IFRS Website:

Who we are

About us
The IFRS Foundation is a not-for-profit, public interest organisation established to
develop high-quality, understandable, enforceable and globally accepted accounting
and sustainability disclosure standards—IFRS Standards—and to promote and
facilitate adoption of the standards.

Our Standards are developed by our two standard-setting boards, the International

Accounting Standards Board (IASB) and the newly created International
Sustainability Standards Board (ISSB). The IASB sets IFRS Accounting Standards
and the ISSB sets IFRS Sustainability Disclosure Standards. 

IFRS Accounting Standards set out how a company prepares its financial

statements. IFRS Sustainability Disclosure Standards set out how a company
discloses information about sustainability-related factors that may help or hinder a
company in creating value.

The two boards will work closely to ensure their Standards complement each other

to provide investors with transparent and reliable information about a company’s
financial position and performance, as well as information about sustainability factors
that could create or erode its enterprise value in the short, medium and long term.

Find out more about the structure of the IFRS Foundation and our consultative

bodies.

Our mission statement

Our mission is to develop IFRS Standards that bring transparency, accountability
and efficiency to financial markets around the world. Our work serves the public
interest by fostering trust, growth and long-term financial stability in the global
economy 

 IFRS Standards bring transparency by enhancing the international comparability and

quality of financial information, enabling investors and other market participants to
make informed economic decisions.
 IFRS Standards strengthen accountability by reducing the information gap between
the providers of capital and the people to whom they have entrusted their money.
Our Standards provide information needed to hold management to account. As a
source of globally comparable information, IFRS Standards are also of
vital importance to regulators around the world.
 IFRS Standards contribute to economic efficiency by helping investors to identify
opportunities and risks across the world, thus improving capital allocation. Use of a
 single, trusted accounting language lowers the cost of capital and reduces
international reporting costs for businesses.

IFRS Accounting Standards are currently required in more than 140 jurisdictions and
permitted in many more. Find out more about the use of IFRS Standards around the
world here.

The IFRS Foundation Annual Report

The IFRS Foundation publishes an annual report on its activities, including audited
financial statements.

The 2021 report reflects on the transformative year for the Foundation and includes
letters from the new Chair of the International Accounting Standards Board (IASB)
Andreas Barckow; Chair of the IFRS Foundation Trustees Erkki Liikanen; and Chair
of the IFRS Foundation Monitoring Board Jean-Paul Servais.

The report also discusses the steps taken to form the new standard-setting
board―the International Sustainability Standards Board (ISSB)—which was
announced at the COP26 climate change conference in Glasgow in November 2021;
publication of the Foundation’s revised Constitution, which was updated after broad
consultation to accommodate the new board; a discussion about the IASB’s Third
Agenda Consultation; as well as other case studies on some of the year’s
achievements.

Our annual reports can be found below, in PDF format and as inline XBRL and
XBRL files.

(HERE 2021 Annual Report)

IFRS Foundation funding

The IFRS Foundation (Foundation) had an annual income of £28.8 million in 2021.
Income comes from three main sources: voluntary contributions from jurisdictions
around the world, voluntary contributions and license fees from international
accounting firms and self-generated income from the sale of subscription services,
publications and licensing of our intellectual property.

Our structure
The IFRS Foundation's three-tier structure
The IFRS Foundation has a three-tier governance structure, based on two
independent standard-setting boards of experts (International Accounting Standards
Board and International Sustainability Standards Board), governed and overseen by
Trustees from around the world (IFRS Foundation Trustees) who in turn are
accountable to a monitoring board of public authorities (IFRS Foundation Monitoring
Board).

The IFRS Advisory Council provides advice and counsel to the Trustees and the
boards, whilst the boards also consult extensively with a range of other standing
advisory bodies and consultative groups.

How we set IFRS® Standards

The IFRS Foundation has a highly regarded, inclusive and transparent due process
for developing IFRS Standards. The IFRS Foundation’s due process is outlined in
its Constitution and in further detail in the Due Process Handbook.

The due process enables stakeholders all over the world to contribute to and
scrutinise the standard-setting, helping us ensure the best thinking worldwide
informs the development of the requirements.

The due process is essential both for developing high-quality IFRS Standards and
for ensuring that stakeholders can be confident that all relevant views have been
considered when the Standards are developed. The process builds trust, legitimacy
and global acceptance of the Standards.

Three underlying principles make our due process robust: transparency, full and fair
consultation, and accountability.

The Trustees, who are responsible for the governance of the IFRS Foundation, are
also responsible for ensuring that the International Accounting Standards Board, the
IFRS Interpretations Committee and the International Sustainability Standards Board
follow the due process. The Trustees carry out this responsibility via their Due
Process Oversight Committee (DPOC).

All IFRS due-process documents are posted online. The full process is described in

detail in our Due Process Handbook.

The steps in the IASB's standard-setting process are outlined below. The DPOC has
acknowledged that the ISSB’s due process will develop over time as the ISSB
begins operating and its structures and processes are put in place and mature, and
that the Due Process Handbook will be updated in the future to reflect those
structures and processes.

