IFRS Foundation Receives Comment Letter from the Deloitte’s IFRS Global Office on ASAF

The IFRS Foundation has received a letter containing comments from the IFRS Global Office of Deloitte after the Foundation had requested for comments on its proposals for establishing an advisory forum on accounting standards.

In their letter the Deloitte’s IFRS Global Office stated that they are completely supportive of the proposals for establishing an ASAF (Accounting Standards Advisory Forum) and also clarified that it is the best way to use the technical expertise and skills that the regional and national standard creating bodies posses and will also help in the implementation and development of International Financial Reporting Standards. Through the letter they also encouraged the Trustees to set up the forum quickly.

According to Deloitte, the Forum would help the International Accounting Standards Board in accomplishing two different goals including developing high-quality finance related reporting principles/standards and assisting in establishing the endorsement/incorporation of these standards without modifying the finance reporting structure of every single jurisdiction. They also gave suggestions regarding setting up a Forum objective, which categorically identifies 2 goals.

For composing the ASAF, Deloitte IFRS Global Office suggested roping in a network of regional groups, national standard setting groups and other bodies that involve in the standard creation and setting procedure from the jurisdictions, which are utilizing the International Financial Reporting Standards in their finance reporting structure as well and those who are planning to incorporate IFRSs.

However, the board also mentioned that they were not completely comfortable with the ASAF’s form that it is likely to adopt. They clarified that while they did recognize the IFRS Foundation’s desire to transform the forum into an efficient body, they also feel that they can meet their aspirations better by appointing a body of over twelve members. Thus, the Deloitte IFRS Global Office made it clear that they are not supportive of the huge size as well as seat distribution pattern that has been proposed by the IFRS Foundation in their letter of comment and view it as unnecessary promoting a mindset of exclusivity, which is not desirable.

They also suggested that co-chairs should be appointed, including one chair from the International Accounting Standard Board and the other from among the members of the Forum since it would indicate that the Forum is collaborative by nature.