BETTER INFORMATION FOR BETTER DECISIONS
Annual Report
2022
2 IFRS Foundation Annual Report - INTRODUCTION
Better information for better decisions
The IFRS Foundation was created in the belief
that better information supports better economic
and investment decisions. We work to achieve this
vision through the development of high-quality global
standards that result in decision-useful information.
IFRS
®
Accounting Standards and IFRS
®
Sustainability
Disclosure Standards are developed following a
rigorous, inclusive and transparent due process—
and with consideration for the connectivity between
accounting and sustainability disclosures.
As a public-interest organisation, we full society’s
needs by empowering people with better information to
support better decision-making.
About this report
This report covers the nancial year ended 31
December 2022 and was authorised for issue in March
2023. If you have questions or feedback on the report,
please email [email protected]. Detailed
information about the IFRS Foundation can be found
on www.ifrs.org.
IFRS Foundation Annual Report - ABOUT US3
Contents
3 IFRS Foundation Annual Report - CONTENTS
KEY ACCOMPLISHMENTS
4 Key accomplishments in 2022
REPORTS
5 Report from the Chair of the
IFRS Foundation Trustees
7 Report from the Chair of the International
Accounting Standards Board
9 Report from the Chair of the International
Sustainability Standards Board
11 Report from the Chair of the
IFRS Foundation Monitoring Board
ORGANISATION
14 About us
14 Mission statement
15 Objectives
15 How we create value
16 Our structure
17 How we work―due process
17 Our standard-setting process
18 Our brand
19 Our people
21 Meet some of our colleagues
23 International Accounting Standards Board
24 International Sustainability Standards Board
25 Our locations
26 Our stakeholders and how we engage
27 Consultative groups
27 Groups advising the Trustees,
the IASB and the ISSB
28 Advisory and consultative groups for the IASB
29 Advisory and consultative groups for the ISSB
2022 REVIEW AND 2023 PRIORITIES
31 2022 review and 2023 priorities―IASB
35 2022 review and 2023 priorities―ISSB
38 Connectivity between the IASB and the ISSB
39 2022 review and 2023 priorities―operations
GOVERNANCE
42 Trustees of the IFRS Foundation
44 Trustee committees
47 Key organisational risks
FINANCIALS
49 Introduction to the nancial statements
50 2022 review
53 Trustees’ responsibilities statement
54 Independent auditor’s report to the
Trustees of the IFRS Foundation
62 Consolidated statement of comprehensive income
62 Consolidated statement of changes in retained
surplus
63 Consolidated statement of nancial position
64 Consolidated statement of cash ows
65 Notes to the consolidated nancial statements
APPENDICES
90 Funding providers
95 IFRS Foundation Monitoring Board
96 IFRS Interpretations Committee
97 IFRS Advisory Council
4 IFRS Foundation Annual Report - KEY ACCOMPLISHMENTS
Key accomplishments in 2022
The IFRS Foundation now has two boards―
International Accounting Standards Board (IASB) and
International Sustainability Standards Board (ISSB)―
supported by technical teams and operations staff to
deliver the organisation's goals.
We consolidated the Climate Disclosure Standards
Board (CDSB) and the Value Reporting Foundation
(VRF) into the IFRS Foundation in February and
August 2022 respectively.
Completed the Third
Agenda Consultation to
shape the priorities and
work plan for the IASB
through 2026
Published an Exposure
Draft of the Third edition of
the IASB’s IFRS for SMEs
®
Accounting Standard
Advanced to standard-setting two
signicant IASB projects: Dynamic
Risk Management and Business
Combinations—Disclosures, Goodwill and
Impairment
Set up the ISSB and
appointed a full and
diverse complement of 14
members
Published the ISSB’s rst two exposure
drafts and deliberated feedback from more
than 1,400 comment letters in preparation for
the issuance of the rst IFRS Sustainability
Disclosure Standards
Opened ISSB ofces in
Frankfurt and Montreal,
and signed agreement to
open Beijing ofce
5 IFRS Foundation Annual Report - REPORTS
Delivering on our promises
Report from the Chair of the
IFRS Foundation Trustees
Erkki Liikanen
During 2022 the IFRS Foundation transformed from
an organisation with a single standard-setting board
to an organisation with two boards―the International
Accounting Standards Board (IASB) and the new
International Sustainability Standards Board (ISSB).
The two boards are separate but complementary.
The creation of the ISSB was encouraged by the G20,
the G7, the International Organization of Securities
Commissions (IOSCO), the Financial Stability Board
and others.
In November 2021 at COP26 in Glasgow I made
three strategic announcements: rst, the formation
of the ISSB; second, the consolidation of the
Climate Disclosure Standards Board (CDSB) and
the Value Reporting Foundation (VRF) into the
IFRS Foundation; and third, the publication of
two prototypes as a basis for the ISSB’s rst two
sustainability disclosure Standards.
A year later, I can report that we have delivered on
these pledges.
• The ISSB is up and running, with 14 globally
and professionally diverse members and with
operations on three continents—including in
Frankfurt, Montreal, San Francisco and London.
We have also committed to open an ofce in
Beijing and to continue to develop our Tokyo ofce.
• We have consolidated the CDSB and the VRF and
are beneting from the intellectual capital each
organisation has brought, as well as the value
added by our new colleagues and their expertise
and networks.
• In March 2022 we published for public consultation
two proposed Standards, building on the prototypes
published at COP26. The ISSB expects to issue the
rst two IFRS Sustainability Disclosure Standards
in 2023.
IASB work plan
Against this new activity, I am pleased by the IASB’s
progress on its important work plan. In particular, the
IASB has concluded on its Third Agenda Consultation,
shaping the IASB’s priorities through 2026. In addition, the
IASB has been especially active this year in undertaking
post-implementation reviews (PIRs)—a vital aspect of
effective standard-setting—and in communicating with
stakeholders about the objectives and possible outcomes
of these post-implementation reviews.
New appointments
The Foundation has completed the appointments of new
IASB members and inaugural ISSB members, as well
as members of existing and new advisory bodies. These
appointments ensure that we continue to ground our work
in the technical expertise of capital market leaders and
other key stakeholders.
One Foundation programme
To build a cohesive organisation, we have established a
One Foundation programme at the organisational level
(see page 39). We continue to grow as an organisation to
meet our expanded mission, with new ofce agreements
and recruitment efforts to help us deliver on our strategy.
In addition to our ongoing focus on setting the strategy
and overseeing the governance of the IFRS Foundation,
the Trustees have taken a keen interest in two aspects
that we see as vital to our ongoing progress: the culture of
the organisation and our own sustainability.
Work culture
On culture, we recognise that the key to any successful
consolidation is getting to know the working styles and
values of the legacy organisations to identify the elements
we want to have in common and the strengths we want to
build on to support our future success.
The IFRS Foundation has started several initiatives to help
us establish an effective and responsive organisational
culture, informed by expert advice. These initiatives
include surveys, workshops and the creation of a
culture champions network of people from across the
organisation. The Trustees’ Human Capital Committee is
supporting and monitoring this work closely.
6
Sustainability
On our own sustainability, we recognise the importance of
acting responsibly. We have established a Trustee-level
task force that will work closely with IFRS Foundation
staff to review our internal sustainability strategy, policies,
management systems and reporting. We are putting
governance processes in place to deliver this important
work.
Together, these initiatives demonstrate the Trustees’
recognition of the importance of human and natural
resources and social relationships to the ongoing success
of the organisation.
Looking ahead
2022 was a signicant year for the IFRS Foundation,
with important milestones for the IASB and the inaugural
meetings of the ISSB.
We look ahead to building on these milestones in 2023
as we embed our One Foundation culture, and continue
to grow our new ofces and develop IFRS Accounting
Standards and IFRS Sustainability Disclosure Standards.
I would like to thank my fellow Trustees, members of our
two boards, staff and our many stakeholders around the
world for their work and continued support.
IFRS Foundation Annual Report - REPORTS
Delivering on our promises (continued)
7
Report from the Chair of the International
Accounting Standards Board
Andreas Barckow
2022 has been a productive year for the IASB―with
valuable in-person engagement with both colleagues
and stakeholders―thanks to the hard work and
dedication of our technical staff, my fellow IASB
members and stakeholders around the world.
We have made great progress on our many projects
and taken important technical decisions following open
and frank discussions around the board table. I would
particularly like to highlight a few projects.
• Business Combinations─Disclosures, Goodwill and
Impairment, which we have moved to the standard-
setting phase. We are now working towards an
exposure draft, following key decisions by the
IASB that included retaining the impairment-only
model and requiring additional disclosures on the
subsequent performance of an acquisition.
• Primary Financial Statements, which aims to
enhance transparency and improve comparability
of performance reporting globally. We expect to
conclude our discussions on this project in 2023.
• The Second Comprehensive Review of the IFRS for
SMEs Accounting Standard, where we concluded
our deliberations and consulted on Exposure Draft
Third Edition of the IFRS for SMEs Accounting
Standard.
We also concluded post-implementation reviews
(PIRs) of IFRS 10 Consolidated Financial Statements,
IFRS 11 Joint Arrangements and IFRS 12 Disclosure
of Interests in Other Entities, as well as the review of
IFRS 9 in regard to classication and measurement.
These reviews involved extensive engagement with
stakeholders to determine what is working well and
whether improvements are needed.
Strategic work plan
Stakeholder feedback has always been essential in
shaping the IASB’s work and the Accounting Standards
we develop. This year it was even more vital as our
stakeholders helped us determine our key priorities for
the next ve years.
We published the nal outcomes of our Third Agenda
Consultation in July 2022. The review of feedback
showed that stakeholders think our balance of activities
is right but asked us to invest slightly more resources
into the development of digital nancial reporting
and the understandability and accessibility of IFRS
Accounting Standards. They also told us very clearly
that we should progress what we have on our work
plan before we begin any new projects.
So, advancing projects under way will be our
immediate priority. We have also decided to add
three new projects to our future work plan, following
stakeholder feedback:
• a comprehensive review of IAS 38, our Accounting
Standard on intangible assets;
• a review of requirements for the statement of cash
ows and related matters; and
• a project on accounting for climate-related risks in
the nancial statements.
In spring 2023, we expect to start working on the
project on climate-related risks in the nancial
statements, which is of course related but separate to
the ISSB’s work on climate-related disclosures outside
the nancial statements.
Setting the course for the next ve years
IFRS Foundation Annual Report - REPORTS
8
Stakeholders also told us in their feedback to the
IASB’s Third Agenda Consultation that they want to
see the IASB and the ISSB working closely together
in general. They specically drew reference to the
Management Commentary project as an example
of where this will be important to them, because the
requirements from both boards must be connected
to meet investors’ needs. It is important that we work
together to ensure that opportunities for cooperation
are maximised.
Other key priorities for 2023 include seeking input for
our PIR of the impairment requirements in our nancial
instruments Accounting Standard, IFRS 9, and for the
PIR of IFRS 15, our revenue Accounting Standard.
New members
Finally, I am pleased that the IASB will be back to its
full complement by April 2023. Patrina Buchanan,
Linda Mezon-Hutter and Robert Uhl joined as IASB
members during autumn 2022, and Florian Esterer and
Hagit Keren will start their terms in spring 2023. I am
truly delighted that the Trustees have appointed Linda
Mezon-Hutter as Vice-Chair. She started her new role
on 1 January 2023 and will be of great help in guiding
the organisation through our agenda.
