1. Composition

• Balanced expertise from the perspective of preparers, users and auditors.
• Private sector, public sector and academia.

2. Criteria for Appointment

• Recognition of importance of standard setting and need for leadership thinking.
• An understanding of Part 12 of the Australian Securities and Investments Commission Act 2001 including the AASB's functions and powers, one of which is to contribute to the development of a single set of accounting standards for world-wide use.
• Ability to consider issues at detailed technical level.
• Relevant accounting knowledge and experience that may include academic and general management and business or public sector expertise.
• A collegiate style, acceptance of differing viewpoints, and ability to work to achieve consensus while maintaining the highest standards of accounting standard setting.
• Capacity to make the required time commitment.
• Output orientation and appreciation of public interest perspective in standard setting.
• Access to relevant technical support.

3. Appointment Process

• Nominations would normally be sourced by the FRC members. Advertising will be considered where appropriate.
• Input will be sought from the AASB Chairman.
• Nominations Committee to make an initial assessment of potential candidates and identify short-list.
• Prior to making a recommendation to the FRC for a particular appointment, the Nominations Committee should check references of short-listed candidates and consider interviews to ensure criteria for appointment are met.
• The appointment process will have regard to succession planning needs.

4. Performance Assessment

• Board members to undertake self evaluation of both own performance and that of the AASB.
• AASB Chairman to provide feedback to individual Board members and to facilitate peer assessment by Board members, against criteria agreed by the FRC in consultation with the AASB Chairman and Board members.
• FRC to oversight overall performance assessment by AASB Chairman.
• AASB Chairman to discuss performance of individual Board members with the Nominations Committee as appropriate.

5. Succession Planning

• AASB Chairman to periodically review Board composition, performance and expected retirements, identify succession planning needs and discuss these needs with FRC Nominations Committee.
• FRC Nominations Committee to maintain a schedule of eligible nominees who meet the criteria for appointment.