The IAIS is generally supportive of the recommendations set out in the Report. However, the IAIS notes that the detail provided in parts of the Report is relatively limited in some cases and, as such, the arguments supporting the recommendations are not always sufficient for a clear view on those items to be determined.

 

The IAIS agrees that the focus of financial reporting standards should be on providing a faithful representation of an entity’s financial position and performance, and is supportive that the Report implicitly recognises the effective functioning of capital markets and global financial stability as consideration for the financial reporting framework.

 

The IAIS encourages the Trustees to provide further clarity on the role of prudential regulators within the overall strategy of the IFRS Foundation. As noted in IAIS's response to the IFRS Foundation Monitoring Board’s 'Consultative Report on the Review of the IFRS Foundation’s Governance', the IAIS believes that organisations such as the IAIS have a well-established and vested interest in ensuring the independence and proper governance of the IFRS Foundation. This role should go beyond simple cooperation on identifying the extent of adoption of IFRS but should include active participation in the governance arrangements of the IFRS Foundation through IAIS representation on the Monitoring Board.

Comment letter