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The Trustees of the International Accounting Standards Committee (IASC) Foundation, the oversight body of the International Accounting Standards Board (IASB), today announced the conclusions reached at their meeting in London on 17 and 18 March.
At the meeting, the Trustees agreed on the process for the second five-yearly Constitution Review and completed proposals for immediate consultation on the creation of a Monitoring Group and the size and composition of the IASB. They also approved the text of a report on their 2007 oversight activities, created a special committee of Trustees to consider the future of the Standards Advisory Council, and approved the 2007 financial statements of the IASC Foundation.
The launch of the Constitution Review
The Trustees agreed on a process aimed at a thorough and transparent Constitution Review that will enable interested parties to raise any issues they wish the Trustees to consider and will provide opportunities to comment on proposals. Following the normal timeline, the Review should be complete by the end of 2009.
However, there are two issues that are to be dealt with earlier—one related to the Foundation in terms of its governance and public accountability (the creation of a Monitoring Group, previously discussed by the Trustees at their meetings in October-November 2007 and January 2008) and another concerning the composition of the IASB.
These two topics are ones on which the Trustees have already received views from interested parties urging them to expedite the process in these areas, and on which the Trustees believe that delaying implementation until 2010 is not appropriate. Thus the Trustees propose, as the Constitution permits, to deal with these separately and in an accelerated time frame, with a view to implementation on 1 January 2009.
The remaining issues will be dealt comprehensively beginning with a consultation document in the second half of 2008 inviting respondents to raise constitutional issues. A fuller description of the agreed Constitution Review process is attached.
The Trustees intend to publish later this month for public comment their proposals regarding the Monitoring Group and the composition of the IASB.
Continued emphasis on effectiveness of oversight
At the meeting, the Trustees reviewed their effectiveness in achieving their oversight objectives, as set out in the framework agreed in October 2006. The Trustees approved a report of their activities for 2007, which will be posted on this Website. The Trustees also agreed to publish a separate summary of their activities as part of the 2007 Annual Review.
Review of the IASB’s work programme
The Trustees received a report from Sir David Tweedie, Chairman of the IASB, on the IASB’s activities. The Trustees continued to emphasise the relevance of the projects set out in the IASB’s Memorandum of Understanding with the US Financial Accounting Standards Board in February 2006 for the establishment of a single set of accounting standards used worldwide.
Progress on long-term financing arrangements
The Trustees noted that the IASC Foundation has raised £13 million towards its funding requirement for 2008 of £16 million. The Trustees noted that some countries have established a levy system through regulatory bodies and accounting firms, that funding from around the world continues to be diversified and that good progress is being made to ensure sustainable resources for the organisation.
The Trustees remain committed to funding the standard-setting operations through these new funding arrangements and will continue to pursue the £16 million target. While the Trustees are establishing the new regimes, the remaining shortfall will be covered by publications sales and interest on investments.
A more detailed update covering the funding of the IASC Foundation is available on this Website.
Review of the Standards Advisory Council
Noting that the terms of the members of the Standards Advisory Council (SAC) come to an end in December 2008, the Trustees established an internal committee chaired by Philip Laskawy, Vice Chairman of the Trustees, to examine the Trustees’ approach for a reconstituted SAC in 2009. This examination will be of high priority, and the committee will seek to make recommendations at the July 2008 meeting.
The Trustees emphasised their common belief that the SAC, as a globally representative body, should play an important role in reflecting the views of the many parties interested in the IASB’s standard-setting activities. As part of their review, the Trustee committee will examine the composition of the SAC and its terms of reference.
Approval of the 2007 financial statements
The Trustees approved the financial statements that will now be published as part of the IASC Foundation’s 2007 Annual Review. The Trustees expect to publish the Review in early May.
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The next meeting of the Trustees will be held in Washington DC, USA on 8 and 9 July 2008. Information about the meeting will be posted on this Website.
- Mark Byatt, Director of Corporate Communications
Telephone: +44 (0)20 7246 6472
- Sonja Horn, Communications Adviser
Telephone: +44 (0)20 7246 6463
- Tom Seidenstein, Director of Operations, IASC Foundation
Telephone: +44 (0)20 7246 6450