The Constitution of the IFRS Foundation was originally approved in May 2000 and requires the Trustees to undertake a review of the entire structure of the organisation and its effectiveness every five years. These reviews allow interested parties to raise any issues they wish the Trustees to consider and provide opportunities for comment on the Trustees' proposals.
The Trustees' Constitution Committee helps to manage the process. It carries out wide public consultations with interested parties and publishes discussion documents for public comment. The committee makes recommendations to the Trustees, but any decisions to change the Constitution are taken by all Trustees in public meetings.
The Constitution Committee is not a standing committee. The Trustee Executive Committee, made up of six members, acts as the Constitution Committee for the period of review.
The history of Constitution Reviews
The first mandatory constitution review commenced in 2004 and concluded in 2005. Read more about the changes introduced in the 2005 Constitution Review.
The IFRS Foundation commenced its second Constitution Review in January 2008. Following discussions with stakeholders, the Trustees decided to split the review into two parts. Part one focused on the governance and public accountability of the IFRS Foundation (the creation of a Monitoring Board) and on the size and composition of the IASB. Part two of the Review concerned the remainder of the Constitution beyond governance and the IASB composition.
The first part of the Constitution Review concluded in January 2009 and introduced changes to enhance public accountability. These changes came into effect in February 2009.
The second part of the Constitution Review was completed in February 2010.
The Trustees approved part two of the recommended changes at their meeting in Rio de Janeiro in January 2010, and the amended Constitution came into effect on 1 March 2010.
Further revisions to the Constitution were approved by the Trustees at their meeting in January 2013, following a public consultation of a drafting review proposing changes to the Constitution to reflect the separation of the role of Chairman of the IASB and Chief Executive Officer of the IFRS Foundation. This change is in line with the conclusions of the Monitoring Board Governance Review, which was published in February 2012.
After the 2015 Trustees Review of Structure and Effectiveness the Trustees made further changes to the Constitution.
The main changes were:
- a reduction in the number of Board members from 16 to 14, which is the number of members the Board has been operating with for a while;
- amendments to the geographical distribution of Board members and Trustees; and
- amendments to Board members’ and Trustees’ professional background requirements.
The amendments reflect the conclusions reached unanimously by the Trustees following the latest public consultation, and are laid out in the 2016 Feedback Statement.