IFRS Foundation

Last updated
IFRS Foundation
International Financial Reporting Standards Foundation.
Founder Australia, Canada, France, Germany, Japan, Mexico, Netherlands, United Kingdom, and the United States (1973)
Founded atLondon
13-4164140 (TIN)
PurposeGlobal corporate reporting standards for the capital markets [1]
HeadquartersColumbus House 7 Westferry Circus, Canary Wharf, London, E14 4HD UK
Location
Coordinates 37°47′41″N122°23′57″W / 37.79472°N 122.39917°W / 37.79472; -122.39917
Chair of the trustees
 Erkki Liikanen
Managing director
Michel Madelain
Revenue£ 67.6 m
Disbursements£ 14.8 m (US GAAP)
Expenses£ 68.9 m
Staff369 total employees (2024)
Website www.ifrs.org
Formerly called
IASC Foundation
Use of IFRS Accounting Standards by jurisdiction Afghanistan, Albania, Angola, Anguilla, Antigua and Barbuda, Argentina, Armenia, Australia, Austria, Azerbaijan, Bahamas, Bahrain, Barbados, Bangladesh, Belarus, Belgium, Belize, Benin, Bermuda, Bhutan, Bolivia, Bosnia and Herzegovina, Botswana, Brazil, Brunei Darussalam, Bulgaria, Burkina Faso, Cambodia, Cameroon, Canada, Cayman Islands, Central African Republic, Chad, Chile, China, Colombia, Comoros, Costa Rica, Croatia, Cyprus, Czech Republic, Democratic Republic of Congo, Denmark, Dominica, Dominican Republic, Ecuador, Egypt, El Salvador, Equatorial Guinea, Estonia, Eswatini, Ethiopia, European Union, Fiji, Finland, France, Gabon, Gambia, Georgia, Germany, Ghana, Greece, Grenada, Guatemala, Guinea, Guinea-Bissau, Guyana, Honduras, Hong Kong, Hungary, Iceland, India, Indonesia, Iran, Iraq, Ireland, Israel, Italy, Ivory Coast, Jamaica, Japan, Jordan, Kazakhstan, Kenya, Kosovo, Kuwait, Kyrgyzstan, Latvia, Lesotho, Liberia, Liechtenstein, Lithuania, Luxembourg, Macau, North Macedonia, Madagascar, Malawi, Malaysia, Maldives, Mali, Malta, Mauritius, Mexico, Moldova, Mongolia, Montenegro, Montserrat, Morocco, Myanmar, Namibia, Nepal, Netherlands, New Zealand, Nicaragua, Niger, Nigeria, Norway, Oman, Pakistan, Palestine, Panama, Papua New Guinea, Paraguay, Peru, Philippines, Poland, Portugal, Qatar, Republic of the Congo, Romania, Russia, Rwanda, Saudi Arabia, Senegal, Serbia, Sierra Leone, Singapore, Slovakia, Slovenia, South Africa, South Korea, Spain, Sri Lanka, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Suriname, Sweden, Switzerland, Syria, Taiwan, Tanzania, Thailand, Timor-Leste, Togo, Trinidad and Tobago, Turkey, Uganda, Ukraine, United Arab Emirates, United Kingdom, United States, Uruguay, Uzbekistan, Venezuela, Vietnam, Yemen, Zambia, Zimbabwe

The International Financial Reporting Standards Foundation or IFRS Foundation (sometimes IFRSF) is a nonprofit organization [a] that sets corporate reporting standards for the capital markets globally founded on the belief that better information from companies leads to better investment decisions. Its main objectives include the development and promotion in the public interest a single set of high quality, understandable, enforceable and globally accepted International Financial Reporting Standards (IFRS Standards), through the International Accounting Standards Board (IASB) for accounting standards and the International Sustainability Standards Board (ISSB) for sustainability-related disclosure standards. [2]

Contents

History

In 2001, the International Accounting Standards Committee (IASC, established 1973) reformed itself under a new dual structure consisting mainly of an independent standard-setting body, the International Accounting Standards Board, and a foundation that appoints and funds the IASB, initially named the IASC Foundation. [3] [4] The IASB assumed accounting standard-setting responsibilities from the IASC on 1 March 2001. The IASC Foundation changed its name to IFRS Foundation on 1 July 2010. [2]

During the first twenty years of activity, the IASB was the organization's dominant standard-setting body. [5] In 2021, the foundation created a second standard-setting board, the International Sustainability Standards Board. [6] [7] [8] [9]

