Increased diversity of the International
Accounting Standards Board (IASB) would address concerns about
legitimacy and enhance the standard setter’s credibility, according
to respondents of an IFRS Foundation governance review.
The IFRS Foundation monitoring board received
80 responses to a consultation launched in February.
Some of the respondents, however, warned
increased geographical diversity should not be pursued “at the
expense of quality, expertise and technical competence of
candidates”.
Most respondents backed a recommendation to
separate the dual roles of the IASB chair and the IFRS Foundation
chief executive, making clearer a separation of staff dedicated to
standard-setting from those working on other foundation activities,
such as IASB oversight. Respondents said the separation of the two
roles would safeguard the independence of the standard-setting
process, ensuring proper checks and balances and improving the
objectivity of oversight.
The consultation also found there should be
more transparency in the nomination of IFRS Trustees. Some
respondents believe the current nomination process is not well
understood by those not involved and the roles of the nominating
committee and the monitoring board were unclear.
The IFRS Foundation monitoring board said it
is undertaking work to produce and publish a feedback statement and
an action plan on specific steps to improve the governance
structure of the IFRS Foundation.
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