The Trustees of the IFRS Foundation, the body responsible for the promotion of International Financial Reporting Standards (IFRSs) and oversight of the International Accounting Standards Board (IASB), today announced the conclusions of their meeting in Washington, DC on 6 and 7 July 2010.
Continued commitment to convergence
At the meeting, Sir David Tweedie, Chairman of the IASB, reported on the activities of the IASB, including the recently published ‘modified strategy’ that retained targeted completion dates of June 2011 or earlier for those projects for which the need for improvement of IFRSs and US GAAP is the most urgent. At the same time, the modified strategy identified those projects for which a later completion date would be appropriate because they address matters that we believe have a relatively lower priority or for which further research and analysis is necessary. Sir David’s report can be downloaded by clicking here.
In response to Sir David’s report, the Trustees reiterated their strong commitment to the convergence process underway with the US Financial Accounting Standards Board as an important element of IFRS adoption plans worldwide. The Trustees also supported the IASB’s commitment to develop improved standards by June 2011 and noted the relevance of that date to the G20 and a number of adopting jurisdictions.
At the end of the meeting, Tommaso Padoa-Schioppa, former Italian Minister of Economy and Finance, assumed the chair of the Trustees from Gerrit Zalm. With the appointment of Mr Padoa-Schioppa, Luigi Spaventa retired from the Trustees following the meeting.
The Nominating Committee also reported that the Monitoring Board confirmed the reappointment of Jeffrey Lucy, Chairman of the Australian Financial Reporting Council, and Pedro Malan, former Finance Minister and President of the Central Bank of Brazil, for a second three-year term.
Following a commitment made as a result of the Constitution Review process, the Trustees discussed the next steps regarding their strategic review. After ten years of existence and with the number of countries adopting IFRSs growing, the Trustees agreed that it is an opportune moment to consider the organisation’s strategy looking out over a ten-year time horizon.
The Trustees’ Executive Committee, led by the incoming Trustee Chair Tommaso Padoa-Schioppa, will lead the review on behalf of the Trustees. The review will consider the scope and mission of the IFRS Foundation, governance arrangements, the effectiveness of the standard-setting process and financing arrangements.
Report of the Chairman of the IFRS Advisory Council
Paul Cherry, Chairman of the IFRS Advisory Council, reported on the Council’s meeting in June 2010. Mr Cherry’s report emphasised the work underway at the Council to provide advice to the IASB on its post-2011 work plan. Mr Cherry’s report can be downloaded by clicking here.
Report of the Due Process Oversight Committee
Antonio Vegezzi, Chairman of the Due Process Oversight Committee reported on the Committee’s work to review proposed criteria for assessing possible items for the IASB’s annual improvements process and membership of the SME Implementation Group, formed to support the international adoption of the IFRS for SMEs and monitor its implementation. The proposed criteria for the annual improvements process would be subject to public comment.
Mr Vegezzi also reported on a detailed review undertaken by the Committee in response to concerns expressed by several interested parties regarding the IASB’s decision not to re-expose aspects of the project to amend IAS 37 Provisions, Contingent Liabilities and Contingent Assets. The Committee requested the IASB to take into account the concerns expressed in considering the comment letters received and to report back to the Trustees on the IASB’s conclusions.
Further details are provided in the observer notes, available by clicking here[zip file, agenda paper 7A].
The next scheduled meeting of the Trustees will take place in Seoul, Republic of Korea, on 12 and 13 October 2010.