Chronology of major milestones in the history of the IFRS Foundation
YearEventDescription
1973IASC foundedThe International Accounting Standards Committee (IASC) is established by agreement among accountancy bodies from ten countries (Australia, Canada, France, Germany, Japan, Mexico, Netherlands, UK, Ireland, USA) to harmonize accounting standards.
1988 IOSCO joinsThe International Organization of Securities Commissions (IOSCO) joins the IASC and begins cooperating to create a core set of international standards.
1997Strategic reviewThe IASC resolves to undertake a comprehensive restructuring to enable closer cooperation with securities regulators and make the standards enforceable worldwide.
2000IFRS Foundation launchedThe IFRS Foundation (initially IASC Foundation) is established to replace the IASC and create a new governance structure. Trustees take oversight, and the IASB is established.
2001IASB foundedThe International Accounting Standards Board (IASB) assumes responsibility for developing and publishing International Financial Reporting Standards (IFRS®).
2002"Norwalk Agreement"The IASB and the US Financial Accounting Standards Board (FASB) sign the Norwalk Agreement to converge their respective accounting standards.
2005 EU mandateThe European Union (EU) mandates the use of IFRS for the consolidated financial statements of all listed companies. This is a crucial step for the global spread of IFRS.
2009Monitoring Board establishedThe Monitoring Board is established to provide a formal link between the trustees and public authorities (capital market regulators) and to strengthen public accountability.
2010Name changeThe IASC Foundation is officially renamed the IFRS Foundation.
2015 IFRS 9, 15, 16Completion of major IFRS projects on financial instruments (IFRS 9), revenue from contracts with customers (IFRS 15), and Leases (IFRS 16), significantly changing global accounting practice.
2021ISSB foundedThe IFRS Foundation establishes the International Sustainability Standards Board (ISSB) at COP26 to develop global standards for sustainability disclosures (IFRS Sustainability Disclosure Standards).
2023S-Standards publishedThe ISSB publishes its first two standards: IFRS S1 (General Requirements for Disclosure of Sustainability-related Financial Information) and IFRS S2 (Climate-related Disclosures).

Governance structure

The IFRS Foundation has a three-tier governance structure that strengthens the ability to carry out their mission. The organization states that its mission is to develop high-quality standards that bring transparency, accountability and efficiency to capital markets around the world, and that their work serves the public interest by fostering trust, growth and long-term financial stability in the global economy. [10] [1]

The foundation serves the public interest through integrity, transparency, and accountability, acts as a unified entity, shapes the future of financial reporting for a sustainable economy, and fosters a supportive environment for all colleagues. [1]

Monitoring Board

The Monitoring Board was established by the IFRS Foundation Trustees in New Delhi, India, in January 2009. [11] The decision was made to enhance the organization's public accountability. [11] The foundation is governed by a group of 22 trustees, [b] [12] themselves under the oversight of the Monitoring Board. [c] Its aim is 'providing a formal link between the trustees and public authorities' in order to enhance the public accountability of the foundation. [d] [13] [14]

The Monitoring Board consists of the following entities:

Trustees

The governance of the IFRS Foundation is primarily managed by the trustees, who may appoint other governing organs and are formally linked to public authorities via the Monitoring Board, with minor constitutional variations allowed by a 75% trustee majority. [17] The trustees' responsibilities [18] include governance, strategy and funding; due process oversight; and IASB, ISSB, IFRS Interpretations Committee and advisory body [e] [19] [20] appointments to ensure the independence of the Board Members when adopting the standards. [21] Trustees must offer balanced professional backgrounds (regulators, investors, auditors, preparers, users, academics, public officials) and share a global interest in transparent corporate reporting. [22] The foundation is obligated to conduct a comprehensive review of its strategy, effectiveness, and governance structure—including the geographical distribution of the trustees—at least every five years, with all proposals published for public comment. [22]

As of 2024, the trustees [f] [12] include:

IFRS Foundation Trustee chairs, past and present:

Independent standard-setting Boards

The IFRS Foundation aims to develop high-quality, globally accepted financial and sustainability standards (via the IASB and ISSB), promote their rigorous worldwide application, address diverse entity needs, and facilitate convergence with national standards. [17] IFRS standards primarily serve the needs of investors and capital market participants, but the ISSB ensures its sustainability disclosure standards are interoperable with other reporting initiatives to address the broader information needs of various stakeholders. [17]