Steps in the IASB standard-setting process

Agenda consultation
Every five years, the IASB conducts a comprehensive review and consultation to
define international standard-setting priorities and develop its project work plan.

The IASB can also add topics to its work plan if necessary between agenda
consultations. This can include topics following post-implementation reviews of
Standards; the IFRS Interpretations Committee may also request the IASB review an
issue.

Research programme
We begin most projects with research—explore the issues, identify possible
solutions and decide whether standard-setting is required. Often, we set out our
ideas in a discussion paper and seek public comment.

If we find sufficient evidence that an accounting problem exists, the problem is

sufficiently important to warrant changing an Accounting Standard or issuing a new
one and a practical solution can be found, we begin standard-setting.

Post-implementation Reviews

After a new Accounting Standard has been in use for a few years, the IASB carries
out research through a post-implementation review to assess whether the Standard
is achieving its objective and, if not, whether any amendments should be considered.
As a result of the post-implementation review, the IASB may start a new research
project. Find out more about PIRs here.

Standard-setting programme
If the IASB decides to amend an Accounting Standard or issue a new one, we
generally review the research, including comments on the discussion paper, and
propose amendments or Accounting Standards to resolve issues identified through
research and consultation.

Proposals for a new Accounting Standard or an amendment to an Accounting

Standard are published in an exposure draft for public consultation. To gather
additional evidence, members of the IASB and IFRS Foundation technical staff
consult with a range of stakeholders from all over the world.
The IASB analyses feedback and refines proposals before the new Accounting
Standard, or an amendment to an Accounting Standard, is issued. 

Maintenance programme
Our work doesn’t stop once an Accounting Standard is issued. We also support
consistent application of the Accounting Standards and we make sure we maintain
them.

This process includes consulting on the implementation of a new or amended

Accounting Standard to identify any implementation or application problems that may
need to be addressed. If issues arise, the IFRS Interpretations Committee may
decide to create an IFRIC Interpretation of the Accounting Standard or recommend a
narrow-scope amendment. Such amendments follow the IASB's normal due process.

IFRS Foundation Monitoring Board

IFRS Foundation Monitoring Board (Monitoring Board)
The Monitoring Board was created in January 2009 with the aim of 'providing a
formal link between the Trustees and public authorities' in order to enhance the
public accountability of the IFRS Foundation.

The Monitoring Board's main responsibilities are to ensure that the Trustees continue
to discharge their duties as defined by the IFRS Foundation Constitution, as well as
approving the appointment or reappointment of Trustees. The Monitoring Board
meets the Trustees at least once a year, or more often if appropriate

The Monitoring Board consists of capital markets authorities responsible for setting
the form and content of financial reporting. Through the Monitoring Board, securities
regulators that allow or require the use of IFRS in their jurisdictions will be able to
more effectively carry out their mandates regarding investor protection, market
integrity, and capital formation.

The Monitoring Board carried out an independent review of the governance

framework of the Monitoring Board and the IFRS Foundation in 2010-2011. The
governance review allowed the Monitoring Board to review, inter alia, its own
structure, whether it provides appropriate representation for relevant authorities and
whether the Foundation’s current governance structure functions effectively.

The Monitoring Board published the results of its Governance review in February
2012, and identified a number of enhancements to the governance framework and
included an action plan for their implementation. The Monitoring Board decided to
expand its membership to include additional authorities, primarily from major
emerging markets (a maximum of four) and also to establish a mechanism to
allocate two rotating seats in consultation with IOSCO. The Monitoring Board also
introduced a periodic evaluation and assessments process for existing members
every three years, beginning in 2013, against specified criteria for membership.

The Monitoring Board developed the IFRS Foundation Monitoring Board work plan
and intends to update the plan periodically. The latest one can be found in the
Resources section.

More information about the Monitoring Board, including meetings, can be found on
the IOSCO website.

International Accounting Standards

Board

About the International Accounting Standards Board

(IASB)
The IASB is an independent group of experts with an appropriate mix of recent
practical experience in setting accounting standards, in preparing, auditing, or using
financial reports, and in accounting education. Broad geographical diversity is also
required. The IFRS Foundation Constitution outlines the full criteria for the
composition of the IASB, and the geographical allocation can be seen on the
individual profiles.

IASB members are responsible for the development and publication of IFRS
Accounting Standards, including the IFRS for SMEs Accounting Standard. The IASB
is also responsible for approving Interpretations of IFRS Accounting Standards as
developed by the IFRS Interpretations Committee (formerly IFRIC).

Members are appointed by the Trustees of the IFRS Foundation through an open

and rigorous process that includes advertising vacancies and consulting relevant
organisations.

Why global accounting standards?

The G20 and other major international organisations, as well as very many
governments, business associations, investors and members of the worldwide
accountancy profession, support the goal of a single set of high-quality global
accounting standards.