Thank you
I thank my colleagues and our stakeholders for all
their support and engagement in the past year and
look forward to continuing working together to deliver
our mission.
IFRS Foundation Annual Report - REPORTS
Setting the course for the next ve years
(continued)
9
Report from the Chair of the International
Sustainability Standards Board
Emmanuel Faber
The ISSB nished its rst year on a high. Board
members and technical and operations staff worked
together effectively and made strong progress against
our objectives. We were pleased to see private and
public sector organisations as well as jurisdictions
mobilising in support of high-quality global sustainability
standards that meet the information needs of investors
in a manner that is cost-effective for companies. This
has placed us on very rm footing for 2023 and beyond.
At the start of 2022, we had the advantage of building
on the established work and technical expertise of
the Climate Disclosure Standards Board (CDSB)
and the Value Reporting Foundation (VRF), both of
which were consolidated into the IFRS Foundation in
2022. These two organisations shared the ambition to
meet the needs of market participants with standards
and frameworks built on a rigorous and transparent
approach. We could not have asked for a better platform
to work from.
Draft Standards
Our rst task was to publish the draft Standards S1
(General Requirements) and, in response to the clear
demand for a focus on climate, S2 (Climate). We
embedded the reporting framework drawn up by the
Task Force on Climate-related Financial Disclosures
(TCFD) at the core of our standard-setting work.
To build global standards we need global perspectives.
After publishing the rst two draft Standards with a
four-month comment period, we engaged in extensive
outreach and received more than 1,400 comment letters
from a broad range of stakeholders, representative of
all parts of the world. This feedback has guided us in
making signicant decisions throughout the year that
bring us within touching distance of nalising our rst
two Standards.
To name just a few of these decisions: we have
established a clear approach to Scope 1, 2 and 3
greenhouse gas disclosures as well as nanced
emissions disclosures. We have claried fundamental
concepts in our Standards, articulating the link between
a company’s ability to deliver value for investors and
the stakeholders it works with and serves, the society it
operates in, and the natural resources it draws on.
Interoperability
Global interoperability between standards is a crucial
part of our work. Through our Jurisdictional Working
Group (JWG), we meet monthly with ve jurisdictions
active in standard-setting in the eld of sustainability
disclosures. We have established a collaborative effort
with the European Union to ensure that their and our
standards can be applied effectively together. We have
other specic initiatives in place to help us converse with
jurisdictions around the world, with a specic focus on
ensuring our Standards can be applied by companies in
the Global South.
Preparing to issue Standards
We have a clear set of priorities to maintain our
momentum in 2023. First, we are bringing the work that
has been done in the past 12 months to fruition. We
took our nal critical decisions on S1 and S2 in February
2023, and we are now prepared to nalise and issue our
rst two Standards, ready for adoption.
Building global standards
IFRS Foundation Annual Report - REPORTS
10
Capacity building
We understand adopting a truly global baseline
of sustainability standards means companies,
investors and regulators must learn a new language.
Our responsibility started with setting pragmatic
proportionality and scalability mechanisms in our
Standards to be truly inclusive for large and small
organisations, and we continue to proactively support
education, training and capacity building in relation to
our Standards. To that effect, we announced at COP27
in November 2022 the creation of our Partnership
Framework for capacity building, which we have
committed to launch at COP28.
We have also established a stream of other work
to enable the successful application of our rst two
Standards, S1 and S2. This other work includes:
• a digital taxonomy to facilitate digital reporting;
• projects to expand connectivity with the IASB’s work;
• improvements to the international applicability of the
SASB Standards referenced through S1; and
• continued engagement with the Global Reporting
Initiative (GRI) to support interoperability, consistent
with the strategic cooperation agreement we made
with them in 2022.
Having heard strong feedback on the connection
between climate and nature, including biodiversity,
deforestation and water, this work also includes
considering incremental enhancements complementary
to disclosures required by S2, relating to natural
ecosystems and the human capital aspects of the
climate resilience transition. We have already started
research on this nexus.
Consultations
Finally, thanks to insights provided to us in the
feedback on our draft Standards, we will consult on
a number of priority projects in Q2 of 2023, including
biodiversity, human capital and human rights. We will
also consult on whether we should undertake a project
to further integrate reporting including whether this
work should be undertaken with the IASB.
Thank you
In December we had our rst board meeting with
all 14 members. This means we started 2023 at full
strength, with the great breadth of diverse expertise and
background that will be the cornerstone of our work.
We have achieved much in the past 12 months, and
I am immensely grateful to my colleagues across the
Foundation who have produced work to the highest
standard consistently throughout the year.
IFRS Foundation Annual Report - REPORTS
Building global standards (continued)
11
Report from the Chair of the
IFRS Foundation Monitoring Board
Jean-Paul Servais
It would be impossible to try to capture all the
important developments within the IFRS Foundation
in 2022 in my report. The remainder of this annual
report casts light on the wide array of its activities
in this truly revolutionary year for global corporate
reporting. I would, however, want to highlight the
importance of the groundbreaking work of the
Trustees and the leadership and staff of both boards
to tackle some of the most challenging issues for
investors, markets and society around the globe.
The Monitoring Board is proud to have worked closely
with the Trustees to ensure the considerations of
public interest and due process are an integral part of
their key activities, such as:
• successfully establishing a quorate International
Sustainability Standards Board (ISSB);
• identifying the priorities of the International
Accounting Standards Board (IASB) over the next
ve years; and
• (re)appointing an array of truly impressive individuals
from diverse backgrounds to various roles within
the IFRS Foundation ecosystem, guaranteeing the
diversity of thought, backgrounds and workable
global solutions for the challenges ahead.
The mission of the Monitoring Board is to:
• promote the continued development of IFRS
Standards as a high-quality set of global accounting
standards and a global framework of sustainability-
related disclosure standards;
• monitor and reinforce the public interest oversight
function of the Foundation; and
• support the Trustees in their responsibilities to
preserve the independence of the IASB and the
ISSB.
After more than two years in which we have
collectively navigated these issues in a largely virtual
environment, it was a pleasure to be able to resume
in-person meetings in 2022.
Two boards under one roof
The approach of the Monitoring Board always
includes an appropriate balance of speed, quality
and due process when it comes to matters within the
Foundation’s remit. This applies to the impressive
work on sustainability-related matters, while
recognising the importance of the topic and the
associated time sensitivities, both for the organisation
and the investor and corporate ecosystem.
In that light, I am immensely proud of the work of the
Monitoring Board in 2022. Our members oversaw a
successful completion of the ISSB membership—
including the appointments of the Chair, two
Vice-Chairs and board members—and a suite of
appointments of special advisers and newly formed
consultative bodies. At the same time we continued to
evaluate the performance of the IASB and approved
IASB board members, including its Vice-Chair,
members of the IFRS Interpretations Committee and
other advisers. The rigour, ambition and quality of all
appointees is encouraging. They will, I am certain,
contribute substantially to the ambition of achieving
a global framework of high-quality sustainability
disclosure standards and of continuing to improve the
quality of accounting standards that aim to enhance
transparency and comparability in global capital
markets and to meet investor needs.
A sound foundation for the future
11 IFRS Foundation Annual Report - REPORTS
12
Our focus is on ensuring global inclusiveness of
future standards that are built through an inclusive,
extensive and transparent consultation process,
and effective global outreach and stakeholder
engagement. In addition to the engagement of
geographically and professionally diverse groups
of senior experts, substantial structural changes in
the form of consolidation, and collaborations with
sustainability reporting organisations, the Monitoring
Board commended the design of the consultation
outreach and the efforts of staff through all phases of
the consultation process, including the analysis of a
large volume of responses.
Lastly, the Monitoring Board met with the Trustees in
Frankfurt, Montreal, Seoul and virtually throughout
the year. We spent substantial time on ensuring
maximised returns to the multi-location approach of
the ISSB, especially the effect this could have on the
considerations of strong public interest in its work.
The Monitoring Board will continue to work on ensuring
responsiveness to the public interest and promoting
that ISSB sustainability-related standards are subject
to the same robust governance, rigorous due process
and oversight as are IFRS Accounting Standards. As a
formal link between the Trustees and public authorities
overseeing corporate reporting standard-setting, the
Monitoring Board will closely watch the work of the
International Organization of Securities Commissions
(IOSCO) on the potential endorsement of the nal
ISSB Standards, and will closely monitor the ISSB’s
work on capacity-building activities and implementation
guidance for jurisdictions.
2022 saw important activities from the IASB and its
crucial publication of the Third Agenda Consultation
Feedback Statement, setting out its priorities for the
next ve years.
I would like to congratulate the IASB on such an
important strategic document while navigating
the uncertainties of the past couple of years.
The Monitoring Board is thankful to have had the
opportunity to discuss and engage on this and
other topics throughout 2022, and looks forward
to contributing further in the implementation
phase of these priorities, including the efforts on
complementary work between the IASB and the
ISSB, which aims for a connected nancial reporting
framework that is decision-useful for investors.
Remodelling our mandate
Following the updates to the Foundation’s Constitution
in 2021 to address the establishment of the ISSB, in
2022 the Monitoring Board redeliberated its mandate
and updated its Charter and the Memorandum of
Understanding with the Foundation to incorporate the
monitoring of the Trustees’ oversight of:
• the ISSB as well as the IASB;
• their standard-setting processes; and
• the interactions and interdependencies of their
respective agendas.
On behalf of my colleagues at the Monitoring Board, I
want to express my warmest gratitude to the leadership
and staff of the Foundation for a truly eventful and
rewarding collaboration in the past ve years.
Thank you
As a nal word, I would like to offer my sincere
gratitude to my Monitoring Board colleagues, past
and present, Deputies and the Secretariat for their
commitment and support in 2022 and over the years.
Working with the Foundation on achieving globally
accepted, high-quality corporate reporting standards
is a special journey, the importance of which we
should not take for granted.
A sound foundation for the future (continued)
IFRS Foundation Annual Report - REPORTS
Members of the Monitoring Board are listed on page 95.
Support from partners
'We look forward to the nalisation of standards by
the International Sustainability Standards Board
in support of globally consistent, comparable and
reliable climate-related nancial disclosures, and its
work beyond climate, and we welcome the efforts to
achieve interoperability across disclosure frameworks.'
G20 Bali Leaders’ Declaration
November 2022
'Establishing a global baseline for corporate
sustainability disclosures is a key ambition of
IOSCO’s Workplan for Sustainable Finance,
which aims to increase transparency and mitigate
greenwashing in nancial markets.
The review of the ISSB’s nalised standards for
potential IOSCO endorsement will be a crucial step
towards increased comparability in sustainability
reporting under either voluntary or mandatory
reporting regimes.'
IOSCO Statement
July 2022
'Support for the global baseline has the potential
to improve information and thus mobilise nance
for the needed investments, particularly in
emerging and developing economies, and we ask
the ISSB to work closely with regional standard-
setters and any relevant local stakeholders and to
provide advisory and capacity support.'
G7 Finance Ministers and Central Bank
Governors’ Statement on Climate Issues
October 2022
'We […] support the work of the ISSB to introduce
a global baseline of sustainability disclosures
to meet the needs of capital markets, which will
enhance transparency, accountability, efciency and
comparability across market[s].
