IFRS Advisory Council

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The IFRS Advisory Council (IFRS AC) is the formal advisory body of the IASB responsible for international accounting standards and the trustees of the IFRS Foundation .

Basics

The IFRS AC is one of the bodies in the structure of the IFRS Foundation . According to the constitution of the IFRS Foundation, the other bodies are the International Accounting Standards Board (IASB), the IFRS Interpretations Committee , the IFRS Foundation Trustees, the IFRS Foundation Monitoring Board and the Executive Director with staff.

The predecessor of the IFRS AC was the Standards Advisory Council (SAC). The IFRS AC replaced the SAC in 2010. Initially, this was just a change of name for the body, which is why the members appointed for the SAC in 2009 automatically became members of the IFRS AC. The main differences between IFRS AC and SAC are:

  • The members of IFRS AC are generally appointed as representatives of organizations.
  • The focus of IFRS AC is much more on strategic issues than on specific accounting issues.

The IFRS AC is not the only advisory body of the IASB, but it differs from all other advisory bodies in that it

  • is codified in the statutes of the IFRS Foundation and
  • not only advises the IASB, but also the trustees.

The composition and tasks of IFRS AC are regulated in paragraph 43ff. of the Articles of Association of the IFRS Foundation.

function

According to Art. 43 of the statutes of the IFRS Foundation, the IFRS AC should provide a forum for the participation of organizations and individuals with an interest in international financial reporting and different functions as well as different geographical origins. Specifically, the statutes of the IFRS Foundation provide for the following tasks for the IFRS AC:

  • Advising the IASB on decisions regarding its work program and priorities for its work
  • Information from the IASB on the perspectives of the organizations and individuals represented in the IFRS Council on the main standard-setting projects
  • Advising the IASB and the trustees on other topics

The Rules of Procedure (terms of reference and operating procedures) to IFRS AC concretized these statutory functions in that the advice of the IASB to u. a. refers to

  • the agenda of the IASB
  • the project schedule (the work program) of the IASB including the project priorities as well as any changes to the agenda and priorities and
  • concrete projects of the IASB with a special focus on their practical application and implementation issues, whereby this advice also relates to existing standards that require the activities of the IFRS Interpretations Committee

As a secondary objective, the rules of procedure name measures to support broad participation in the development of IFRS as high quality and globally accepted standards. This includes using the global networks of the influential organizations represented in the IFRS AC.

membership

According to Art. 44 of the statutes of the IFRS Foundation, the IFRS AC has at least 30 members. The fact that the members of the IFRS AC are generally appointed as representatives of organizations distinguishes the IFRS AC from its predecessor SAC. There are currently 50 members representing 51 organizations. The members are named on the website of the IFRS Foundation.

The members are appointed by the trustees. Their term of office is a maximum of 6 years, the first appointment being for a maximum of three years and a maximum of one second appointment. According to the rules of procedure of the IFRS AC, the members should be recruited from the following groups of parties involved in accounting:

In addition to membership, the trustees can grant organizations with influence in the financial community official observer status.

The rules of procedure stipulate that members who have not attended three meetings in a row are asked to give up their membership in the IFRS AC. The members are not remunerated and generally do not receive any reimbursement of their travel expenses.

The German members of the IFRS AC were or are:

  • Christoph Ernst (2009 - as representative of IOSCO)
  • Norbert Barth (2009-2013 - as representative of CRUF)
  • Christoph Hütten (2009-2014, from 2012 as Vice-Chairman - as a representative of ERT)
  • Thomas Blöink (2011-2014 - as representative of IOSCO)
  • Liesel Knorr (2011-2014 - representative of the DRSC in the pool of four European national standard setters)
  • Markus Grund (2013–2015 - as representative of the International Association of Insurance Supervisors)
  • Jens Freiberg (since 2014 - as representative of BDO)
  • Lothar Less (since 2014 - as representative of CRUF)
  • Robert Köthner (2015–2017 - as representative of ERT)
  • Holger Daske (since 2015 - as a representative of IAAER)
  • Jürgen Kirchhof (since 2015 - as representative of the European Central Bank)
  • Andreas Barckow (since 2019 - as a representative of the DRSC)

Chair

Like the members, the chairperson of the IFRS AC is appointed by the trustees. The tasks of the chair are regulated by Art. 9 of the rules of procedure of IFRS AC. So far, the chair has been:

  • 2009–2014: Paul Cherry (former chairman of the Canadian Accounting Standards Board (AcSB))
  • since 2014: Joanna Perry (former Chair of the New Zealand Financial Reporting Standards Board (FRSB))

In addition to the chairperson, the trustees appoint two vice-chairpersons. The German Christoph Hütten was one of the vice-chairs from 2012 to 2014.

Meetings

According to Art. 45 of the statutes of the IFRS Foundation, the IFRS AC meets at least twice a year. The rules of procedure of the IFRS AC basically provide for three 2-day meetings per year, but since 2017 only two 2-day meetings have been held per year.

The meetings are public. The rules of procedure of the IFRS AC provide for an obligation to participate. a. for the Chairman of the IASB. The other IASB members should in principle also participate.

Web links

IFRS AC website

IFRS Foundation Articles of Association (December 2018 version)

Rules of Procedure of the IFRS Advisory Council (version July 2014)

Individual evidence

  1. ^ A b Paul Cherry: Former IFRS Advisory Council Chairman, Paul Cherry, reflects on how the Advisory Council has evolved in recent years. In: IFRS Foundation website. January 16, 2014, accessed February 11, 2019 .
  2. ^ Advisory Council members. In: IFRS Foundation website. Accessed February 11, 2019 .
  3. ^ Paul Cherry to chair IASB Standards Advisory Council. In: IFRS Foundation website. December 3, 2008, accessed February 11, 2019 .
  4. ^ Joanna Perry appointed as Chairman of the IFRS Advisory Council. IFRS Foundation website, December 13, 2013, accessed February 11, 2019 .