The due process followed by the International Accounting
Standards Board (IASB) is one item the board’s oversight body is
seeking feedback on in part two of its five-yearly constitution
review.
The first part of the International Accounting Standards
Committee Foundation’s (IASC) review, which involved establishing a
monitoring group and expanding the number of IASB members from 14
to 16, is nearing completion and the IASC’s trustees are now
welcoming comment on any constitutional issue. They are
particularly interested in a series of topics outlined in a new
consultation document.
Whether the current due process takes too long, and if so, which
parts of the existing procedures should be shortened or eliminated,
is one such issue.
The trustees have also asked whether there could be a separate
fast track due process procedure for urgent cases.
Whether the constitution should make specific reference to an
emphasis on a principle-based approach to standards is another
topical issue, as is whether the standard setter should broaden its
remit to include setting standards for entities such as those in
the not-for-profit and public sectors.
The IASB’s agenda-setting process is another item for
discussion, particularly any potential impact on the board’s
independence.
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By GlobalDataThe trustees also acknowledge there are organisations that
establish standards that are based on, or have a close relationship
with, IFRS. The IASC already recognises the need to collaborate
closely with accounting standard-setting bodies, but the trustees
are now considering whether the constitution should be amended to
allow for closer collaboration with a wider range of organisations
whose objectives are compatible with the IASC’s objectives.
The IASB’s funding is also being considered. The document notes
that while the trustees have made progress towards establishing a
broad-based funding system that helps to ensure the independence
and sustainability of the standard-setting process, they still have
no authority to impose a funding system on IFRS users.
Comments are due by 31 March 2009.