Early adoption by African jurisdictions and companies
has the potential to attract more investment and to boost
private sector development in Africa. We urge the ISSB
to work closely with African stakeholders and to provide
strong advisory and capacity building support to achieve
early adoption of the ISSB standards in Africa.'
International Cooperation Forum and Meeting
of African Ministers of Finance, Economy and
Environment Communiqué
September 2022
13
IFRS Foundation Annual Report - ORGANISATION14
About us
The IFRS Foundation is a not-for-prot organisation
established to develop—in the public interest—high-
quality, understandable, enforceable and globally
accepted accounting and sustainability disclosure
standards for general purpose nancial reporting, and to
promote and facilitate their adoption.
The Standards—IFRS
®
Accounting Standards and
IFRS
®
Sustainability Disclosure Standards—are set
by the Foundation’s standard-setting bodies, the
International Accounting Standards Board (IASB) and
the International Sustainability Standards Board (ISSB).
The IFRS Foundation Trustees oversee the two boards
and are accountable to a Monitoring Board of public
authorities.
Mission statement
Our mission is to develop IFRS Standards that bring
transparency, accountability and efciency to nancial
markets around the world. Our work serves the public
interest by fostering trust, growth and long-term nancial
stability in the global economy.
TRANSPARENCY ACCOUNTABILITY EFFICIENCY
15 IFRS Foundation Annual Report - ORGANISATION
Objectives
The IFRS Foundation’s objectives, set out in the
Constitution,
1
are:
• to develop—in the public interest—high-quality,
understandable, enforceable and globally accepted
standards for general purpose nancial reporting
based on clearly articulated principles;
• to promote the use and rigorous application of those
standards;
• to take account of the needs of varied sizes and
types of entities in diverse economic settings when
developing and promoting use of those standards;
and
• to promote and facilitate adoption of those
standards.
How we create value
INPUTS ACTIVITIES OUTPUTS OUTCOMES
• intellectual property
(IFRS Standards
and Frameworks)
• brand and
relationships
• people (staff,
governance)
• stakeholders
(including advisory
and consultative
groups)
• nancial capital
• infrastructure (IT
and ofces)
• develop and
maintain
Standards and
other reporting
tools
• deliver guidance
and services that
support adoption
• consult and
engage
stakeholders
• support high-
quality and
consistent
application of our
Standards
• high-quality
Standards and other
materials
• resilient and high-
performing staff
• engaged
stakeholders
and worldwide
organisational
support
• widespread use
of our Standards
around the world
• increased
transparency,
accountability and
efciency in the
world’s nancial
markets
• improved trust,
growth and long-
term stability in the
global economy
BETTER INFORMATION
FOR BETTER DECISIONS
1
See www.ifrs.org/content/dam/ifrs/about-us/legal-and-governance/constitution-docs/ifrs-foundation-constitution-2021.pdf.
16
The IFRS Foundation has a three-tier governance
structure. The IFRS Foundation Trustees oversee the
two independent standard-setting boards of experts (the
IASB and the ISSB) and are accountable to the IFRS
Foundation Monitoring Board.
The IFRS Foundation’s governance structure is designed
to keep standard-setting independent of special
interests and to maintain a high level of accountability to
stakeholders.
IFRS Foundation Monitoring Board
The Monitoring Board is a group of capital market
authorities responsible for setting out the form and
content of nancial reporting in their jurisdictions. It
reinforces the public oversight of the Foundation and the
Trustees. The Monitoring Board approves all Trustee
appointments. See page 95.
Chair: Jean-Paul Servais
IFRS Foundation Trustees
The 22 Trustees from varied national and professional
backgrounds are responsible for the governance and
strategic direction of the organisation; for maintaining
the Foundation’s Constitution and the Due Process
Handbook; for appointing members to the IASB, the ISSB,
the IFRS Interpretations Committee and various advisory
bodies; and for ensuring funding arrangements are in
place. See page 42.
Chair: Erkki Liikanen
International Accounting
Standards Board (IASB)
The IASB is the independent accounting standard-setting
body of the IFRS Foundation. Its members are appointed
from varied national and professional backgrounds,
including academia, accountancy, investment, preparation
of nancial statements, regulation and standard-setting.
The IASB issues IFRS Accounting Standards, the IFRS
for SMEs Accounting Standard and the IFRS Accounting
Taxonomy, which enables digital reporting. See page 23.
Chair: Andreas Barckow
International Sustainability
Standards Board (ISSB)
The ISSB is the independent sustainability disclosure
standard-setting body of the IFRS Foundation. Its
members are appointed from varied national and
professional backgrounds, including investment,
accounting, sustainability, reporting companies, academia,
and market or nancial regulation. The ISSB will issue
IFRS Sustainability Disclosure Standards and an IFRS
Sustainability Taxonomy to enable digital reporting. See
page 24.
Chair: Emmanuel Faber
IFRS Interpretations Committee
The Interpretations Committee comprises 14 external
members and a non-voting chair. The Committee
works with the IASB by responding to questions about
applying IFRS Accounting Standards. The Interpretations
Committee proposes that the IASB makes narrow-
scope amendments to the Standards, develops IFRIC
®
Interpretations of the Standards and publishes agenda
decisions. See page 96.
Chair: Bruce Mackenzie
IFRS FOUNDATION MONITORING BOARD
IFRS FOUNDATION TRUSTEES
International Accounting
Standards Board (IASB)
International Sustainability
Standards Board (ISSB)
IFRS Accounting
Standards
IFRS Interpretations Committee
Public accountability
Governance, strategy
and oversight
Independent
standard-setting
and related activity
IFRS Sustainability
Disclosure Standards
Our structure
IFRS Foundation Annual Report - ORGANISATION
IFRS Foundation Annual Report - ORGANISATION17
How we work—due process
The IFRS Foundation has a highly regarded, inclusive
and transparent due process for developing IFRS
Standards. This due process is outlined in our
Constitution and in more detail in the Due Process
Handbook.
The due process enables our diverse group of
stakeholders to inform and scrutinise the standard-
setting, helping us ensure that the requirements reect
the best thinking worldwide.
Ongoing
research
and broad
consultation
Transparency, full and fair consultation, and
accountability are the essential principles of due
process. These principles help give stakeholders
condence that all relevant views have been
considered when the Standards are developed. Due
process builds trust, legitimacy and global acceptance
of the Standards.
The Trustees, who are responsible for the governance of
the IFRS Foundation, are also responsible for ensuring
that the IASB, the ISSB and the IFRS Interpretations
Committee follow due process. The Trustees carry
out this responsibility via their Due Process Oversight
Committee. See page 45.
Determine which
projects to work on
Issue Standard
Check Standard works as
intended and maintain it
Research possible
solutions
Develop proposals
Support consistent
application
Our standard-setting process
IFRS Foundation Annual Report - ORGANISATION18
Our brand
The IFRS Foundation has been undergoing an exciting
evolution, now with two boards, the IASB and the ISSB,
united in the belief that better information supports
better economic and investment decisions.
To reect our evolving organisation, we have
introduced an updated brand system for the IFRS
Foundation, with a new look for all our materials,
including the website and publications.
The IFRS Foundation brand system represents
the organisation, our people and our Standards. It
comprises three core brand areas:
• IFRS Foundation (primary brand), represented by
our traditional deep red colour;
Publications from the IASB will be dark blue and
carry the IFRS Accounting logo, while publications
from the ISSB will be light blue and carry the IFRS
Sustainability logo.
• IFRS Accounting (sub-brand), represented by dark
blue and used with materials of the IASB and the
IFRS Accounting Standards; and
• IFRS Sustainability (sub-brand), represented by light
blue and used with materials of the ISSB and the
IFRS Sustainability Disclosure Standards.
Two interim sub-brands, Integrated Reporting and
SASB Standards, are also part of the new brand
system. These became intellectual property of the IFRS
Foundation following the consolidation of the VRF.
The evolved brand clearly represents our new two-board
structure and our unied work to develop high-quality,
global standards that result in decision-useful information.
Brand architecture
Publications
Brands consolidated into
IFRS Foundation
Refreshed
brands
Interim sub-brands
The Value Reporting Foundation housed the Integrated Reporting Framework and SASB Standards.
IFRS Foundation Annual Report - ORGANISATION19
Our people
AS AT 31 DECEMBER 2022
2022 brought substantial change to our teams. To
full the Foundation’s expanded remit to develop
sustainability disclosure standards while also
continuing to enhance our accounting standards, we
nearly doubled in size―from 160 people at the end
of 2021 to 298 at the end of 2022. Half the increase
in staff numbers resulted from welcoming the CDSB
and the VRF to the IFRS Foundation—the CDSB in
February and the VRF in August.
The rest of the increase comes from hiring new staff―
including hiring ISSB members and technical staff in
new Frankfurt and Montreal ofces—to provide the
ISSB the resources it needs to achieve its objectives.
In the new ofces, and in our long-standing London
and Tokyo locations, we have also increased our
operation teams’ capacity to manage the larger
organisation. As a result, a third of our staff have
served the Foundation for less than a year.
We have also gained an ofce in San Francisco from the
VRF consolidation, meaning we now work across time
zones stretching from East Asia to the West Coast of
the United States. These developments also mean that,
using our own and external expertise, we now manage
multi-jurisdictional issues, including disparate tax, social
security and employment laws; separate immigration
and payroll requirements; and varied requirements for
healthcare and other benets.
Creating workplaces on three continents reects the
ISSB’s need to build relationships with stakeholders
globally, while jurisdictions around the world create their
own sustainability disclosure infrastructure and build
capacity to adopt and apply ISSB Standards among
regulators and companies.
Mindful that culture is an important key to success in
any consolidation, we are involving all staff in identifying
the cultural strengths of the legacy organisations and
planning how to develop the most effective cultural
framework for fullling our mission.
Staff by function
9% 49%
Board members
42%
Technical staff Operations staff
Staff by length of service
<1 year 1 year 2–3 years 4–6 years 7+ years
33% 17% 13% 19% 18%
Gender split
57% Female
43% Male
Staff by age
21-24 25-34 35-44 45-54 55+
43 nationalities
4%
27%
29%
24%
16%
298 staff
IFRS Foundation Annual Report - ORGANISATION20
Staff engagement
Every two years, we conduct a staff engagement
survey to help us measure, understand and improve
staff engagement.
90% 95%
+7
*
I would like to be
working for the
IFRS Foundation in
12 months' time
I am proud to tell
people I work
for the IFRS
Foundation
I would recommend the
IFRS Foundation as a
great place to work
Our people (continued)
In December 2022 an independent research agency
conducted our rst staff engagement survey since
the consolidation of the CDSB and the VRF into the
Foundation, and the formation of the ISSB. Some 72%
of staff participated.
Headline results
*Employee net promoter score is measured on a scale from -100 to +100.
IFRS Foundation Annual Report - ORGANISATION21
Meet some of our colleagues
Megumi Iijima
IASB Technical Staff
Joined: July 2021
From: Japan
Location: Tokyo
Megumi Iijima is an IASB Technical Fellow and a Japanese Certied
Public Accountant. She works on two of IASB’s project teams—
Provisions and Management Commentary.
