Working with standard-setters and regional bodies
National standard-setters and regional bodies are important participants in the IASB’s standard-setting process.
The IASB needs to be confident that the Standards it develops can be applied, on a consistent basis, across the broad range of countries applying IFRS. This task is easier to achieve with the support of national standard-setters and regional bodies who have this important local and regional knowledge.
Accounting Standards Advisory Forum
In 2012 the IFRS Foundation Trustees published a series of recommendations to the IASB as part of their comprehensive review of the organisation’s strategy. One of the most important recommendations was that the IASB should establish a platform for enhanced co-operation with the worldwide accounting standard-setting community.
In response to this recommendation, the Accounting Standards Advisory Forum (ASAF) was established in 2013 to streamline and formalise the IASB’s relationship with national standard-setters and regional bodies. The objective of the ASAF is to provide an advisory forum in which members can constructively contribute towards the achievement of the IASB’s goal of developing globally accepted high-quality accounting standards.
More information about the ASAF can be found here.
When the IFRS Foundation formed the ASAF, it noted that the ASAF would be an important group but that it should not be an exclusive group. The IASB continues to maintain dialogue with other accounting standard-setters around the world and works with them on research projects, implementation challenges, outreach activities, field-testing and Post-implementation Reviews.
National standard-setting bodies
The IASB seeks active co-operation with national standard-setters during all stages of the development of IFRS. In 2014 the IASB agreed a Charter to establish the key principles of co-operation between the IASB and those accounting standard-setters and other accounting bodies that participate in the International Forum of Accounting Standard Setters (IFASS), referred to in the Charter as ‘other accounting standard-setters’.
The Charter reflects the partnership between the accounting standard-setters and the IASB who all operate in the public interest. The Charter can be accessed here.
To foster the exchange between national standard-setters and regional bodies and the IASB, the IFRS Education Initiative organises an annual meeting of world standard-setters in London.
Representation of regional bodies
As a consequence of the growth in the IFRS community, some regions have formed regional representative bodies to facilitate discussions on regional accounting standards issues, undertake research collectively, share experiences on the adoption of IFRS and provide input to the IASB's standard-setting process.
The formation of these regional groups takes nothing away from the important role of national standard-setters within these regions. However, such regional groups have the potential to better co-ordinate views across the region on important standard-setting activities, and in some cases to create a strong regional voice.
The regional groups are:
- Asian-Oceanian Standard-Setters Group (AOSSG);
- European Financial Reporting Advisory Group—Consultative Forum of Standard Setters (EFRAG CFSS);
- Group of Latin-American Standard-Setters (GLASS); and
- South African Financial Reporting Standards Council, supported by the Pan African Federation of Accountants (PAFA).
International Forum of Accounting Standard Setters (IFASS)
IFASS is a grouping of national standard-setters from around the world, plus other organisations that have a close involvement with financial reporting issues. It is a forum at which interested stakeholders can discuss matters of common interest. The group is chaired by Tricia O’Malley, a former Chair of the Canadian Accounting Standards Board and former member of the IASB.