The Accounting Standards Advisory Forum (ASAF) was established by the trustees of the IFRS Foundation, the oversight body of the IASB, after a public consultation that took place in November and December 2012. It is bound to have an effect on the development of international accounting standards for income taxes, though not immediately. The IASB announced in December 2012 that it did not plan to issue a discussion or research document on income taxes for three years, though it would take note, and encourage, any work done on the topic by other standard setters during this time.
Cooperation now
Previously, the IASB cooperated formally with other standard setters around the world through a memorandum of understanding (MoU) with each one.
The ASAF will replace this system with a single agreement to be signed by all ASAF members and include the regional standard-setting bodies that have been formed in recent years.
“The creation of the ASAF reflects two important changes in the global accounting standard setting landscape,” said Michel Prada, chairman of the IFRS Foundation’s trustees. “First, the significant growth in the use of IFRSs around the world has complicated the task of maintaining bilateral MoUs with multiple jurisdictions. Second, many parts of the world have established regional accounting standard-setting organisations and forums to offer advice and to discuss matters related to IFRSs.
“The ASAF is our response to these two developments. Its formation will replace multiple bilateral MoUs with a single forum based on an agreement signed by all members.
“Importantly, the ASAF is a complement to the IASB’s ongoing dialogue with the international standard-setting community in pursuit of its central mission to develop a global language for financial reporting.”
The ASAF will be chaired by the IASB with an initial membership from:
Africa
South African Financial Reporting Standards Council, supported by the Pan African Federation of Accountants (PAFA)
Asia-Oceania (including one at large)
Accounting Standards Board of Japan
Australian Accounting Standards Board
Chinese Accounting Standards Committee
Asia Oceania Standard Setters Group (AOSSG), represented by the Hong Kong Institute of Certified Public Accountants
Europe (including one at large)
· Accounting Standards Committee of Germany
· European Financial Reporting Advisory Group (EFRAG)
· Spanish Accounting and Auditing Institute
· UK Financial Reporting Council
The Americas
· Group of Latin American Standard Setters (GLASS)
· Canadian Accounting Standards Board
· US Financial Accounting Standards Board
The trustees selected the members after consulting national and regional standard setters, and other organisations, such as the European Commission, on the 25 nominations that were received for membership.
