Terms of reference
Terms of reference
The group is an advisory body formed to assist the IASB, in consultation with the Trustees, to develop a methodology for fieldwork and effect analyses. The terms of reference will focus on the following areas:
- Members of the group will provide information on, and an assessment of, fieldwork and effect analyses methodologies that are used currently and whether and, if so, how they might be applied to the IASB’s standard-setting activities, together with advice on the most appropriate methodology (or methodologies) that might be used;
- The group will be asked for its advice on any fieldwork and effects analyses on any projects on the current IASB Work Plan and the lessons that might be learned in the development of an appropriate methodology; and
- The group’s advice should also be sought on identifying and managing expectations regarding the scope of effect analyses, because some parties believe that the scope of effects should go much wider and take into account macroeconomic effects such as financial stability impacts. The Foundation’s draft Due Process Handbook (paragraph 3.72) makes clear that the likely effects of any new or revised IFRSs should be assessed (a) in the light of the IASB’s objective of financial reporting transparency; and (b) in comparison to the existing financial reporting requirements.
In line with the IFRS Foundation’s usual policy, members of the consultative group will serve on a voluntary, unpaid basis.
Meetings will be physical meetings to the largest degree possible, but the IASB will aim to provide facilities to allow participation by video link or telephone. We anticipate that this would be a consultative group with a limited lifespan (9 months to a year), with a maximum of 4 to 5 meetings, held approximately every 2 months.