The IFRS Foundation has made a series of
recommendations in a strategy review report, including methods to
enforce its new strategy.
Released today, the strategy review sets out
recommendations in four areas – the IFRS Foundation’s mission,
governance, the standard-setting process and financing, including
operational aspects of due process and standard-setting
oversight.
Highlights of the recommendations include:
- The Foundation should remain committed to the
long-term goal of the global adoption, in their entirety and
without modification, of IFRSs as developed by the IASB; - The current primary focus of the Foundation
and the IASB should remain on developing standards for private
sector entities i.e. both publicly traded entities and SMEs; - The Monitoring Board, the Foundation and the
IASB should enhance interaction and procedures to reinforce the
principles of transparency, public accountability and independence.
In doing so, the roles and responsibilities of each element of the
organisation’s governance should be clearly defined; - The framework for the trustees in their
oversight of the IASB’s due process should be clarified. The
trustees’ Due Process Oversight Committee (TDPOC) should review and
discuss due process compliance regularly throughout the
standard-setting process and at the end of the process before a
standard is finalised. The TDPOC should report regularly on these
activities to the Trustees and in its annual report; and - The existing base of financing should be
expanded to enable the Foundation to serve the global community
better and fulfil the new strategy. Specifically, funding should be
proposed by the trustees to be on a long-term basis at least three
to five years, be publicly sponsored, be flexible to permit the use
of differing mechanisms and to adjust to budgetary needs, be shared
among jurisdictions on the basis of an agreed formula consistent
with the principle of proportionality and provide sufficient
organisational accountability.
The deadline to comment on the review is 25
July.
Working together
The trustees and the Monitoring Board have
reaffirmed their commitment to working together more closely to
ensure their respective reviews provide one co-ordinated governance
and strategy package.
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.
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 GlobalDataThe Monitoring Board is currently conducting a
Governance Review looking at its composition, respective
responsibilities and its role as well as the trustees and IASB.
“The Monitoring Board will develop and publish
an action plan for implementation of its governance review with a
desire to present, along with the trustees, an integrated package
of governance improvements,” IFRS Foundation Monitoring Board
acting chair Masamichi Kono said.
IFRS Foundation Trustees co-chairs Aki
Fujinuma and Robert Glauber added:
“The trustees initiated their review at the
urging of our stakeholders in order to prepare for the Foundation’s
second decade. The trustees are strongly committed to working with
the Monitoring Board to ensure that the outcome of our respective
reviews provide one co-ordinated package.”
Related article
ICAEW warns against IFRS Foundation
