The monitoring body of the IFRS Foundation has
said convergence must not be a substitute for adoption of IFRS in
the push towards one set of global accounting standards.

In its strategic review of the IFRS
Foundation, the IFRS Trustees reaffirmed the commitment to their
vision of IFRSs, as developed by the International Accounting
Standards Board (IASB), saying the standards should be adopted in
their ‘entirety and without modification’.

This affirmation is poignant because one of
the main focuses in the first decade of the IASB has been
convergence, particularly with US GAAP although the Trustees assume
there will be a positive response on adoption from the US and other
large economies such as Japan soon.

The Trustees state that ‘failure to make such
commitments’ may result in the strategy being re-reviewed
subsequently leading to changes to the Trustees and the IASB

Another important recommendation is for the
Foundation to work with national and international market and audit
regulators, accounting standard-setters, regional bodies and
accountancy bodies to find out ‘where adoption of IFRSs is
incomplete or where there is divergence from the full set of IFRSs
as issued by the IASB’.

The Trustees also called for the Foundation to
work towards gaining a better understanding of how standards are
being implemented around the world to improve the quality of the

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.


The IFRS Foundation Monitoring Board then
underlined the importance of the standard setter’s independence,
with regards to accounting standard-setting and the selection of
board membership especially on the back of much political pressure
in the years since the financial crisis, in its governance

However, the Monitoring Board said there was
opportunity for ‘improved communications and procedures in relation
to the IASB agenda and chairmanship without infringing on its
independence’ to ensure selections will position the IASB to fulfil
capital markets’ demands for high quality standards.

“We strongly believe that the measures
identified herein will further improve the current governance
mechanism while enhancing transparency of its performance. We hope
that increased accountability will be reflected through
stakeholders’ confidence in the standard-setter and hence IFRSs.”
IFRS Foundation Monitoring Board acting chairman Masamichi Kono

The two monitoring bodies reaffirmed their
commitment to continue to work closely “for a full implementation
of the ideas contained in this joint package”.