Why is this the case?

The World Bank has been a long-term supporter of work to develop a single set of
high-quality global accounting standards.

World Bank, 2017

[The FSB] reiterated its support for...a single set of high-quality global accounting
standards.

FSB declaration, 2015

We support continuing work to achieve convergence to a single set of high-quality

accounting standards.

G20 leaders' declaration, 2012

Global accounting standards for global markets

Modern economies rely on cross-border transactions and the free flow of
international capital. More than a third of all financial transactions occur across
borders, and that number is expected to grow.

Investors seek diversification and investment opportunities across the world, while
companies raise capital, undertake transactions or have international operations and
subsidiaries in multiple countries.

In the past, such cross-border activities were complicated by different countries

maintaining their own sets of national accounting standards. This patchwork of
accounting requirements often added cost, complexity and ultimately risk both to
companies preparing financial statements and investors and others using those
financial statements to make economic decisions.

Applying national accounting standards meant amounts reported in financial

statements might be calculated on a different basis. Unpicking this complexity
involved studying the minutiae of national accounting standards, because even a
small difference in requirements could have a major impact on a company’s reported
financial performance and financial position—for example, a company may
recognise profits under one set of national accounting standards and losses under
another.

Benefits of IFRS Accounting Standards

IFRS Accounting Standards address this challenge by providing a high-quality,
internationally recognised set of accounting standards that bring transparency,
accountability and efficiency to financial markets around the world.

IFRS Accounting Standards bring transparency by enhancing the international

comparability and quality of financial information, enabling investors and other
market participants to make informed economic decisions.

IFRS Accounting Standards strengthen accountability by reducing the information

gap between the providers of capital and the people to whom they have entrusted
their money. Our Standards provide information that is needed to hold management
to account. As a source of globally comparable information, IFRS Accounting
Standards are also of vital importance to regulators around the world.

And IFRS Accounting Standards contribute to economic efficiency by helping

investors to identify opportunities and risks across the world, thus improving capital
allocation. For businesses, the use of a single, trusted accounting language lowers
the cost of capital and reduces international reporting costs.

Experience of adopting jurisdictions

Changing to IFRS Accounting Standards does not come without cost and effort. The
companies reporting will generally need to change at least some of their systems
and practices; investors and others using financial statements need to analyse how
the information they are receiving has changed; and securities regulators and
accounting professionals need to change their procedures.

But academic research and studies by adopting jurisdictions provides overwhelming

evidence that the adoption of IFRS Accounting Standards has brought net benefits to
capital markets. 

IFRS was successful in creating a common accounting language for capital markets.

European Commission, 2015

Evidence suggests that IFRS [Accounting] Standards adoption has largely been
positive for listed companies.

Australian Accounting Standards Board, 2016

IFRS [Accounting Standards] adoption affected positively in reducing investment risk
in domestic firms, in mitigating the 'Korea discount' and in attracting foreign capital
via overseas stock listing, bond issuance or M&A.

Korean Accounting Standards Board, 2016

The documented benefits include a lower cost of capital for some companies and
increased investment in jurisdictions adopting IFRS Accounting Standards. Some
companies also report benefits from being able to use IFRS Accounting Standards in
their internal reporting, improving their ability to compare operating units in different
jurisdictions, reducing the number of different reporting systems and having the
flexibility to move staff with IFRS Accounting Standards experience around their
organisation. 

In Japan, where use of IFRS Accounting Standards has been voluntary since
2010, a report by the Japanese Financial Services Agency identified business
efficiency, enhanced comparability and better communications with international
investors as the main reasons why many Japanese companies had chosen to adopt
IFRS Accounting Standards. 

Progress towards global accounting standards

IOSCO recognised the benefits of global accounting standards when, in the year
2000, it recommended to its members that they allow IFRS Accounting Standards to
be used on their exchanges for cross-border offerings. 

Since that point, IFRS Accounting Standards have gone on to become the de
facto global language of financial reporting, used extensively across developed,
emerging and developing economies.

Our research shows that 167 jurisdictions now require the use of IFRS Accounting
Standards for all or most publicly listed companies, whilst a further 12 jurisdictions
permit its use. 

Visit our jurisdictional use of IFRS Accounting Standards page for more information

on individual jurisdictions.

IFRS Interpretations Committee

About the IFRS Interpretations Committee
The IFRS Interpretations Committee (Interpretations Committee) is the interpretative
body of the International Accounting Standards Board (IASB). The Interpretations
Committee works with the IASB in supporting the consistent application of IFRS
Accounting Standards.

The Interpretations Committee responds to questions about the application of the

Accounting Standards and does other work at the request of the IASB.  

The Interpretations Committee comprises 14 voting members, appointed by the

Trustees of the IFRS Foundation. The members provide the best available technical
expertise and diversity of international business and market experience relating to
the application of IFRS Accounting Standards. Click here to read the criteria for
Interpretations Committee members.

Interpretations Committee meetings are open to the public and are webcast.