She focuses on researching practices and liaising with stakeholders in
the Asia-Oceania region, including translating materials to provide easily
accessible information to stakeholders in Japan. Her daily work also
includes preparing staff papers and speaking with stakeholders. Megumi
enjoys working with people from different backgrounds.
Danielle Pham
HR Manager
Joined: February 2009
From: United Kingdom
Location: London
Danielle Pham holds a Bachelor of Arts degree in English and Modern History.
Before joining the IFRS Foundation, she had operational roles for different
London-based companies—an international technology public relations agency,
an independent magazine publisher and a small TV production company.
As an HR Manager, one of her main responsibilities is to recruit technical staff.
Danielle delights in speaking to bright, talented and interesting candidates from
across the world who want to join the IASB and ISSB technical teams.
Amanda Martin
Director of Communications—Americas
Joined: November 2012
From: United States
Location: Montreal
Amanda Martin has a background in environmental studies and began her
career in sustainability reporting at a public relations rm. There she witnessed
the challenges of greenwashing rsthand. Working at the SASB cemented her
belief in the power of standards as an antidote.
Amanda supports the communications needs of the ISSB in Canada and
the US. She also plans engagements in the Americas region, for example
participation in the COP15 biodiversity conference, which took place in Montreal
in December 2022, and the IFRS Sustainability Symposium, which took place in
Montreal in February 2023. Amanda helped to establish the Montreal ofce and
looks forward to building awareness of and engagement with the ISSB.
IFRS Foundation Annual Report - ORGANISATION22
Meet some of our colleagues (continued)
Jing Zhang
Head of Climate Research
Joined: August 2022
From: China/United States
Location: San Francisco
Jing Zhang has a PhD in Statistics and spent two decades in nancial
risk management, including modelling the nancial impacts of climate
change, before joining the IFRS Foundation as Head of Climate
Research.
Jing’s work involves aspects of research, standard-setting and
market engagement. In 2022, he worked on the exposure draft and
redeliberation of climate-related disclosures, in particular scenarios
analysis and GHG emissions.
Caroline Clark-Maxwell
ISSB Technical Staff
Joined: November 2021
From: Norway
Location: Frankfurt
Caroline Clark-Maxwell has a background in business, economics and
environmental sciences. She previously worked at the Impact Management
Project, which was a time-bound forum for building global consensus on how to
measure, assess and report impacts on people and the natural environment.
Caroline leads the ISSB’s Climate-related Disclosure project team, which is
developing one of the rst two IFRS Sustainability Disclosure Standards. She
routinely works with the technical team on analysing comment letters and
developing staff recommendations to the ISSB, speaking with stakeholders
through outreach and liaising with ISSB members on technical topics.
Carlo Pereras
IASB Technical Staff
Joined: December 2017
From: Philippines
Location: London
Carlo Pereras is a member of the IASB technical team. He leads the project
on subsidiaries without public accountability within the Disclosure Initiative.
A key part of his role is to evaluate stakeholder feedback and provide the
IASB with recommendations. In 2022, Carlo helped deliberate feedback on
the exposure draft of a new standard that would permit certain subsidiaries to
apply IFRS Accounting Standards with reduced disclosures.
Carlo enjoys exploring different, occasionally conicting, ideas and working to
achieve agreement on recommendations to the IASB with his team. He nds
the teamwork and intellectual challenge interesting and rewarding.
IFRS Foundation Annual Report - ORGANISATION23
International Accounting Standards Board
AS AT 31 DECEMBER 2022
Robert Uhl
From: United States
Region: Americas
First term ends
31 August 2027
Patrina Buchanan
From: Ireland
Region: Europe
First term ends
30 November 2027
Nick Anderson
From: United Kingdom
Region: Europe
Second term ends
31 August 2025
Zach Gast
From: United States
Region: Americas
First term ends
31 July 2025
Bruce Mackenzie
From: South Africa
Region: Africa
First term ends
30 September 2025
Bertrand Perrin
From: France
Region: Europe
First term ends
30 June 2026
Ann Tarca
From: Australia
Region: Asia-Oceania
Second term ends
30 June 2025
Tadeu Cendon
From: Brazil
Region: Americas
First term ends
30 June 2024
Jianqiao Lu
From: China
Region: Asia-Oceania
Second term ends
31 August 2025
Linda Mezon-Hutter
1
From: Canada
Region: Americas
First term ends
31 August 2027
Rika Suzuki
From: Japan
Region: Asia-Oceania
First term ends
30 June 2024
Tom Scott completed his rst term on 31 March 2022.
Mary Tokar completed her second term on 31 August 2022.
Sue Lloyd stepped down as IASB Vice-Chair on 1 March 2022 when she took up her position as ISSB Vice-Chair.
The IFRS Foundation Trustees appointed Florian Esterer and Hagit Keren as new IASB members to start in 2023,
bringing the Board to a full complement of 14 members.
1 The IFRS Foundation Trustees appointed Linda Mezon-Hutter as Vice-Chair of the IASB and she started her new position on 1 January 2023.
Andreas Barckow
Chair
From: Germany
Region: At large
First term ends
30 June 2026
IFRS Foundation Annual Report - ORGANISATION24
International Sustainability Standards Board
AS AT 31 DECEMBER 2022
Emmanuel Faber
Chair
From: France
Region: At large
First term ends
31 December 2024
Sue Lloyd
Vice-Chair
From: New Zealand
Region: At large
First term ends
28 February 2026
Hiroshi Komori
From: Japan
Region: Asia-Oceania
First term ends
30 September 2025
Ndidi Nnoli-Edozien
From: Nigeria
Region: Africa
First term ends
30 September 2026
Veronika Pountcheva
From: Bulgaria
Region: Europe
First term ends
30 September 2027
Richard Barker
From: United Kingdom
Region: Europe
First term ends
30 September 2026
Verity Chegar
From: United States
Region: Americas
First term ends
30 June 2027
Michael Jantzi
From: Canada
Region: Americas
First term ends
30 September 2025
Bing Leng
From: China
Region: Asia-Oceania
First term ends
30 September 2026
Jingdong Hua
Vice-Chair
From: China
Region: At large
First term ends
30 September 2026
Jenny Bonger-Schuster
From: Germany
Region: Europe
First term ends
30 November 2027
Jeffrey Hales
From: United States
Region: At large
First term ends
30 June 2027
Elizabeth Seeger
From: United States
Region: Americas
First term ends
30 September 2025
Tae-Young Paik
From: South Korea
Region: Asia-Oceania
First term ends
30 September 2025
IFRS Foundation Annual Report - ORGANISATION25
Our locations
London and Tokyo
The IFRS Foundation’s London ofce provides space
for 200 staff. All IASB members are predominantly
based in the London ofce, together with the IASB
technical staff and most of the operations teams. Since
the creation of the ISSB, some ISSB technical staff are
also located in London.
The Tokyo ofce has historically supported the IFRS
Foundation and the IASB’s work. It is also supporting
the ISSB’s work since its creation. The ofce is now
the base for some ISSB members and serves as a
dedicated regional point of contact for stakeholders and
a platform for deeper cooperation with stakeholders in
the Asia-Oceania region.
Frankfurt, Montreal and Beijing
Frankfurt is the seat of the ISSB, housing the ofce
of the Chair and serving as the hub for the Europe,
Middle East and Africa regions.
The Montreal ofce houses standard-setting
responsibilities and market engagement functions,
serving as the hub for the Americas region.
Established in 2022 these two ofces serve as the
base for ISSB members, and support key functions
of the ISSB and deeper cooperation with regional
stakeholders.
In December 2022 the IFRS Foundation signed a
Memorandum of Understanding with the Ministry
of Finance of the People’s Republic of China to
establish an ISSB ofce in Beijing. The ofce will
work in collaboration and cooperation with other IFRS
Foundation ofces around the globe. It will house
ISSB members as well as staff focused on supporting
stakeholders in emerging and developing economies
and smaller businesses.
San Francisco
The ISSB also has a strong presence in the United
States, with an ISSB member and technical staff based
in San Francisco, following the consolidation of the
VRF into the IFRS Foundation.
San Francisco office
Montreal office
Frankfurt ofce
Tokyo ofce
London ofce
IFRS Foundation Annual Report - ORGANISATION26
Our stakeholders and how we engage
Effective stakeholder engagement is a prerequisite
for the IFRS Foundation to achieve its objectives. The
Foundation publishes formal consultation documents
STAKEHOLDERS THEIR NEEDS HOW WE RESPOND
ACADEMIA
Contribute to standard-setting through
research. Access to materials and resources
about the Standards, meetings, conferences
and events to inform research
Annual academic research forum, tailored engagement,
literature reviews as part of the standard-setting work by
the boards
ACCOUNTING
PROFESSION AND
AUDITORS
Access to materials and resources about the
Standards, input to the standard-setting
process, conferences and events―and having
IFRS Foundation speakers participate at their
events to educate professionals
Joint conferences and events, regular meetings,
cooperation with the International Federation of
Accountants
CIVIL SOCIETY
Have a keen interest in the transparency of
nancial reporting and sustainability matters
Consultations, events and news (website and social
media)
CUSTOMERS
Superior products and services Products, services, licensing material and intellectual
property
COMPANIES
Recognised standards that can be applied
globally and are trusted by investors around
the world
Meetings with the Global Preparers Forum (see page
28), regular educational events, conferences, guidance
and explanatory materials
FUNDING PROVIDERS
Reputable standard-setting projects that will
benet their jurisdictions and clienteles
Regular updates and engagements
INVESTORS
Consistent, comparable and reliable nancial
and sustainability disclosures that enable them
to make informed decisions
Meetings with the Capital Markets Advisory Committee
(see page 28) and the ISSB Investor Advisory Group
(see page 29), the Investors in Financial Reporting
programme, dedicated investor relations team and
regular meetings
MEDIA
New information that engages their audiences,
thought leadership
Press ofce, regular communications and briengs
POLICY MAKERS AND
REGULATORS
Well-regulated capital markets where information
ows seamlessly, and investments thrive;
globally recognised standards that are applicable
to and suitable for their jurisdictions, which they
can adopt, endorse, fund and enforce
Events, cooperation and regular meetings with bodies
including the Basel Committee on Banking Supervision,
IOSCO and jurisdictional regulators and authorities
STANDARD-SETTERS
Involvement in the development of globally
accepted standards, represent their
stakeholders to the IFRS Foundation and in
international debate, share information and
ideas with other standard-setters
Annual conference for standard-setters, as well as
meetings with the Accounting Standards Advisory
Forum, the Emerging Economies Group and the
International Forum of Accounting Standard-setters,
regular engagement with individual standard-setters
and engages with a wide range of stakeholder groups,
tailoring that engagement to their needs.
IFRS Foundation Annual Report - ORGANISATION27
Groups advising the Trustees, the IASB
and the ISSB
IFRS Advisory Council
The Advisory Council is the formal strategic advisory
body to the Trustees and the two boards, consisting of
representatives from a wide range of groups affected
by and interested in the Foundation’s work. It is chaired
by Bill Coen.
www.ifrs.org/groups/ifrs-advisory-council
Integrated Reporting and Connectivity
Council (IRCC)
The IRCC is an advisory body to the IFRS Foundation
Trustees, the IASB and the ISSB. The Council provides
guidance on integrating the reporting required by the
IASB and the ISSB, and applying the principles and
concepts from the Integrated Reporting Framework to
IASB and ISSB projects. It is chaired by Charles Tilley.
www.ifrs.org/groups/integrated-reporting-and-
connectivity-council
Developing accounting and sustainability-related
disclosure standards for the global economy is a
collaborative exercise founded on transparency, full
and fair consultation and accountability.
