Choice of the right chairperson is necessary to give the task force credibility and an unbiased perspective. This person must not only be respected by other mem- bers of the organization, and open to innovative ideas, but also a facilitator able to steer the IFRS project through straits and headwinds.
Regarding qualifications, the same goes for the IFRS task force’s membership.
With regard to number of members, in my experience a high single-digit number
is best. Three to five people are not representative enough as a group; and more than ten soon become a small parliament. At the same time, for the task force’s role to be effective, several pitfalls should be avoided. For example:
● The chairperson must guide but not dominate the meetings, and
● The meetings should not be ‘played’ to gain favours from ‘this’ or ‘that’ cor- porate officer.
The services of a good secretary are critical to the success of the task force. His or her duties must include setting up meetings, establishing agendas, writing the minutes, assuring staff work completion, documenting task force results, and more.
The chairperson must see to it that all task force members feel free to speak their mind. This is the only way to provide a corporate-wide perspective, and an excellent blend of business knowledge and clout. On the other hand, the chair- person and task force members must be free to check how well the IFRS project manager performs his or her duties.
● This can be done effectively through regular, and frequent person-to-per- son meetings
● It is unwise to lose time waiting for the more sparsely timed design reviews, where critiques made about the project have a wider echo.
Moreover, members of the task force can take the initiative to organize IFRS information meetings, aimed at widening the cross-section of participants and spurring innovative and creative thinking. This policy assures a wider-ranging view of corporate functions, and gives the task force clout to make decisions and pursue roll-out and change-over issues.
The approach outlined in this section evidently requires time from busy execu- tives. Hence the need that the task force is run efficiently. Furthermore, persons with experience in IFRS changeover suggest that an objective outsider’s view- point would benefit the project.
● A knowledgeable third party can bring applications know-how the com- pany lacks, and
● An independently minded person can help task force members to ensure the project operates effectively.
Also, the IFRS task force members should have the right, on a periodic basis, to bring a designated manager or professional of their department to attend the
meetings – though only the task force members should be allowed to vote in the course of such meetings. This policy:
● Permits managers with detailed understanding of specific issues to express opinions relevant to their area of expertise, and
● Spreads accountability and responsibility for task force activities and IFRS project progress wider within the organization.
Considering the importance of the IFRS task force to the company, the chief executive officer should review and make known his approval of the most important decisions. Moreover, the members should be appointed by the chief executive with the board’s consent, while the secretary is chosen and appointed by the chairperson.
In order to get the best possible results, the task force should utilize effective meeting and communications procedures and, as already mentioned, be pro- vided with staff support to operate successfully. Strict agenda and meeting pro- cedures are needed to assure effective use of membership time and effort, as well as to retain participation.
● It is advisable that the agenda is limited to only those items/issues that trulyqualify for task force deliberation.
Such items are of different kinds: for example, issues relating to the company’s accounting culture as well as policies, and what can be termed technically strate- gic issues. Another class is issues with sufficient impact on financial reporting to require senior management involvement and approval.
● Prior to each meeting, the items to be discussed should be separated into information-only and action items/issues.
Information-only items are those that provide members of the task force with insight and knowledge. As such, they should be limited to those that are mean- ingful. Action itemsare those for task force decision. For them, the advice is that every attempt should be made to come to a resolution during the meeting.
● Each task force member should have the right to introduce and present agenda items.
Full participation by all members of the task force in structuring the agenda pro- vides the mechanism for major issues to be brought forward from persons with the salt of the earth. It also assures active, ongoing participation and interest of the other members, who might otherwise feel that the meeting is not worth their time.
It is also most important that the agenda is finalized well ahead of the meeting.
For instance, two weeks prior to a monthly meeting. This will give members time to come prepared for the discussion. The agenda should include items proposed by task force members, but it should be finalized by the chairperson and circu- lated by the secretary.
Experience with important projects teaches that any research and analysis on agenda issues should be completed and circulated to members at the same time as the agenda, or shortly thereafter. This ensures that task force members are pre- pared to discuss issues – not just listen to ‘show and tell’ presentations. It also allows members to discuss issues with their assistants prior to meetings.
It is my experience that the analysis and research provided to task force mem- bers should be done on a competent staff work basis and it should be complete.
Patchy jobs done while running to the airport to catch a plane are not admissi- ble. If this analysis includes contradictory opinions, it may have to be reviewed by the secretary to ensure it meets fair presentation criteria. The criteria to char- acterize all analysis and research efforts include:
● Comprehensive issue definition
● Sound background, both business and technical
● Description of alternatives for resolution
● Definition of factors with which to evaluate alternatives
● Cost/benefit and risk evaluation analysis for each alternative, and
● Definition of decisions which the task force is being asked to make.
Effective presentation of research and analysis results ensures better use of mem- bership time, and enhances the odds that they continue to participate actively.
Moreover, the chairperson should consider holding the task force meetings off- site, especially when the agenda requires a full day to complete. This avoids dis- tractions and helps in creating an atmosphere that facilitates open discussion on the different issues, and better decisions.
Finally, it is important to bring to the reader’s attention that innovation in accounting standards is not going to end with the current versions of IFRS, IAS 32, IAS 39, and the other component of the new standards. Therefore, as men- tioned in the Introduction, after the IFRS project is successfully completed, it is wise to keep a nucleus research and development laboratory, oriented to accounting issues and standards evolution. Chapters 1 and 2 have already explained why the research effort is indivisible from the mainstream of activities of the modern enterprise.