THE oversight body of the IASB has launched a review into the governance and financing of the global accounting standard setter.
It will focus on three main areas: ensuring that the relevance of IFRS is maintained; consistency of the application of IFRS; and governance and financing.
The review, which must be undertaken every five years as part of the IFRS Foundation’s constitution, could placate European Union policymakers concerned about its governance, accountability, transparency and potential conflicts of interests among its members.
Members of the European parliament’s influential economic affairs committee have made numerous attempts to subject the IASB to an independent investigation and last year seized upon the organisation’s poor record of filing director changes at Companies House in order to raise concerns about its structure.
Opponents suggest that, under its current structure, it is unclear that the IASB is accountable to policymakers in the same way other international bodies are, and that there is little clarity about how it spends EU funds.
Previous reviews, published in 2005, 2010 and 2012, recommended enhancements to the governance, accountability and operational efficiency of the IFRS Foundation and the IASB, while a governance review by the IFRS Foundation Monitoring Board was completed in 2012. The recommendations of all reviews have been implemented.
Commenting on the consultation, Michel Prada, chairman of the IFRS Foundation Trustees, said: “Previous reviews have significantly strengthened the public accountability and institutional underpinnings of the IFRS Foundation and the IASB.
“Today we are seeking public comment on what further enhancements can be made, and how the IFRS Foundation should respond to an ever-changing reporting landscape.
“The Trustees welcome all feedback and encourage interested parties to participate in this important review.”
The IASB has issued amendments to its existing insurance contracts accounting standard, IFRS 4
THE accounting watchdog has launched disciplinary formal complaints against KPMG over its audit of a Lloyd’s of London syndicate Equity Red Star
The UK’s largest listed companies should disregard the accounting advice of reporting watchdog the FRC, a group of investors have urged chairmen of FTSE 350 businesses
Accountancy watchdog the FRC has dropped its investigation into the former chief financial officer of Tesco, nearly two years after the supermarket was engulfed in an accounting scandal