Our Due Process Handbook—the blueprint for
the standard-setting process, which ensures that
IFRS Standards are developed free from undue
inuence—requires that the boards consider the
perspectives of those affected by IFRS Standards
globally. See page 17.
To help us gather those perspectives, we work closely
with a wide network of advisory committees and other
bodies representing the many stakeholder groups
that have an interest in and are affected by nancial
reporting.
These groups and bodies enable us to efciently
consult with interested parties from a range of
backgrounds and geographical regions. Their input is
essential for standard-setting.
Consultative groups
IFRS Foundation Annual Report - ORGANISATION28
Advisory and consultative
groups for the IASB
The IASB meets publicly with its advisory bodies,
standing consultative groups and transition resource
groups. Papers and webcasts from these meetings
are available on our website. In addition to project-
specic consultative groups, the standing consultative
groups are:
Accounting Standards
Advisory Forum (ASAF)
ASAF was established to formalise and streamline
our engagement with the global community of national
standard-setters and regional bodies to ensure a broad
range of national and regional input on major technical
issues.
www.ifrs.org/groups/accounting-standards-
advisory-forum
Capital Markets Advisory
Committee (CMAC)
CMAC was created to provide the IASB with regular
views from investors around the world. Investors are
important stakeholders because they use nancial
reports prepared using IFRS Accounting Standards.
They provide important information and feedback for
standard-setting.
www.ifrs.org/groups/capital-markets-advisory-
committee
Global Preparers Forum (GPF)
GPF was set up to provide the IASB with regular views
from companies that use IFRS Accounting Standards
to prepare their nancial statements. These preparers
provide valuable comments on our consultations and
feedback on the practical application of the Standards.
www.ifrs.org/groups/global-preparers-forum
Islamic Finance Consultative
Group (IFCG)
The IFCG was established to focus on potential
challenges in applying IFRS Standards to sharia-
compliant instruments and transactions, highlighting
matters that might warrant consideration by the IASB
and/or the IFRS Interpretations Committee.
www.ifrs.org/groups/islamic-nance-consultative-
group
Emerging Economies Group (EEG)
The EEG aims to enhance the participation of
emerging economies in the development of IFRS
Accounting Standards. The EEG also considers
whether, and how, the IASB could provide educational
guidance at the right level for interested parties in
emerging economies and what the best delivery
system for this would be.
The secretariat for the EEG is provided by the Chinese
Ministry of Finance.
www.ifrs.org/groups/emerging-economies-group
IFRS Taxonomy Consultative
Group (ITCG)
The ITCG was established to help provide a technical
advisory and review forum where members can
contribute to the development of the IFRS Taxonomy
by contributing in-depth reviews, technical advice and
strategic implementation guidance.
www.ifrs.org/groups/ifrs-taxonomy-consultative-
group
SME Implementation Group (SMEIG)
The SMEIG considers questions about applying the
IFRS for SMEs Accounting Standard and determines
which questions can be addressed with published
educational materials (Q&As) and which questions
point to a need to amend the Standard.
www.ifrs.org/groups/sme-implementation-group
The IASB also currently has project-specic
consultative groups for two of its technical projects,
Management Commentary and Rate-regulated
Activities.
IFRS Foundation Annual Report - ORGANISATION29
Advisory and consultative
groups for the ISSB
The ISSB also draws on external expertise through
advisory bodies and consultative groups. Several
groups were created for the ISSB during 2022. These
groups include:
Sustainability Standards
Advisory Forum (SSAF)
The SSAF provides a mechanism for formal
engagement between the ISSB and jurisdictional
representatives. It contributes technical advice to the
ISSB on the development of the IFRS Sustainability
Disclosure Standards.
www.ifrs.org/groups/ifrs-sustainability-standards-
advisory-forum
ISSB Technical Reference
Group (ITRG)
The ITRG is a group of subject matter experts from the
former Climate Disclosure Standards Board and Value
Reporting Foundation and external working groups
who provide technical support to ISSB members and
technical staff.
www.ifrs.org/groups/issb-technical-reference-group
ISSB Investor Advisory Group (IIAG)
The IIAG is a group of asset owners and asset
managers in various markets who are committed
to improving the quality and comparability of
sustainability-related nancial disclosures. The IIAG
provides strategic guidance on the development of
IFRS Sustainability Disclosure Standards and helps
to ensure that the investor perspective is clearly
articulated and considered in the standard-setting.
www.ifrs.org/groups/issb-investor-advisory-group
Sustainability Consultative
Committee (SCC)
The SCC provides advice to the ISSB on priority
sustainability matters and related technical protocols.
Members include the International Monetary Fund,
the Organisation for Economic Co-operation and
Development, the United Nations, the World Bank and
additional experts drawn from public, private and non-
governmental organisations.
www.ifrs.org/groups/sustainability-consultative-
committee
ISSB’s engagement with jurisdictions
In 2022 the ISSB began working with major jurisdictions to ensure the interoperability of its initial
Standards. To facilitate this work, the Jurisdictional Working Group (JWG) was established in April 2022
to involve jurisdictions in the development of IFRS Sustainability Disclosure Standards and to consider
interoperability with requirements being developed at the regional and jurisdictional level. Members of the
JWG are China, the EU, Japan, the UK and the US.
The JWG met six times in 2022 and has acted as an anchor for collective and multilateral discussions
with participants. Engagement with the JWG has also led to detailed discussions between the European
Commission, the European Financial Reporting Advisory Group (EFRAG) and the ISSB on improving the
interoperability of their respective draft standards. Following the analysis of comment letters received on
the ISSB’s initial exposure drafts, the JWG has provided input to continue to inform the redeliberations of
the ISSB’s rst two Standards.
The ISSB also held discussions with jurisdictions from the Global South to inform the development of
its adoption strategy. In December 2022 the ISSB convened a roundtable for an update on standard-
setting work, notably on the transitional reliefs being provided in S2 for companies calculating their GHG
emissions. This Global South Roundtable was also used to gather feedback from jurisdictions on the
challenges in adopting and implementing the ISSB’s Standards in the Global South.
The SSAF, created in December 2022, provides another platform for regular input from jurisdictions to the
ISSB’s standard-setting.
30
In March 2022 the IFRS Foundation and Global Reporting Initiative (GRI) agreed
to seek to coordinate the work programmes and standard-setting activities of their
respective standard-setting boards: the ISSB and the Global Sustainability Standards
Board (GSSB). The IFRS Foundation and GRI also agreed to join each other's
consultative bodies related to sustainability reporting activities. Since then, GRI
has joined the Sustainability Consultative Committee (SCC) as a member and the
Sustainability Standards Advisory Forum (SSAF) as an invited observer.
‘The collaboration between GRI and the IFRS Foundation sends a strong signal
to capital markets and society that a comprehensive reporting system, which
combines financial and impact materiality for sustainability reporting on behalf
of a multi-stakeholder audience, including investors, is possible and needed
on a global scale. GRI is looking forward to further strengthening our ties and
cooperation with the ISSB with the objective of accomplishing commonality and
interoperability between the ISSB and GRI standards.'—Eelco van der Enden,
CEO of GRI
Coordination with GRI
30
31 IFRS Foundation Annual Report - 2022 REVIEW AND 2023 PRIORITIES
2022 review—IASB
Third Agenda Consultation
In 2022 the IASB concluded its strategic planning
for the ve-year period from 2022 to 2026. The IASB
reviewed its strategic direction and the balance of
activities and nancial reporting issues on its work
plan. Hundreds of stakeholders from around the world
shared their views about the IASB’s priorities for the
next ve years through over 70 outreach events, more
than 150 comment letters and online survey responses.
The IASB’s Feedback Statement on its Third Agenda
Consultation provides details of the feedback received
and the conclusions of the IASB’s deliberations. These
conclusions focus on:
• continuing to improve the IFRS Accounting
Standards;
• continuing to improve the consistent application of
IFRS Accounting Standards; and
• responding to developments.
See page 34 for how the IASB plans to tackle these
priorities from 2023.
Other key milestones in 2022
• Publishing the Exposure Draft of the third edition of
the IFRS for SMEs Accounting Standard.
• Concluding the majority of decisions on two projects:
Primary Financial Statements and Disclosure
Initiative—Targeted Standards-level Review of
Disclosures.
• Moving the Business Combinations—Disclosures,
Goodwill and Impairment (see page 32) and
Dynamic Risk Management projects from research
to standard-setting, signifying that—after much
research, stakeholder engagement and analysis—
the IASB believes it has feasible solutions that are
ready for exposure drafts.
• Advancing PIRs (see page 32) by:
o completing the PIR on IFRS 10 Consolidated
Financial Statements, IFRS 11 Joint
Arrangements and IFRS 12 Disclosure of
Interests in Other Entities;
o completing the PIR on the classication and
measurement requirements in IFRS 9 Financial
Instruments;
o starting the PIR on IFRS 15 Revenue from
Contracts with Customers; and
o starting the PIR on the impairment requirements
in IFRS 9.
• Responding to feedback to the PIR on the
classication and measurement requirements in
IFRS 9 by prioritising a narrow-scope standard-
setting project to address specied classication
and measurement requirements, including those
that could affect the accounting for ESG-linked
nancial assets.
• Responding quickly to developments in international
tax reform by adding an accelerated project to
propose narrow-scope amendments to IAS 12
Income Taxes.
• Giving negative clearance to nine agenda
decisions
1
by the IFRS Interpretations Committee
and publishing two narrow-scope amendments to
IAS 1 Presentation of Financial Statements and
IFRS 16 Leases as part of ongoing work to support
stakeholders to consistently apply IFRS Accounting
Standards.
• Reconnecting with our stakeholders in person
through outreach on consultation documents and
meetings with our consultative groups.
1 www.ifrs.org/supporting-implementation/how-we-help-support-consistent-application/#agenda-decisions
32 IFRS Foundation Annual Report - 2022 REVIEW AND 2023 PRIORITIES
2022 review—IASB (continued)
Post-implementation reviews
The IASB conducts PIRs on new requirements when they have been in use for at least two years. The
objective of a PIR is to assess whether the effects of applying the new requirements on users of nancial
statements, preparers, auditors and regulators are as intended when the IASB developed those requirements.
A PIR involves consultation with stakeholders and a review of evidence, including academic research. The
process concludes with a determination of whether new requirements are working as intended, and whether
there are specic questions about their application.
A PIR is not a standard-setting project and does not automatically lead to standard-setting. If specic
application questions are identied in the PIR, the IASB considers how to address them as part of its regular
assessment of priorities.
Business Combinations—Disclosures, Goodwill and Impairment
The IASB nished 2022 with a milestone decision to move this project from research to standard-setting.
Although more work remains, the decision signies that the IASB has identied feasible solutions to meet the
project objective of providing users of nancial statements with more useful information about mergers and
acquisitions (business combinations) at a reasonable cost.
The decision comes after much research, stakeholder engagement, analysis and deliberation on two priority
aspects of this project—disclosures about business combinations and subsequent accounting for goodwill.
