EFRAG thinks that the periodic review of the IASCF (IASC Foundation) Constitution is an important part of the IASCF’s processes. It is pleased the IASCF is seeking comments on the specific proposals made following its consideration of the responses received concerning areas upon which to focus its review.
EFRAG wishes to draw attention to the following areas:
• The Constitution should express commitment by both the IASB and the IASCF for principle-based standards;
• The convergence objective should be removed from the constitution at this stage, because IFRSs have now achieved a sufficient degree of acceptance and have been adopted widely enough for them to be fully independent of national standards. The emphasis needs to be on the adoption of high quality global standards;
• EFRAG strongly believes that the IASB should have a public consultation on the IASB work plan. EFRAG does not think that the proposed amendment to introduce mandatory consultation about the agenda with the Trustees and the SAC goes far enough. EFRAG thinks that regular public consultation with a wider constituency is necessary to ensure that the IASB is fully aware of the range of views about the agenda and the prioritisation of projects.
091023 Final Draft Supervisory Board letter - IASCF Constitutional Reviewclean.pdf