Accounting

The IASB is an independent group of experts with an appropriate mix of recent practical experience and broad geographical diversity, as required by the foundation's constitution. [17]

IASB members are responsible for the development and publication of accounting standards, including the IFRS for SMEs Accounting Standard. [27] [28] [29] The IASB works with the IFRS Interpretations Committee to support consistent application of the standards. [30]

The accounting standards are required for use by more than 140 jurisdictions. [31] The IASB’s work includes continually developing and improving the standards. [2]

Sustainability

Responding to the need for consistent and comparable sustainability information to inform economic and investment decisions, in 2021 the IFRS Foundation created the International Sustainability Standards Board (ISSB), [32] which operates alongside the IASB. The ISSB develops Sustainability Disclosure Standards, designed to deliver a truly global baseline of sustainability disclosures to inform capital markets. [2] [g]

The ISSB builds on the work of market-led investor-focused reporting initiatives, including the Climate Disclosure Standards Board (CDSB), the Task Force on Climate-related Financial Disclosures (TCFD), the Value Reporting Foundation’s Integrated Reporting Framework and industry-based SASB Standards. [7]

The ISSB issued its inaugural Standards, IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2 Climate-related Disclosures, in 2023. Jurisdictions around the world are determining how to adopt or use the Standards. [33] [34] [35]

Digital taxonomies

The IFRS digital taxonomies facilitate the reporting of information prepared in accordance with IFRS standards in a computer-readable, structured data format. [33] [36] They consist of elements that can be used to tag information in financial reports prepared using the standards. Tagging makes information computer-readable and, therefore, more accessible to investors and other users of electronic company financial reports. The eXtensible Business Reporting Language (XBRL) is used to represent and deliver IFRS Taxonomy [37] content. The digital taxonomies include the IFRS Accounting Taxonomy, the IFRS Sustainability Disclosure Taxonomy and the SASB Standards Taxonomy.

Organisation

The Columbus Building at 7 Westferry Circus in Canary Wharf has been home to the IFRS Foundation since August 2018. London MMB >>0F8 1 Westferry Circus.jpg
The Columbus Building at 7 Westferry Circus in Canary Wharf has been home to the IFRS Foundation since August 2018.
The building at 30 Cannon Street was the previous head office of the IFRS Foundation and IASB, from 2001 to 2018. 30 Cannon Street, City of London 10 August 2014.jpg
The building at 30 Cannon Street was the previous head office of the IFRS Foundation and IASB, from 2001 to 2018.

The IFRS Foundation receives contributed revenue made up of voluntary contributions from jurisdictions, ISSB seed funding, philanthropic grants and contributions from companies (61%). [h] It receives earned revenue from intellectual property licensing, publications, subscriptions, membership fees, education programmes and conferences (39%). [39] It maintains a multi-location model with offices in London (main base for IASB and central staff), Montreal (ISSB hub for the Americas), Frankfurt (ISSB seat and hub for EMEA), Beijing (ISSB hub for emerging economies and Asia engagement), San Francisco (ISSB technical support), and Tokyo (support for both IASB and ISSB in Asia-Oceania), to support its global mission. [40]

IFRS Foundation (IASB) funding contributions 2024
Contributor/jurisdictionAmount (GBP £)Percentage (%)
Canada 7,982,21317.75%
Germany 5,657,71912.58%
United Kingdom 4,553,59510.12%
China 4,273,5289.50%
Japan 3,447,8577.67%
International Accounting Firms (Big Four Collective)3,094,5706.88%
European Union (European Commission)2,588,5555.76%
United States 2,455,0535.46%
Netherlands 1,988,5204.42%
All other jurisdictions8,935,36319.86%
Total (approx.)44,976,973100.00%

As of 2024, its managing director is Michel Madelain. [41] He leads the foundation’s strategic planning, governance, funding and expenditure activities and day-to-day operations. He also supports the work of the trustees and both boards.