The IASB decided to propose that companies disclose at the time of an acquisition:
• management’s objectives for the business combination;
• expected synergies from the business combination; and
• metrics and targets that management will use to monitor whether the objectives are being achieved.
These disclosures would be followed in subsequent reporting periods by disclosures about progress in
achieving management’s objectives. Aspects of these disclosures would apply to a subset of business
combinations and be subject to specied exemptions.
Regarding the subsequent accounting for goodwill, the IASB decided to retain an impairment-only model.
Based on analysis of the extensive evidence and feedback, the IASB did not see a compelling case for change
to justify exploring the reintroduction of amortisation of goodwill. Some IASB members observed the diversity
of views and said this diversity would never be reconciled, noting that neither model is perfect. Other IASB
members said that the problem is that the nature of goodwill varies by transaction and goodwill can comprise
both wasting and indenite life elements. Opinions also differed about whether companies could reliably
estimate the useful life of goodwill and the pattern by which it diminishes—something an amortisation-based
model relies on.
In 2023 the IASB will continue to discuss its proposals for improvements to the disclosures about business
combinations and consider whether the impairment model can be simplied or made more effective. The IASB
will then formally consult on its proposals by publishing an exposure draft.
33 IFRS Foundation Annual Report - 2022 REVIEW AND 2023 PRIORITIES
2022 review—IASB (continued)
Second Comprehensive Review of the IFRS for SMEs Accounting Standard
IFRS for SMEs was originally issued in 2009, and the IASB maintains the Standard through periodic reviews.
The rst comprehensive review was completed in 2015, resulting in the second edition of the Standard.
In 2019 the IASB started its second comprehensive review, publishing a Request for Information in January
2020. After reviewing feedback on the Request for Information and the advice of the SMEIG, the IASB
published an Exposure Draft of the Third Edition of the IFRS for SMEs Accounting Standard in September
2022. The comment letter period closed on 7 March 2023.
In 2023 the IASB will consider feedback on the Exposure Draft and begin redeliberations. It expects to issue
the nal Accounting Standard in the second half of 2024.
34 IFRS Foundation Annual Report - 2022 REVIEW AND 2023 PRIORITIES
2023 priorities—IASB
Improving IFRS Accounting Standards
Stakeholders conrmed they want the IASB to prioritise
progress on the approximately 20 existing projects on
its work plan. The IASB’s immediate plans include:
• publishing a Project Summary to complete the
Disclosure Initiative—Targeted Standards-level
Review of Disclosures project;
• publishing an exposure draft in the Financial
Instruments with Characteristics of Equity project;
• completing deliberations on the remaining aspects
of the Primary Financial Statements project and
continuing deliberations on projects such as
Subsidiaries without Public Accountability, Rate-
regulated Activities, Business Combinations—
Disclosures, Goodwill and Impairment, Dynamic Risk
Management and Business Combinations under
Common Control; and
• beginning deliberations on feedback on Exposure
Draft Third edition of the IFRS for SMEs Accounting
Standard.
The IASB also plans to advance the PIRs on its work
plan by publishing requests for information to consult
with stakeholders as part of the PIR on IFRS 15
Revenue from Contracts with Customers and the PIR
on the impairment requirements in IFRS 9 Financial
Instruments. In the second half of 2023, the IASB will
consider whether to start the PIRs on IFRS 16 Leases
and on the hedge accounting requirements in IFRS 9.
Supporting consistent application of
IFRS Accounting Standards
As well as supporting the consistent application
of IFRS Accounting Standards through the IFRS
Interpretations Committee, in 2023 the IASB expects to
nalise narrow-scope amendments on:
• international tax reform;
• supplier nance arrangements; and
• lack of exchangeability.
The IASB also plans to consult on narrow-scope
amendments to IFRS 9 on the classication and
measurement of nancial instruments, including ESG-
linked nancial assets.
As part of its Third Agenda Consultation, the IASB
decided to increase its focus on the understandability
and accessibility of IFRS Accounting Standards, in
particular for users of nancial reports. This work
may include development of educational materials,
improvements to drafting and easier accessibility, for
example through the use of technology.
Responding to developments and
trends
In the Third Agenda Consultation, stakeholders
recommended prioritising activities that respond to
developments, including:
• the growing importance of sustainability reporting;
• the shift towards digital consumption of general
purpose nancial reports; and
• the economic impact of emerging global risks and
opportunities.
Creating the ISSB was an organisation-changing
response to the importance of sustainability, and the
IASB has set aside capacity to work together with the
ISSB to better meet stakeholder needs. See page 38.
The shift to digital consumption has motivated the
IASB to increase its focus on digital nancial reporting
to improve the usefulness, quality, comparability and
accessibility of reports for users. The IASB will focus
on developing IFRS Accounting Standards for a digital
world, improving the IFRS Accounting Taxonomy and
engaging with stakeholders on this matter.
The IASB has judiciously added some new projects to
its pipeline. In 2023 it expects to start a narrow-scope
project to determine what additional actions may be
needed to improve the accounting for climate-related
risks in the nancial statements.
Other additions are a project on intangible assets and
a project on the statement of cash ows that will bring
older standards up to date with developments in the
economy. The timing of these two projects is yet to be
determined.
35 IFRS Foundation Annual Report - 2022 REVIEW AND 2023 PRIORITIES
2022 review—ISSB
Exposure drafts of first
two proposed Standards
On 31 March 2022 the ISSB launched a 120-day
consultation on its rst two proposed Standards: draft S1
General Requirements for Disclosure of Sustainability-
related Financial Information and draft S2 Climate-
related Disclosures.
The exposure drafts were accompanied by illustrative
guidance, Bases for Conclusion and a Snapshot setting
out an overview of the proposals. Respondents could
either submit a written response or ll out an online
survey. The exposure drafts were also translated into
French, Chinese, Japanese, Korean and Spanish.
High volume of feedback—more than
1,400 responses
The outreach programme during the consultation period
targeted a broad range of stakeholders and focused
on raising awareness of the ISSB, introducing the
exposure drafts in detail and collecting initial reactions
through dialogue, with the aim of soliciting high-quality
input from diverse perspectives. Engagement events
included webinars, conference presentations and bilateral
dialogues, and typically included technical staff presenters
from the teams working on the exposure drafts.
During the comment period ISSB representatives
participated in more than 400 outreach events, engaging
with thousands of stakeholders globally. The ISSB
received 720 responses to the Exposure Draft of S1,
which sets out general requirements for sustainability-
related disclosures, and 690 responses to the Exposure
Draft of S2, which species climate-related disclosures.
6% Academia
10% Accounting/auditors
12% Investors
7% Policy makers and regulators
42%
Companies
17% Public interest organisations
6% Standard-setters
4%
Africa
23% Asia-Oceania
35% Europe
5% Global
28%
North America
5% South/Latin America
Stakeholder group
Comment letter respondents by stakeholder group and geographies
Geographies
36 IFRS Foundation Annual Report - 2022 REVIEW AND 2023 PRIORITIES
2022 review—ISSB (continued)
Redeliberation of proposed Standards
Following the publication of the exposure drafts, the
ISSB considered the feedback received in the comment
letters and redeliberated the proposals in its board
meetings that are held in public. A summary of these
decisions, made by the ISSB in its redeliberations, can
be found on our website.
S1 and S2 will establish the core content requirements for
a complete set of sustainability-related nancial disclosures
to meet the needs of capital markets. Both Standards build
on the recommendations of the Task Force on Climate-
related Financial Disclosures (TCFD) by requiring that
information be provided about governance, strategy, risk
management, and metrics and targets. S1 will require
companies to disclose material information about the
sustainability-related risks and opportunities to which they
are exposed. This information should enable users of
general purpose nancial reports to understand:
• the governance processes, controls and procedures
used to monitor and manage sustainability-related risks
and opportunities;
• the effect of these risks and opportunities on the
company, including its business model and value
chain, and its strategy for addressing these risks and
opportunities;
• the risk management processes used to identify, assess
and manage these risks; and
• how the company measures, monitors and manages
these risks and opportunities using metrics and targets.
S1 will require companies to disclose sustainability-related
nancial information as a part of their general purpose
nancial reports, and therefore at the same time as the
nancial statements. This requirement is designed to
ensure that the nancial statements and sustainability-
related nancial disclosures can be considered together,
highlighting relationships and connections between the
information provided in the nancial statements and the
sustainability-related nancial disclosures.
Alongside the core content requirements, S1 will include
general requirements that support the preparation of
sustainability-related nancial information. The general
requirements in S1 will be familiar to companies that
prepare general purpose nancial statements, because
these requirements were adapted from the IFRS
Accounting Standards IAS 1 Presentation of Financial
Statements and IAS 8 Accounting Policies, Changes in
Accounting Estimates and Errors. This approach was
taken to help ensure that all the information in general
purpose nancial reporting is prepared on a consistent
basis, and to promote connectivity between sustainability-
related nancial information and information in the
nancial statements.
S2 is designed to be used together with S1, and focuses
specically on the disclosure of information about climate-
related risks and opportunities. Using the same approach
as S1, S2 will require companies to centre their disclosures
on the governance, strategy and risk management and
the metrics and targets used to measure, monitor and
manage climate-related risks and opportunities. S2
will require companies to disclose information about
climate-related physical and transition risks and climate-
related opportunities; their resilience to these risks and
opportunities; Scope 1, 2 and 3 greenhouse gas emissions
data; and their transition plans.
Using the CDSB Framework, SASB Standards
and Integrated Reporting Framework
In addition to TCFD, S1 and S2 build on and use the CDSB Framework, the SASB Standards and the
Integrated Reporting Framework. S1 requires companies to provide material information about their
sustainability-related risks and opportunities. In the absence of a specic ISSB Standard, companies are
directed to use the CDSB Framework and SASB Standards to identify sustainability-related topics to report on
and appropriate metrics and targets to meet investors’ information needs.
S2 requires companies to provide industry-specic information about their climate-related risks and
opportunities. S2 includes examples of industry-specic disclosures that are based on the SASB Standards.
S1 describes how the value that a company creates, preserves or erodes for itself and for its investors
and creditors is inextricably linked to the value it creates for other stakeholders, society and the natural
environment. This description builds on concepts from the Integrated Reporting Framework.
37 IFRS Foundation Annual Report - 2022 REVIEW AND 2023 PRIORITIES
2023 priorities—ISSB
• Publishing the rst IFRS Sustainability Disclosure
Standards as soon as possible in 2023.
• Building a base that ensures the successful
application and implementation of these rst two
Standards. The base will include:
o tools to support application of the Standards,
including application guidance;
o development of the IFRS Sustainability Disclosure
Taxonomy so that ISSB Standards are supported
by digital reporting from day one;
o steps to ensure the international applicability of
the SASB Standards referenced through S1;
o connectivity with the IASB (see page 38);
o interoperability with standards from other
organisations such as GRI and EFRAG; and
o research on potential incremental enhancements
to supplement the climate-related disclosures
in S2, including relating to natural ecosystems
and the human capital aspects of the climate
resilience transition (just transition).
• Consulting stakeholders in the rst half of 2023
to determine what technical projects should be
prioritised once S1 and S2 have been issued.
