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In a combined statement the European Commission, the Financial Services Agency of Japan, IOSCO and the US SEC proposed changes to strengthen the institutional framework of the International Accounting Standards Committee (IASC) Foundation.
"We have a common interest of ensuring continuing user confidence in the institutions responsible for the development of global accounting standards”, the organisations declared. “A natural step would be to establish a means of accountability to those governmental authorities charged with protecting investors and regulating capital markets."
The IASC Foundation Trustees have scheduled a review of the Foundation’s Constitution to begin in 2008. This should also be utilized to strengthen the Foundation’s governance framework. Central to this effort is the establishment of a new monitoring body within the governance structure of the IASC Foundation.
One key objective is to have the monitoring body meet regularly with IASC Foundation Trustees to discuss, review and comment on the IASB’s work program.
The monitoring body would participate in the selection of Trustees, would be responsible for the final approval of Trustee nominees and would also have the opportunity to review the Trustees’ procedures for overseeing the standard-setting process and ensuring the IASB’s proper funding.