Chronology of major amendments to the IFRS Foundation Constitution
DateVersion/reviewKey change summary
March 2000Original constitution approvedFirst approval
24 May 2000Constitution effectiveTrustees took office
6 Feb 2001IASC Foundation formedPart C deleted
5 March 2002RevisionIFRS Interpretations Committee created
8 July 2002AmendmentOrganizational changes
1 July 2005First five-yearly reviewFirst scheduled review
31 Oct 2007AmendmentMinor amendments
1 Feb 2009Second five-yearly review (part 1)Public accountability & IASB size
1 March 2010Second five-yearly Rrview (conclusion)Name change to IFRS Foundation
23 Jan 2013AmendmentSeparation of IASB chair/executive director roles
Oct 2016Structure & effectiveness reviewStructure and effectiveness amendments
1 Dec 2018Narrow-Scope AmendmentExtended trustee terms (max. 9 years)
August 2020Due Process AmendmentAdvisory Council: strategic only
Oct 2021Sustainability Reporting AmendmentEstablished the ISSB

See also

Notes

  1. ↑ The IFRS Foundation under the General Corporation Law of the State of Delaware, USA operates in England and Wales as an overseas company (Company number: FC023235) with its principal office at Columbus Building, London.
  2. ↑ Standard trustees serve a three-year term, renewable once (six-year maximum). A chair appointed from among the trustees serves a three-year term, renewable twice (nine-year maximum in that role).
  3. ↑ The principal responsibilities of the IFRSF Monitoring Board are to oversee the trustees' discharge of duties, approve the appointment of trustees, review the funding and budget arrangements, and review the standard-setting due process of both the IASB and ISSB, while also providing input on chair selection and addressing matters of broad public interest. The IFRSF Monitoring Board confers with the trustees and the IASB/ISSB on six main areas: IASB/ISSB oversight, due process, agenda setting, resource adequacy, investor protection, and funding, while also having the power to refer new accounting issues to the IASB for timely consideration.
  4. ↑ The trustees and the IFRSF Monitoring Board maintain communication through annual written reports, regular formal meetings, and ad hoc discussions concerning the work, standards, and regulatory environment of the IFRS Foundation, IASB, and ISSB.
  5. ↑ The IFRS Advisory Council (Advisory Council shall comprise 30 or more members and provides broad strategic advice to the trustees, the IASB and the ISSB and meets at least twice a year) and Accounting Standards Advisory Forum (ASAF bringing together global National Standard-setters to streamline technical input and ensure the development of globally accepted, high-quality accounting standards in the public interest and meets four times a year).
  6. ↑ Six trustees appointed from the Asia-Oceania region; six appointed from Europe, six appointed from the Americas, one appointed from Africa and three appointed from any area, subject to maintaining overall geographical balance
  7. ↑ To achieve its objective of meeting the information needs of global capital markets, the IFRS Foundation engages with a wide range of stakeholders—including Investors, Policy Makers/Regulators, Accounting Professionals/Auditors, Academia, Companies, Media, Multilateral Institutions, Civil Society, Funding Providers, Standard-setters, and Customers—by tailoring its response (such as forums, regular meetings, educational materials, and consultations) to their specific information and contribution needs.
  8. ↑ The majority of the IFRS Foundation's funding for the year ended 31 December 2024 comes from a diverse international base of contributing jurisdictions and organisations, with Canada (£7,982,213), Germany (£5,657,719), and Japan (£3,447,857) being the largest country-based funders.