38 IFRS Foundation Annual Report - 2022 REVIEW AND 2023 PRIORITIES
Connectivity between
the IASB and the ISSB
The creation of the ISSB under the umbrella of
the IFRS Foundation received strong support from
stakeholders in recognition of our reputation for:
• robust due process;
• standard-setting expertise on a global scale; and
• the opportunity for connectivity between the IASB
and the ISSB.
Connectivity between the IASB and the ISSB enables
the development of IFRS Standards for general
purpose nancial reports that tell the primary users
of those reports a holistic, comprehensive and
coherent story to facilitate their investment decisions.
Connectivity is important because the audience for
the IASB and ISSB’s work is similar—users of general
purpose nancial reports who make investment
decisions in the capital markets and the preparers who
apply IFRS Standards in preparing those reports.
In 2022 the IASB and the ISSB established the
infrastructure and process to facilitate connectivity
between them, including information sharing,
consultation with each other, consistent drafting
and coordinated stakeholder engagement. With
this structure, as each board undertakes its work
plan, they will seek to maintain compatibility with
the other board’s Standards—that is, to develop
standards that avoid inconsistencies, conflicts, gaps
and unintended overlaps.
In continued support of connectivity, in May 2022 the
Chairs of the IASB and the ISSB actively encouraged
the continued adoption of the Integrated Reporting
Framework, which provides a structure that companies
can use to tell their story in an integrated and
connected way. The Chairs committed to a long-term
role for a corporate reporting framework, incorporating
principles and concepts from the current Integrated
Reporting Framework.
The Chairs also recognised similarities and differences
between the Integrated Reporting Framework and the
IASB’s Exposure Draft Management Commentary and
committed to considering opportunities to address this.
In feedback to the IASB’s Exposure Draft, stakeholders
expressed support for the Management Commentary
project but asked the IASB to work together with the
ISSB to progress the project. In 2023 the ISSB will
consult its stakeholders about its future standard-
setting priorities.
39 IFRS Foundation Annual Report - 2022 REVIEW AND 2023 PRIORITIES
2022 review—operations
The IASB and the ISSB are supported by common
operational functions, including commercial, external
affairs, facilities, nance, human resources, information
technology, legal and marketing teams.
Consolidation and establishment of ISSB
In January 2022 a formal programme was initiated
to support the creation of the ISSB, including the
consolidation of the CDSB and the VRF.
Dubbed One Foundation, the programme is split into
phases. The rst phase took place from January to late
summer 2022 as the Foundation:
• supported the appointment process for the inaugural
members of the ISSB;
• developed the infrastructure and secured the
resources required to establish the ISSB and make it
operational, enabling the ISSB to publish its exposure
drafts, analyse an unprecedented amount of feedback,
establish advisory bodies for the ISSB and convene
the inaugural meeting of the ISSB in 2022;
• completed the legal aspects of the consolidation of
the CDSB (1 February 2022) and the VRF (1 August
2022) into the IFRS Foundation;
• made critical technology changes to support
operations from day one of the consolidation, including
training for legacy staff on IT and collaboration tools;
• signed agreements for additional locations for the
ISSB in Frankfurt, Montreal and Beijing;
• refreshed our brand architecture (see page 18);
• helped ISSB members settle into their new roles and
established processes for running effective ISSB
meetings through the year, drawing heavily on IASB
good practice;
• secured external sources of seed funding for the
ISSB's development and operating costs; and
• integrated the VRF and IFRS Foundation nancial
systems and practices to optimise operational
efciency and to meet applicable compliance
requirements (including relevant audits, payroll
changes, and banking and insurance arrangements).
Integration and expansion: two boards,
One Foundation
The second phase of the One Foundation programme
began in September 2022. This phase is designed to
facilitate the continued evolution of the ISSB alongside
the IASB, and to expand the Foundation’s operations
to support a unied, multi-location organisational
structure. It also includes greater renement of roles
and responsibilities.
Conferences
In addition to a range of outreach events and webinars,
we delivered two major annual events during 2022 to
engage with our stakeholders, enabling participants to
take part in person or online. Both conferences included
presentations and discussions about both the IASB
and ISSB’s work. The IFRS Foundation Conference in
June had more than 400 participants from nearly 60
jurisdictions, and the World Standard-setters Conference
in September had nearly 100 participants from more
than 60 organisations.
40 IFRS Foundation Annual Report - 2022 REVIEW AND 2023 PRIORITIES
2023 priorities—operations
People and organisation
Continue to develop the IFRS Foundation as a great
place to work where people accomplish meaningful goals
as part of an operationally effective, unied team.
Product and market
Provide the operational infrastructure to deliver the
2023 priorities agreed on by the IASB, the ISSB and
operations—broadly, advancing IASB and ISSB standard-
setting, maintaining the IASB and ISSB Standards, and
promoting regulatory adoption and market use of the
Standards globally.
Funding
Work expeditiously towards a sustainable, fair,
diversied and broad-based funding model, including
maintaining an appropriate balance of earned revenue
and contributed revenue.
42 IFRS Foundation Annual Report - GOVERNANCE
AS AT 31 DECEMBER 2022
The Trustees held three regular in-person (or hybrid)
meetings, and three virtual meetings that were scheduled
at short notice as need arose.
Trustees of the IFRS Foundation
Erkki Liikanen (Europe)
Chair
Former Governor of the
Bank of Finland
Second term ends 31
December 2024
Attendance 2022: in-
person 3/3; virtual 3/3
Teresa Ko (Asia-Oceania)
Vice-Chair
Chair of Freshelds
Bruckhaus Deringer China
Second term ends 31
December 2023
Attendance 2022: in-person
3/3; virtual 2/3
Larry Leva (Americas)
Vice-Chair
Former Global Vice
Chairman—Quality, Risk
and Regulatory for KPMG
International
Second term ends 31
December 2023
Attendance 2022: in-person
3/3; virtual 2/3
Sarah J. Al Suhaimi (at large)
Chair of Tadawul (the Saudi Stock Exchange), member of
the Board of Directors of the Saudi Cultural Development
Fund and the Board of Directors of Saudia airline
Second term ends 31 December 2024
Attendance 2022: in-person 3/3; virtual 3/3
Else Bos (Europe)
Member of the Executive Board, Executive Director and
Chair for Prudential Supervision at the Dutch Central Bank
Second term ended 31 December 2022
Attendance 2022: in-person 3/3; virtual 2/3
Colette Bowe (Europe)
Member of the Bank of England’s Financial Policy
Committee and former Chair of the UK Banking Standards
Board
Second term ends 31 December 2023
Attendance 2022: in-person 3/3; virtual 2/3
Alexsandro Broedel (Americas)
Group Chief Financial Ofcer at Itau Unibanco
First term ended 31 December 2022
Attendance 2022: in-person 1/3; virtual 1/3
Jorge Familiar (Americas)
Vice-President and Treasurer of the World Bank
First term ends 31 December 2024
Attendance 2022: in-person 3/3; virtual 2/3
Suresh P. Kana (Africa)
Former Chair of the Financial Reporting Standards
Council of South Africa
Second term ends 31 December 2024
Attendance 2022: in-person 3/3; virtual 3/3
Masamichi Kono (at large)
Former Deputy Secretary General of the Organisation for
Economic Co-operation and Development
First term ends 31 December 2023
Attendance 2022: in-person 3/3; virtual 3/3
Su-Keun Kwak (Asia-Oceania)
Professor of Accounting at Seoul National University
Second term ended 31 December 2022
Attendance 2022: in-person 3/3; virtual 3/3
Michel Madelain (at large)
Former Vice-Chair and President of Moody’s Investors
Service
Second term ends 31 December 2023
Attendance 2022: in-person 3/3; virtual 2/3
43 IFRS Foundation Annual Report - GOVERNANCE
Ross McInnes (Europe)
Chair of Safran
Second term ends 31 December 2023
Attendance 2022: in-person 2/3; virtual 1/3
Joanna Perry (Asia-Oceania)
Non-executive director for several listed, public sector and
private organisations in New Zealand and former Chair of
the IFRS Advisory Council
First term ended 31 December 2022
Attendance 2022: in-person 3/3; virtual 1/3
Robert Pozen (Americas)
Senior lecturer at MIT Sloan School of Management
First term ends 31 December 2023
Attendance 2022: in-person 3/3; virtual 2/3
Vinod Rai (Asia-Oceania)
Former Comptroller and Auditor General of India
Second term ends 31 December 2023
Attendance 2022: in-person 3/3; virtual 2/3
Lucrezia Reichlin (Europe)
Professor of Economics at the London Business School
Second term ends 31 December 2023
Attendance 2022: in-person 3/3; virtual 0/3
Trustees of the IFRS Foundation (continued)
Kenneth Robinson (Americas)
Board member of Paylocity, Abercrombie & Fitch and
Morgan Stanley US Banks
First term ends 31 December 2023
Attendance 2022: in-person 3/3; virtual 3/3
Erhard Schipporeit (Europe)
Independent management consultant and supervisory
board member of various German companies
First term ends 31 December 2023
Attendance 2022: in-person 2/3; virtual 2/3
Keiko Tashiro (Asia-Oceania)
Deputy President at Daiwa Securities
First term ends 31 December 2024
Attendance 2022: in-person 3/3; virtual 3/3
Maria Theolaktidis (Americas)
1
Executive Vice-President, Finance at the Bank of Nova
Scotia
First term ended 31 December 2022
Attendance 2022: in-person 3/3; virtual 2/3
Guangyao Zhu (Asia-Oceania)
Former Vice Finance Minister of the People’s Republic of
China
Second term ended 31 December 2022
Attendance 2022: in-person 1/3; virtual 3/3
New Trustees serving from 1 January 2023
Five new IFRS Foundation Trustees were appointed and will serve from 1 January 2023—Koushik Chatterjee,
Sukjoon Lee, Steven Maijoor, Isabel Saint Malo and Wencai Zhang. The newly appointed Trustees bring wide-
ranging skills and expertise from Asia, Europe and South America, including valuable sustainability skills.
For more information on Trustees see www.ifrs.org/groups/trustees-of-the-ifrs-foundation/#members
Gender split
36% 64%
Female Male
1 IFRS Foundation Trustees reappointed Maria Theolaktidis for a second term beginning 1 January 2023.
44 IFRS Foundation Annual Report - GOVERNANCE
AS AT 31 DECEMBER 2022
The Trustees meet several times in a year and operate through several
committees. These committees met in 2022:
Trustee committees
Activities and decisions:
• reviewed and approved the Foundation’s annual
budget, accounts, three-year plan and related
forecasts
• regularly monitored progress of income and
expenses compared to budget
• reviewed the Foundation’s fundraising and
nancing efforts, and discussed strategies to
increase the resilience of the medium to long-term
funding base for the Foundation
• regularly reviewed the Foundation’s risk reports
and monitored the integrity, adequacy and
effectiveness of the Foundation’s system of risk
management and internal controls
• ensured an appropriate framework for reporting
and accountability
• discussed and approved management’s strategy
for the Foundation’s investment portfolio,
including new investment class portfolio
• received regular compliance reports with respect
to the Foundation’s policies, internal controls and
code of conduct
• discussed legal, tax and employment structures
in relation to the establishment of the ISSB and
the operations of ISSB ofces in Canada and
Germany
• advised the Trustees on whether the
nancial statements are fair, balanced and
understandable
• advised the Trustees on the appointment of
the Foundation’s external auditors
• reviewed and approved the external auditors’
audit plan
• reviewed and discussed the external auditors’
audit ndings
• discussed with the external auditors matters
relating to the provision of non-audit services,
and information about policies and processes
for maintaining independence
• met separately with the external auditors
without the presence of Foundation
management
• the Chair of the Committee also met with the
external auditors on several occasions during
the year
• reviewed the Committee’s terms of reference
to ensure t for purpose
Audit, Finance and Risk Committee
Chair: Larry Leva
Members: Colette Bowe, Alexsandro Broedel, Jorge Familiar, Erhard Schipporeit,
Maria Theolaktidis, Guangyao Zhu
Meetings in 2022: Six
Members of senior management and representatives
of the Foundation’s external auditors attended the
meetings by invitation. The meetings in 2022 were
held in person or virtually and included several special
meetings to consider implications to the Foundation
of the consolidation of the VRF and the operations of
ISSB ofces in Canada and Germany.
