The Trustees of the International Financial Reporting Standards Foundation published the Foundation’s annual report and audited financial statements for the year ended 31 December 2024, alongside an organisational review aimed at streamlining decision-making and accountability, reducing costs and reshaping funding as the International Sustainability Standards Board (ISSB) moves beyond its initial scale-up phase. On standard-setting, the International Accounting Standards Board (IASB) issued IFRS 18 Presentation and Disclosure in Financial Statements and IFRS 19 Subsidiaries without Public Accountability: Disclosures, consulted on 13 projects and finalised or began post-implementation reviews of three major Standards. The ISSB focused on supporting jurisdictions adopting or otherwise using IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2 Climate-related Disclosures, cited as more than 35 jurisdictions representing more than 40% of global market capitalisation, and provided materials to help companies and investors prepare for use of the Standards. The organisational review includes a completed reorganisation to create a new operating model, cost savings and efficiencies including reducing staff costs through attrition and redundancies representing approximately 15% of staff costs, and a shift towards a more diversified, market participants-led funding model for the ISSB supported by a new funding team under senior leadership. For financial year 2024, the Foundation reported income of GBP 67.6m and operating expenses of GBP 68.9m, resulting in a pre-tax deficit of GBP 1.6m, with reserves of GBP 47.9m. The deficit was attributed mainly to one-off technology expenditures to upgrade and integrate systems and to income falling short of target as funding programmes were refreshed and diversification beyond initial seed funding began; the review is intended to address a deficit gap expected to build over the next two years, including potential income reduction as certain seed funding arrangements conclude in 2026, with the goal of achieving a balanced budget by the end of 2026.
International Financial Reporting Standards Foundation 2025-04-01
International Financial Reporting Standards Foundation publishes 2024 annual report setting reorganisation and funding changes to close GBP 1.6m deficit by end-2026
The International Financial Reporting Standards Foundation's 2024 report shows a GBP 1.6m pre-tax deficit due to technology upgrades and funding shortfalls. The International Accounting Standards Board issued new standards and consulted on 13 projects, while the International Sustainability Standards Board supported jurisdictions adopting IFRS S1 and S2. An organisational review aims to streamline decision-making, reduce costs, and diversify funding to address future deficits and achieve a balanced budget by 2026.