The Constitution of the IFRS Foundation was originally approved in May 2000 and requires the Trustees to undertake every five years a review of the entire structure of the organisation and its effectiveness. 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.
2008-2010 Constitution Review
The IFRS Foundation undertook its second Constitution Review. The review began 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 1 was completed by changes to the Constitution that were approved on 1 February 2009.
The Trustees undertook Part two of the review in early 2009. The second part of the review concerned the remainder of the Constitution beyond governance and the IASB composition. The Trustees approved the recommended changes at their meeting in Rio de Janeiro in January 2010. 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.