Trustees' review of efficiency and effectiveness of the IFRS Interpretations Committee
The Trustees of the IFRS Foundation undertook a review of the efficiency and effectiveness of the IFRS Interpretations Committee. The review represented part of the Trustees' Strategy Review, which addresses the need for consistent application of IFRSs. An important part of the Interpretations Committee's work is responding to concerns over the consistent application of IFRSs.
The Trustees started the review by requesting comments from interested parties and from members of the Interpretations Committee through the use of a questionnaire. The Trustees granted anonymity to respondents to encourage frank and honest feedback. The Trustees asked for views on:
- the objectives and scope of the activities of the Interpretations Committee
- membership of the Interpretations Committee
- operating procedures
- agenda criteria
- outputs from the Interpretations Committee
- interaction with the IASB
The review began in October 2010 and 34 responses were received by the end of the public comment period in January 2011. This was in addition to the responses received from the Interpretations Committee members themselves. In May 2012 a final review of the efficiency and effectiveness of the IFRS Interpretations Committee was published.
Progress of the review
On 2 May 2012 the IFRS Foundation Trustees published their findings following a review of the efficiency and effectiveness of the IFRS Interpretations Committee.
The Trustees conducted the review through the use of a questionnaire that requested comments from interested parties and from members of the Interpretations Committee. The review began in October 2010 and 34 responses were received by the end of the public comment period in January 2011.
The primary recommendations of the review are:
- that a broader range of 'tools' should be deployed by the Interpretations Committee, enabling it to be more responsive to requests for assistance;
- to revise the criteria used to determine which issues the Interpretations Committee should take action on;
- to improve the Interpretations Committee's communications regarding issues that it decides not to address; and
- to expand the Interpretations Committee's outreach and the transparency surrounding its decisions regarding which issues to address.
The recommendations will enable the Interpretations Committee to deal with a wider range of requests. For example, the Interpretations Committee may make proposals to the IASB for targeted, narrow-scope amendments that are beyond the scope of the Annual Improvements process, or proposals for additional illustrative examples of standards.
The combination of the Interpretations Committee's revised agenda criteria and its ability to deal with a wider range of requests should result in fewer instances of items being rejected from the agenda in future.
The full report can be downloaded here.
Documents and reports relating to the Trustee's review of efficiency and effectiveness of IFRS Interpretations Committee