The IFRS Foundation's Constitution requires the Trustees to undertake a review of the organisation’s strategy and its effectiveness, including the organisational structure, every five years.
The governance, accountability and operational efficiency of the IFRS Foundation and the International Accounting Standards Board (Board) have been significantly enhanced following previous reviews, which include:
- 2003 – Constitution Review
- 2007 – Strategy Review
- 2008 – Constitution Review
- 2010 – Strategy Review
- 2015 – Review of Structure and Effectiveness
- 2021 – Strategy Review
Some examples of enhancements to the organisation following these reviews include:
- Mission: clarification of the purpose of financial reporting standards and the scope of the organisation, as well as development of the strategic goals of the organisation;
- Governance: introduction of a public accountability link by the establishment of the Monitoring Board, confirmation of the three-tier governance structure of the organisation, and clarification of the oversight role of the Trustees;
- Process: regular reviews and enhancements of the organisation's due process, including the establishment of the Due Process Oversight Committee and the introduction of a number of enhancements to the Board's process, including Agenda consultations, Post-implementation Reviews, the Accounting Standards Advisory Forum and the enhancement of the IFRS Interpretations Committee; and
- Funding: clarification that the funding system must maintain the independence of the standard-setting process, and establishment of a firmer long-term basis of funding for the organisation.
The Trustees are currently undertaking their next periodic review to assess future strategy, which will conclude in 2021. In preparing for that review, the Trustees published a consultation paper on sustainability reporting in September 2020, seeking stakeholder views to guide their discussions.
This paper asks:
- is there a demand for global sustainability standards?
- should the IFRS Foundation play a role in achieving global sustainability standards?
- to what extent should the Foundation get involved?
Any changes to the Foundation’s remit would be subject to further public consultation.