, we already have a serious concern about the quality control over due process documents and issued IFRSs.
Finally, we think that what is missing from the consultation is a sense of context, how the IFRS Foundation Trustees see their current priorities in relation to a wider and more long-term view of financial and corporate reporting generally, and how and whether its structure and processes support that view.
Download the full comment letter below.