Deloitte Issues Letter on the Review Conducted on IFRS Foundation’s Draft
The IFRS global office of Deloitte has issued a letter to the IFRS Foundation, which contains comments related to the review conducted on its draft-IFRS Foundation Constitution—Drafting Review: separating the role of the Executive Director and the IASB Chair.
In their comment letter the IFRS global office of Deloitte stated that they support the move adopted by the IFRS Foundation and also commends them for their quick act related to implementing the changes recommended by the IFRS Foundation Monitoring Board governance report and the Strategy review related report of the trustees.
The letter containing comments noted that the IFRS global office of Deloitte is supportive of the alterations to the constitution of IFRS Foundation, subject to their proposed alterations regarding reinforcing the partition of the International Accounting Standards Board Chair and the IFRS Foundation Executive Director.
The IFRS Global office of Deloitte also stated that a certain paragraph (15-b) should be written all over again for reinforcing the partition between the International Accounting Standard Board Chair and the IFRS Foundation Executive Director. The reason why they have recommended this alteration is because they feel that a conflict will arise in case the International Accounting Standard Board Chair is given exclusive veto power regarding the Executive Director appointment, which is clearly indicated in the wordings that have been proposed.
They also stated that the section 47 requires more clarification in order to get rid of the perception regarding the involvement of the Executive Director in matters pertaining to the International Accounting Standard Board’s principle/standard-setting related activities.
The IFRS Global office of Deloitte also stated that they are aware of the fact that the main aim of the paragraph is to ensure cooperation and liaison between the International Accounting Standards Board Chair and the executive director on issues related to standard creation, which has been brought into the notice of the IFRS Foundation Trustees. However, they feel that the use of the word ‘report’ in the paragraph will only result in confusion. They further mentioned that section 47 should be amended and the wordings of the same should be tweaked to avoid any confusion.
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