AICPA Comments on IFRS Foundation Trustees’ Review of Foundation’s Structure and Effectiveness

November 19, 2015

The American Institute of CPAs (AICPA) submitted a comment letter to the International Financial Reporting Standards (IFRS) Foundation Trustees on the Trustees’ Review of Structure and Effectiveness: Issues for the Review expressing its overall support of the Foundation’s views on the issues identified in the Review

The Institute’s November 12 letter additionally made specific points of emphasis on certain questions raised in the Review, but did not revisit the Foundation’s four primary strategic goals – development of a single set of standards, global adoption of IFRS, consistency of application and implementation and IFRS Foundation as an organization. 

In response to the questions raised, the AICPA said that:

  • Private, not-for-profit organizations are an important constituency of financial reporting and the International Accounting Standards Board (IASB) should extend its remit to that sector;

  • IASB should play an active role in developments in wider corporate reporting through cooperative efforts described in the Review because, while financial statements prepared under IFRS serve as a fundamental foundation, they do not by themselves sufficiently communicate how companies create value in the short, medium and long term;

  • It supports the Foundation’s goal of having the IFRS Taxonomy recognized as the globally agreed standard to tag and intelligently structure financial information and applauds the Foundation’s proactive efforts to consider taxonomy implications in developing new standards; and

  • It urges the Foundation to continue its efforts to find a permanent funding solution from geographically diverse sources for the IASB’s activities, which would result in increased world-wide confidence in the IASB’s role as an independent accounting standard setter.