EFRAG has warned against reducing the number of members sitting on the International Accounting Standards Board (IASB) and International Sustainability Standards Board (ISSB). It said both boards should be made up of at least 12 members, in its draft response to the IFRS Foundation's consultation on constitutional amendments.
The EU advisory body says allowing board sizes to vary between eight and 12 according to priorities and workload is “too broad”. It suggests the Trustees clarify and define the criteria for any change in board size.
It also wants Europe to keep its current allocation of three seats on both boards, with a distinction between seats for the EU and those for other European countries.
At least two seats on each board should go to the EU-based members, EFRAG argues, citing the economic significance of the bloc and the fact it provides a quarter of the IFRS Foundation’s funding.
EFRAG supports keeping the existing qualifications for board members. It also agrees with the proposed voting arrangements for boards with fewer than 12 members, and with the option of a shortened work plan. However, it opposes a change that would allow some members to serve terms of less than five years.
EU stakeholders can provide input on EFRAG’s draft comment letter until 7 November. The consultation on the IFRS constitution is open until 16 November.