The trustees of the IFRS Foundation, which oversees the International Accounting Standards Board, have reduced the board’s number of members as part of a constitutional review.
Apart from the reduction in the size of the IASB from 16 members to 14, other major changes include:
- For the appointment of trustees, North America and South America will be combined into a single Americas category.
- The number of “at large” trustees will increase.
- It is no longer required that two trustees come from audit firms.
- Trustees will be paid an annual fee, as opposed to a fee per meeting.
For full details, see foundation has released a detailed document.
“The amendments to the constitution follow a very thorough review and consultation process, striking a balance between all the helpful input we received from constituents,” said Michel Prada, the chair of the foundation, in a statement. “These changes safeguard the flexibility required to meet the evolving demands on the organisation and ensure the composition of both trustees and board members is as inclusive and balanced as it needs to be for the organisation to operate effectively.”
The IFRS Foundation noted that while the constitution had called for 16 IASB members, the board has been operating with 14.
The constitution itself requires the trustees to review the foundation’s structure every five years. The current changes are a result of a review that began in July of last year.