Monitoring Board announces procedure and timetable for review of existing members and selection of new ones

May 02, 2013

The Monitoring Board (MB) of the IFRS Foundation today announced the outcome of its meeting held on 11 April 2013 in London where the MB determined the procedure and time table for the assessment of existing members and selection of new ones against the membership criteria announced in March.

The Monitoring Board's Final Report on the Review of the IFRS Foundation's Governance published in February 2012 identified a number of enhancements to the governance framework including expanding the Monitoring Board´s membership and beginning periodic assessments of the members against membership criteria.

These criteria were announced on 1 March 2013:

• The jurisdiction has made a clear commitment to IFRSs and promotes global acceptance of a single set of high quality international accounting standards. It mandates or permits the application of IFRSs to consolidated financial statements of companies raising capital in its relevant market.
• The IFRSs to be applied are essentially aligned with IFRSs developed by the IASB.
• The jurisdiction can be regarded a major market for capital-raising in the global context.
• The jurisdiction makes financial contributions to the setting of IFRSs on a continuing basis.
• The jurisdiction has in place and in operation a robust enforcement mechanism.
• The relevant national or regional standard-setting body actively contributes to the development of IFRSs.

At the meeting held on 11 April, the MB agreed on the following three procedures for expending the current membership and assessing the existing members:

Selection of new member candidates (with the exception of rotating members)

1. The Monitoring Board will issue a public call for nominations.
2. The Monitoring Board will complete the selection of new members in accordance with the Monitoring Board membership criteria.

Selection of new rotating members (to be selected in consultation with IOSCO)

1. The MB determines the selection procedure in consultation with IOSCO, and IOSCO will be asked to recommend candidates.
2. The Monitoring Board will complete the selection of rotating members in accordance with the Monitoring Board membership criteria.

Assessment process of existing members

1. All existing Monitoring Board members will be assessed in accordance with the Monitoring Board membership criteria.

The timetable for these procedures, which are to be conducted in parallel, is rather vague, however, the MB "anticipates completion of the process in 2013".

Please click for access to the press release on the Monitoring Board website.