IASC Foundation Make Changes to Their Governance Arrangements
By Theresa Hickman-Oracle on Feb 17, 2010
I don't know what rock I have been living under, but did you know that the IASC (International Accounting Standards Committee) Foundation will soon be changing its name to IFRS Foundation? This is not the topic of my blog, but I learned this by reading their revised Constitution which will be put into effect March 1, 2010. In addition, the names of the Interpretations Committee and the Advisory Council will be changed to IFRS Interpretations Committee and the IFRS Advisory Council, respectively. However, the name of the IASB standard-setting body will not be changed since they are already a very recognized brand.
Maybe I'm an accounting geek, but I found the revised Constitution to be interesting reading. It has tracked changes turned on with comments so you can clearly see what the changes are. For example, all references to "accounting standards" will be replaced with "financial reporting standards."
On Feb. 15, the IASB released a press release announcing that the renamed IFRS Foundation, which is the oversight body of the IASB, announced enhancements to their governance arrangements. These changes complete the second part of the Foundation's Constitution Review aimed at improving public accountability, stakeholder engagement, and operational effectiveness.
Some of the major changes listed in the Constitution (beyond me learning about their name change) include:
- Emphasis on promoting the adoption to IFRS
- IFRSs based upon clearly articulated principles, not rules
- Identification of investors being the target audience for financial information. This change does not minimize the importance of other consumers of financial information, such as regulators.
- Term limits for the IASB members to ensure they rotate members with practical experience
You can read the full press release here.