References

  1. 1 2 3 IFRS Foundation. About the IFRS Foundation and the IASB. Retrieved June 20, 2024.
  2. 1 2 3 4 "IFRS Foundation Constitution" (PDF). IFRS Foundation. 2018. Retrieved 21 November 2025.
  3. ↑ "International Accounting Standards Committee (IASC)". IAS Plus. Deloitte. 2025. Retrieved 21 November 2025.
  4. ↑ accountancy (8 February 2025). "International Accounting Standards Board (IASB) and International Accounting Standards Committee (IASC): Roles, History, and Impact". Auditing Accounting. Retrieved 21 November 2025.
  5. ↑ Jane Fuller (June 2021). "Twenty years of IFRS Standards". AB magazine. ACCA Global. Retrieved 21 November 2025.
  6. ↑ "IFRS Foundation announces International Sustainability Standards Board, consolidation with CDSB and VRF, and publication of prototype disclosure requirements". IFRS Foundation. IFRS Foundation. 3 November 2021. Retrieved 21 November 2025.
  7. 1 2 "International Sustainability Standards Board". IFRS Foundation. IFRS Foundation. 2025. Retrieved 21 November 2025.
  8. ↑ "IFRS Foundation establishes the International Sustainability Standards Board" (PDF). IFRS Developments (PDF). EY (Ernst & Young). November 2021. Retrieved 21 November 2025.
  9. ↑ "INTERNATIONAL SUSTAINABILITY STANDARDS BOARD (ISSB) FORMED AND PROTOTYPE SUSTAINABILITY STANDARDS RELEASED" (PDF). BDO Global. BDO Global. 3 November 2021. Retrieved 21 November 2025.
  10. ↑ "Memorandum of Understanding signed by the Basel Committee on Banking Supervision and the IFRS Foundation". Bank for International Settlements (BIS). 5 September 2017. Retrieved 21 November 2025.
  11. 1 2 "The Monitoring Board". International Organization of Securities Commissions (IOSCO). IOSCO. Retrieved 7 December 2025.
  12. 1 2 "IFRS Foundation Trustees". IFRS Foundation. Retrieved 21 November 2025.
  13. ↑ "IFRS Foundation Monitoring Board". IFRS Foundation. Retrieved 21 November 2025.
  14. ↑ "Monitoring Board". IAS Plus. Deloitte. 2025. Retrieved 21 November 2025.
  15. ↑ "Charter of the IFRSF Monitoring Board 2023" (PDF). IOSCO (International Organization of Securities Commissions). Retrieved 26 November 2025.
  16. ↑ "Memorandum of Understanding to Strengthen the Institutional Framework of the International Financial Reporting Standards Foundation" (PDF). IFRS Foundation. Retrieved 26 November 2025.
  17. 1 2 3 4 IFRS Foundation, 2021. IFRS Foundation Constitution. Retrieved November 29, 2024.
  18. ↑ IFRS Foundation.Trustee responsibilities Archived 2018-06-20 at the Wayback Machine . Retrieved June 20, 2018.
  19. ↑ "Accounting Standards Advisory Forum: Terms of Reference" (PDF). IFRS Foundation. 31 March 2022. Retrieved 26 November 2025.
  20. ↑ "Accounting Standards Advisory Forum (ASAF)". IFRS Foundation. Retrieved 26 November 2025.
  21. ↑ "Monitoring Board of the International Financial Reporting Standards Foundation". International Organization of Securities Commissions (IOSCO). IOSCO. Retrieved 21 November 2025.
  22. 1 2 "IFRS Foundation Constitution" (PDF). IFRS Foundation. 3 November 2021. p. 7–8. Retrieved 26 November 2025.
  23. ↑ IFRS Foundation. Trustee Chairman. Retrieved March 14, 2019.
  24. ↑ Archived 2018-04-26 at the Wayback Machine
  25. ↑
  26. ↑ "Statement on the death of Paul Volcker, inaugural Chairman of the IFRS Foundation trustees". IFRS Foundation. 10 December 2019.
  27. ↑ "The IFRS for SMEs Accounting Standard". IFRS Foundation. IFRS Foundation. 2025. Retrieved 21 November 2025.
  28. ↑ "IFRS for SMEs® updated". KPMG International. KPMG. 27 February 2025. Retrieved 21 November 2025.
  29. ↑ "The Role of the IFRS Foundation, Monitoring Board, IASB, IFRS Advisory and the IFRS Interpretations Committee" (PDF). CPA Ireland. CPA Ireland. December 2013. Retrieved 21 November 2025.
  30. ↑ "IFRS Interpretations Committee". IFRS Foundation. IFRS Foundation. 2025. Retrieved 21 November 2025.
  31. ↑ IFRS Foundation. Use of IFRS Accounting Standards around the world. Retrieved November 29, 2024.
  32. ↑ IFRS Foundation. IFRS Foundation announces ISSB. Retrieved November 29, 2024.
  33. 1 2 "ISSB issues inaugural global sustainability disclosure standards". IFRS Foundation. IFRS Foundation. 26 June 2023. Retrieved 21 November 2025.
  34. ↑ "ISSB issues IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2 Climate" (PDF). BDO Global. BDO. June 2023. Retrieved 21 November 2025.
  35. ↑ "ISSB issues inaugural IFRS sustainability disclosure standards" (PDF). EY Global. EY. 26 June 2023. Retrieved 21 November 2025.
  36. ↑ "Digital financial reporting". IFRS Foundation. IFRS Foundation. 2025. Retrieved 21 November 2025.
  37. ↑ IFRS Foundation. Digital Financial Reporting. Retrieved November 29, 2024.
  38. ↑ "The IFRS Foundation has moved". IFRS Foundation. 6 August 2018.
  39. ↑ IFRS Foundation, Financing. Retrieved April 26, 2018.
  40. ↑ "IFRS Foundation Annual Report 2024" (PDF). IFRS Foundation. 2024. Retrieved 21 November 2025.
  41. ↑ IFRS Foundation. Michel Madelain appointed as MD. Retrieved September 13, 2024.
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