IFRS Foundation Releases Proposals for Establishing an ASAF
The International Financial Reporting Standards Foundation has released its proposals pertaining to establishing an Accounting Standards Advisory Forum, and has requested for comments from public on the same. The idea for setting up ASAF was recommended by the trustees of IFRS Foundation with an intention to offer technical feedback and advice to the International Accounting Standards Board from the community that sets standard.
The ASAF is accountable for creating a highly formal plus streamlined representation of regional and national matters that are to be included in the due procedure pertaining to standard creation workflow. It must be noted that the last date for commenting on the proposals is 17th December 2012.
The proposals submitted by the IFRS Foundation revolved around the creation of a group that could give relevant advice to the International Accounting Standards Board. The Foundation insisted that the group should consists of standard creators and setters who set national financial accounting principles as well as regional groups that were interested in finance related reporting.
The setting of the Accounting Standards Advisory Forum would further help in making IFRS acceptable globally. Today, entities in over hundred countries require or have given permission for utilizing International Financial Reporting Standards. This also includes members of the G20 economies. As many as half of the Fortune 500 companies globally now do their reporting on the basis of IFRS. In view of the global adoption of IFRS, it is being contemplated that most of the present bilateral engagement and dialogue that is taking place between the International Accounting Standards Board and some of the primary national based standard creators/setters as well as regional groups will be incorporated in the Forum’s activities.
Sharing his views on the proposals, Chairman of IASB, Hans Hoogervorst stated that the IAS Board has tried its best to cooperate with the community that sets accounting standards, primarily through a number of bilateral ties/agreements as well by making arrangements that were very informal. He also clarified that this particular method has helped the board well and it is also evident now that such types of bilateral agreements are not sufficient anymore since a number of nations are now utilizing IFRS. In view of these developments, establishing a forum is the ideal thing to do.