The International Accounting Standards Board (IASB) should work to simplify standards and ensure they are released more quickly, according to independent research
A reputation research study commissioned by the trustees of the IFRS Foundation identified several weaknesses in the standards-setter’s approach. Areas identified for further development were mainly around the complexity of its standards, the timeliness of its standard-setting process and the need to respond quickly in a changing world.
Especially long development and consultation phases were viewed as problematic, and almost half of interviewees do not believe that the Foundation has the balance right between quantity of due process and speed. Detractors raised what they see as a tendency to be too technical or conceptual, though many also cite the difficulty in balancing transparency with a fast pace. Suggestions to address this balance range from improving processes to focusing its efforts on simple, practical, and workable standards.
Respondents said they would also favour more opportunities to engage outside the consultation process through informal dialogue, training and events. There were also concerns that small companies and developing markets are at risk of being sidelined, and said more consideration should be given to the difficulties they experience in implementing standards.
The study was conducted earlier this year by Ebiquity, an independent research agency, which interviewed 50 senior stakeholders from around the world and also ran online surveys of members of the IFRS Foundation’s advisory bodies, as well as a separate survey of senior IASB staff.
The research found that the IFRS Foundation is perceived as being successful in achieving its public interest mission, and is highly rated for transparency, independence and professionalism.
The IFRS Foundation said the findings are generally in line with feedback received through other channels, and the organisation has already introduced some changes in the areas identified as warranting improvements.
Michel Prada, chairman of the IFRS Foundation trustees, said: ‘These findings are very encouraging, particularly given the size of the organisation compared to our global remit, and will help the trustees discharge our oversight responsibilities.
We will work with the board and staff to ensure that our future plans and priorities are informed by this feedback.’
Perceptions of the IFRS Foundation reputation research findings is here.
