- establish a formal link between the organisation and a Monitoring Group comprising representatives of public authorities and international organisations that have requirements for accountability to public authorities
- expand the membership of the International Accounting Standards Board (IASB) to 16 members and add new guidelines regarding the geographical diversity of the members of the IASB
The establishment of the link to a Monitoring Group, a group established by public authorities outside the IASC Foundation’s organisational framework, is aimed at enhancing the transparency and public accountability of the IASC Foundation, while not impairing the independence of the standard-setting process.
As contemplated by the proposal, the initial membership of the Monitoring Group would comprise the responsible member of the European Commission, the managing director of the International Monetary Fund, the chair of the IOSCO Emerging Markets Committee, the chair of the IOSCO Technical Committee, the commissioner of the Japan Financial Services Agency, the chairman of the US Securities and Exchange Commission, and the president of the World Bank.
The Monitoring Group would have the responsibility of approving the selection of Trustees. The Trustees would also report to the Monitoring Group regularly to enable it to address whether and how the Trustees are fulfilling their role set out in the Constitution.
Regarding the IASB’s composition, the Trustees reiterate in their proposals that the Constitution’s emphasis on ‘professional competence and practical experience’ should remain paramount. At the same time, the expansion of the IASB would enable it to engage more efficiently and effectively with interested parties throughout the world and bring new perspectives to its deliberations. Furthermore, the addition of a geographical component would strengthen the legitimacy of the IASB in the view of the countries choosing to adopt IFRSs.
The Trustees’ proposals reflect consultations that they have had with many parties with an interest in the development of accounting standards. The Trustees have discussed their proposals with members of the proposed Monitoring Group, the Standards Advisory Council(the organisation’s primary advisory group) on two occasions, and stakeholders in their respective countries.
Most recently, and in advance of the formal consultation period, the Trustees held a series of round-table meetings in London on 19 June with thirty participating organisations. As a result of those discussions the Trustees revised and clarified their proposals.
The Trustees expect to complete the first part of the Constitution Review at their meeting in Beijing in October, with the changes taking effect from 1 January 2009.
A review of other elements of the IASC Foundation’s Constitution will begin after the meeting in Beijing. The Trustees will publish a further discussion document inviting respondents to suggest topics for consideration by the Trustees. It is expected that consultations will be held during the course of 2009, with changes taking effect from 1 January 2010.
The discussion document Review of the Constitution: Public Accountability and the Composition of the IASB - Proposals for Change can be viewed on this Website. Printed copies (ISBN 978-1-905590-72-8) will be available shortly upon application to:
IASC Foundation Publications Department
30 Cannon Street
London EC4M 6XH
Tel: +44 (0)20 7332 2730
Fax +44 (0)20 7332 2749
- Mark Byatt , Director of Corporate Communications, IASB
Telephone: +44 (0)20 7246 6472
, Communications Adviser, IASB
Telephone: +44 (0)20 7246 6463