IFRS Monitoring Board Proposes Governance-related Implementation

February 07, 2011 / Source: http://inaudit.com | Jack Humphrey, Regulatory journalist

The International Financial Reporting Standards (IFRS) Foundation monitoring board has opened its governance-related implementation process proposals for public comment today.

The review, Consultative Report on the Review of the IFRS Foundation’s Governance, includes a series of concrete proposals and alternatives which are still requiring additional considerations on the exact processes for implementation. Nonetheless, the monitoring board wants it implemented sooner.

The proposal particularly focuses on institutionalizing the composition and duties of the monitoring board, trustees and IASB. The monitoring board consists of the Emerging Markets and Technical Committees of the International Organization of Securities Commissions (IOSCO), the Financial Services Agency of Japan (JFSA), the European Commission, and the US Securities and Exchange Commission.

Primary concerns of the IFRS Foundation monitoring board are “whether the current governance structure effectively promotes the standard-setter’s primary mission of setting high quality, globally accepted standards as set forth in the Constitution of the IFRS Foundation, and whether the standard-setter is appropriately independent yet accountable.”

On January 31, inAudit has reported the recommendations of the Accounting Standards Board (ASB) of the FRC and the European Financial Reporting Advisory Group (EFRAG) for standard setters to improve the implementation of accounting standards.

The recommendations were the product of the discussion held by ASB and EFRAG calling for standard setters to consider the effects of accounting standards in order to improve their due process in its end to end implementation.

Public comment for the new proposal of the IFRS monitoring board runs until April 8 this year.