Global Standards for the world economy

Tuesday 19 November 2019

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Trustee reviews of structure and effectiveness


Trustee reviews of structure and effectiveness


The IFRS Foundation's Constitution requires the Trustees to undertake a review of the structure and effectiveness of the organisation every five years.

Previous reviews of the Constitution (in 2005 and 2010) and the organisation's strategy (in 2007 and 2012) have resulted in significant enhancements to the governance, accountability and operational efficiency of the IFRS Foundation and the International Accounting Standards Board. A Governance Review by the IFRS Foundation Monitoring Board was completed in 2012.

Some examples of enhancements to the organisation following previous reviews include:

  • Mission: clarification of the purpose of financial reporting standards and the scope of the organisation, as well as development of the strategic goals of the organisation;
  • Governance: introduction of a public accountability link by the establishment of the Monitoring Board, confirmation of the three-tier governance structure of the organisation, and clarification of the oversight role of the Trustees;
  • Process: regular reviews and enhancements of the organisation's due process, including the establishment of the Due Process Oversight Committee and the introduction of a number of enhancements to the Board's process, including Agenda consultations, Post-implementation Reviews, the Accounting Standards Advisory Forum and the enhancement of the IFRS Interpretations Committee; and
  • Funding: clarification that the funding system must maintain the independence of the standard-setting process, and establishment of a firmer long-term basis of funding for the organisation.

The image below provides a timeline of the various reviews undertaken by the organisation:

Trustees review timeline image