Accounting

IASB Oversight Body Wants Feedback on Operations

By David R. JonesThe IFRS Foundation is garnering views from stakeholders on its mission, governance and processes as part of a required review, the organization said in a July 7 notice.The London-based foundation, which serves as the oversight body for the standard setting International Accounting Standards Board (IASB), published IFRS Foundation Trustees' Review of Structure and Effectiveness: Issues for the Review to solicit comments on its direction and operations in the coming years.Three Major Concerns The foundation indicated in its 2015 annual report that it would conduct the review to ensure that international financial reporting standards are “developed within the broader context of wider developments in corporate reporting and in technology”.Under its constitution, the foundation must conduct an evaluation of its entire structure and effectiveness every five years.The 2015 review zeroes in on three key concerns:ensuring that IFRS remains relevant;maintaining consistent application of IFRS; andassessing the foundation's governance and financing, including proposed changes to the IASB's size.Broadening Remit? To make sure IFRS remains useful, the foundation is assessing whether the IASB should expand beyond its current responsibilities to set standards for private entities to encompass the public sector.The International Public Sector Accounting Standards Board (IPSASB), an independent standard setting body operating under the auspices of the International Federation of Accountants, already sets international public sector accounting standards, the foundation noted.No Planned Expansion In response to a 2014 IPSASB consultation, the foundation said that it would be impractical for the IASB to assume responsibility for public-sector standards—at least in the short- to medium-term.As a result, “the Trustees do not intend, as part of this current review, to consider further the possible expansion of the IASB's scope to encompass financial reporting standards for the public sector.”Still, the foundation wants opinions on whether the IASB should develop standards for other entities.IFRS for SMEs Another aspect of the foundation's relevance review deals with reporting standards for small and medium sized enterprises (SMEs).  The IASB in May issued several narrow-scope amendments to its 2009 IFRS for SMEs as part of a comprehensive review of the standard.Capital Markets Union In its comprehensive...

Thank you for visiting FEI.

Join FEI to see the rest of this exclusive content.
  • Stay on top of latest news and research.
  • Connect with financial experts and executives like you.
  • Get access to hundreds of professional resources.

Free Content