ASCG rotates off ASAF and becomes a member of the IFRS Advisory Council instead

The Trustees of the IFRS Foundation today announced the membership of the Accounting Standards Advisory Forum (ASAF) for the third term of office. As in the two previous rounds, three seats were available for European standard-setters, with EFRAG being practically set as a regional representative in a fourth seat.

The ASCG was not reappointed in this cycle and will cede its seat to the British standard-setter at the December meeting, who will now become a member of the Forum again after a three-year break. In addition to the Germans, the Australian standard-setter was replaced by the Korean standard-setter, who made it for the first time after two unsuccessful candidacies. The IASB press release can be found here.

The ASCG has been a member of ASAF without interruption since its inception in 2013 and has thus had the longest retention period of all national standard-setters from Europe. Since the total number and the regional distribution of the seats were maintained unchanged, it was to be expected in view of a strong applicant field that the ASCG would have to make place for a competitor – like the British standard-setter did three years ago for the French one.

Andreas Barckow, President of the ASCG, commented on the rotation as follows: “Of course I respect the decision of the Trustees. In my opinion, a rotation procedure is the fairest mechanism to allow all qualified applicants to have their say at some point. Even if it was to be assumed that we would not have a high probability of being reappointed, we threw the hat again into the ring for the ASCG – this time without success. I see it as a sportsman: Surely, the rotating off is not evidence of lacking reputation of the ASCG. But good technical work is also done by others, and they must also be able to be listened to.

What is important to me with regard to our German landscape is that the German voice at the IASB will not remain unheard in the future with this decision. Firstly, we are, of course, free to attend the ASAF meetings as observers and to continue discussions with our contacts there; secondly, when we leave ASAF, we will automatically take over the seat on the IFRS Advisory Council from the British, which they have held for the last three years. Thirdly, I would remind you of our recent appointment to the newly created Management Commentary Consultative Group, which meets every three months. And last but not least, London is not Buenos Aires or Auckland, but just an hour’s flight away. We are close to it and will continue to make the German voice heard.”