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2015 Constitution review

Background

The IFRS Foundation Constitution requires the IFRS Foundation Trustees to undertake a review of the entire structure of the IFRS Foundation and its effectiveness every five years.

The review is required to include:

  • consideration of changing the geographical distribution of Trustees in response to changing global economic conditions
  • publishing the proposals of that review for public comment.

In February 2014, the Trustees announced that the 2015 review would include a focus on the optimal size of the International Accounting Standards Board (IASB).

The review was offcially launched on 7 July 2015. As the Trustees were convinced that the last strategy review (2010-2012) already covered many issues that would be part of a Constitution review, they had limited this review to three strategic areas: Relevance of IFRS, Consistent application of IFRS, and Governance and financing of the IFRS Foundation. The Trustees decided not to cover the primary objective of the Foundation and the processes and procedures in support of that objective, including the IASB's due process; what the Foundation and the IASB are doing in support of its commitment to the long-term goal of the adoption of IFRS; and the operations and performance of the Advisory Council.

The final amendments to the Constitution resulting from the process, published on 30 November 2016 and effective 1 December 2016 saw changes in ten areas:

  • Geographical distribution of the Trustees
  • The professional background of the Trustees
  • Remuneration of the Trustees
  • Focus and frequency of reviews of structure and effectiveness of the IFRS Foundation
  • The size of the Board
  • Professional background of the Board
  • Geographical distribution of the Board
  • Terms of reappointment of the Board
  • Voting requirements for the Board
  • Meetings of the Advisory Council

The updated Constitution is available on the IASB's website. Appendix III of the Feedback statement offers a track changes version of the updated Constitution.

 

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.