45 IFRS Foundation Annual Report - GOVERNANCE
AS AT 31 DECEMBER 2022
The Trustees meet several times in a year and operate through several
committees. These committees met in 2022:
Trustee committees (continued)
Digital and Technology Oversight
Committee
Chair: Suresh Kana
Members: Su-Keun Kwak, Vinod Rai, Lucrezia
Reichlin, Ken Robinson, Erhard Schipporeit
Meetings in 2022: Four
Activities and decisions:
• approved the newly formed Committee’s
Terms of Reference, following the completion
of the Business Processes and Technology
Programme
• received an update on residual activities of
the Business Processes and Technology
Programme, following the programme’s
closure on 1 March 2022
• received regular updates on the ongoing
investment and implementation of digital and
technology strategies
• discussed the technology arrangements
required to support day one of the IFRS
Foundation’s consolidation of the VRF and
received progress updates following the
consolidation
• discussed and approved ongoing work to
consolidate core IT systems for the merged
organisation
• discussed the IFRS Foundation process for
conducting business analysis and how this
can be used as the basis of a consolidated
future digital platform
• considered how data science can be
leveraged to support the IFRS Foundation’s
mission
• discussed progress of the IASB and the
ISSB's digital reporting strategy, including the
request for feedback on the staff draft of the
IFRS Sustainability Disclosure Taxonomy,
exposed for comment in May
Due Process Oversight Committee
Chair: Teresa Ko
Members: Alexsandro Broedel, Masamichi Kono,
Larry Leva, Michel Madelain, Ross McInnes,
Joanna Perry, Robert Pozen, Vinod Rai
Meetings in 2022: Six
Activities and decisions:
• received regular updates on the activities
of the IASB, the ISSB and the IFRS
Interpretations Committee
• considered the process for the IASB's
Third Agenda Consultation before the IASB
published its Feedback Statement
• considered a clarication to the objective,
process and possible outcomes of a PIR
• reviewed the due process undertaken by the
IASB in its PIRs on IFRS 9—Classication
and Measurement, and IFRS 10, IFRS 11 and
IFRS 12
• approved a request for a shortened comment
period for an exposure draft proposing a narrow-
scope amendment to IAS 12 Income Taxes
• approved the due process to be applied by
the ISSB before the Due Process Handbook is
updated to include it
• approved the due process for maintaining and
enhancing the SASB Standards
• oversaw the decision by the ISSB Chair and
the Vice-Chair to publish the exposure drafts
S1 General Requirements for Disclosure of
Sustainability-related Financial Information
and S2 Climate-related Disclosures before the
ISSB was quorate
• considered the staff’s annual reviews of (a) the
IFRS Foundation’s consultative groups, (b) due
process for the educational materials published
by the Foundation to support the consistent
application of IFRS Accounting Standards and
(c) various matters relating to comment letters,
board papers and dialogue with regulators
46 IFRS Foundation Annual Report - GOVERNANCE
Ethics Committee
Chair: Else Bos
Members: Larry Leva, Vinod Rai, Maria
Theolaktidis
Meetings in 2022: Two
Activities and decisions:
The committee met on an ad hoc basis to review
and provide condential advice to the Trustees
on ethical questions as and when they arose.
Executive Committee
Chair: Erkki Liikanen
Members: Else Bos, Colette Bowe, Suresh Kana,
Teresa Ko, Larry Leva, Michel Madelain, Lucrezia
Reichlin
Meetings in 2022: Seven
Activities and decisions:
• provided oversight and strategic direction
for the consolidation of the IFRS Foundation
with the CDSB and the VRF
• provided oversight and strategic direction to
the One Foundation programme
• discussed strategies to increase the
resilience of the medium- to long-term
funding base for the IFRS Foundation
• considered proposals to evaluate the operating
procedures of the IASB and the ISSB
• approved locations for the Trustee meetings
in 2023
Human Capital Committee
Chair: Colette Bowe
Members: Sarah Al Suhaimi, Jorge Familiar,
Joanna Perry, Robert Pozen, Keiko Tashiro
Meetings in 2022: Nine
Activities and decisions:
• made decisions on the annual review of
remuneration
• approved an updated code of conduct for
members of the boards and the leadership
team
• approved principles for determining the ISSB
member remuneration package across the
multiple locations
• discussed the IASB and ISSB processes
for evaluation (self-assessment of their
effectiveness carried out every year)
• agreed recommendations for revising the
Trustees body evaluation (self-assessment
of their effectiveness carried out every two
years)
• discussed and provided advice on people,
culture and change management implications
arising from the establishment of the ISSB and
the multi-location model
• approved the appointment of a third-party
supplier to support the IFRS Foundation in its
work to develop and embed an appropriate
culture across the consolidated organisation
and all its locations
Nominating Committee
Chair: Michel Madelain
Members: Else Bos, Colette Bowe, Suresh Kana,
Masamichi Kono, Teresa Ko, Ken Robinson
Meetings in 2022: Six
Activities and decisions:
• recommended the appointment or
reappointment of six Trustees
• recommended the appointment or
reappointment of eight IASB members
• recommended the appointment or
reappointment of six IFRS Interpretations
Committee members
• recommended the appointment of Linda
Mezon-Hutter as Vice-Chair of the IASB
• completed the appointment process for the
inaugural members of the ISSB, including
recommending the appointment of Sue Lloyd
and Jingdong Hua as Vice-Chairs
• recommended the appointment or reappointment
of 26 members of the IFRS Advisory Council
Trustee committees (continued)
47 IFRS Foundation Annual Report - GOVERNANCE
Key organisational risks
The IFRS Foundation’s Executive Risk Committee has
the day-to-day responsibility for identifying, managing and
mitigating risks faced by the IFRS Foundation that may
inuence the achievement of our operational and strategic
objectives. The Committee has a robust process in place
to assess the impact of risks on the IFRS Foundation and
to set the appropriate risk appetite in the activities the
IFRS Foundation undertakes.
The Committee comprises ve to seven senior executives
representing all parts of the IFRS Foundation. The
Committee meets every two months to identify, assess
and monitor key risks to the IFRS Foundation and
consider appropriate mitigating actions. Identication
and assessment of individual risks is embedded in
management and operational processes throughout the
organisation.
The Trustees’ Audit, Finance and Risk Committee
provides oversight of the IFRS Foundation’s risk
management processes and systems and reports to the
full board of the IFRS Foundation’s Trustees, who bear
the ultimate responsibility for monitoring risk.
2022 was characterised by rapid and far-reaching
change, including the creation of the ISSB and the
opening of new ofces, the consolidation of the CDSB
and the VRF into the IFRS Foundation, the publication
of the ISSB’s rst two exposure drafts and progress
on several large IASB projects. These changes have
heightened the risks set out below.
People
Our people are the IFRS Foundation’s greatest asset.
Failure to attract and retain high-calibre people at all
levels and in all locations would have an adverse impact
on achieving our objectives.
Considering that the signicant changes in 2022
followed two years of disruption from the covid-19
pandemic, we have placed particular focus on staff
wellbeing.
Technological infrastructure
The IFRS Foundation's IT infrastructure underpins all
our functions. Failure to protect our IT infrastructure
and stored data from cyber hacks, phishing campaigns,
system failure and/or human error would result in damage
to our operations.
Brand
The IFRS Foundation’s reputation as a professional
global standard-setter in accounting and sustainability
disclosure is critical to achieving acceptance for our
work. Failure to protect this reputation would endanger
the achievement of the IFRS Foundation’s objectives.
The IFRS Foundation requires a sufcient level of
global support from public authorities and relevant
stakeholder groups.
Long-term nancial stability
External shocks and trends affecting our income, cash
ow or reserves would put the IFRS Foundation’s
nancial stability at risk. The nancial risk management
section of this annual report (see page 85) provides an
overview of the mitigating actions undertaken in this area
to protect the IFRS Foundation’s nancial stability.
Product
The IFRS Foundation’s mission depends on ensuring
that the Foundation’s products—IFRS Accounting
Standards, future IFRS Sustainability Disclosure
Standards, the IFRS Accounting Taxonomy and the
future IFRS Sustainability Disclosure Taxonomy—are
of the highest quality and meet stakeholders’ needs,
connect to each other and are interoperable with other
organisations’ sustainability disclosure requirements.
Failure, or perceived failure, to deliver and maintain our
products poses a risk to the organisation.
Similarly, failure to achieve consistent application of IFRS
Accounting Standards, IFRS Sustainability Disclosure
Standards and the corresponding taxonomies would
undermine the benets of global nancial reporting. There
is also a risk that jurisdictions would not require the use of
IFRS Sustainability Disclosure Standards and the IFRS
Sustainability Disclosure Taxonomy.
49 IFRS Foundation Annual Report - FINANCIALS
Introduction to the nancial statements
SUMMARY OF FINANCIAL RESULTS 2022
During 2022 the IFRS Foundation consolidated with
the Climate Disclosure Standards Board (CDSB) and
the Value Reporting Foundation (VRF) and established
new ISSB subsidiaries in Canada and Germany. The
consolidated nancial statements include the IFRS
Foundation and its subsidiaries (the Foundation) as at 31
December 2022 and for the period from 1 August 2022.
The Foundation is reporting income before tax of £8.5
million for 2022 (2021: £354,000 loss). The year-on-year
increase of £8.9 million is mainly attributable to the gain
on consolidation of the VRF of £7.8 million (Note 2).
Income from contributions and earned revenue at £48.7
million (2021: £28.8 million) increased by 69% year on
year and includes funding of £20.1 million for establishing
the ISSB and supporting the ISSB ofces in Frankfurt,
Montreal and San Francisco. Income comprised:
• contributed revenue: £32.5 million (2021: £17.3
million 87.9%);
• earned revenue: £16.0 million (2021: £11.1 million
44.1%); and
• other income: £213,000 (2021: £370,000 42.4%).
Total operating expenses increased from £28.8 million
to £48.0 million year on year. The overall increase of
66.7% was due to costs for the new ISSB members
and staff, additional operating costs arising from the
consolidation of the VRF and new ofces, as well as
legal and professional fees related to the establishment
of the ISSB. In 2022 we again held in person meetings
which is reected in travel and meeting costs. Ination
also contributed to an increase in operating costs.
Expenses comprised:
• board members and staff costs: £30.7 million (2021:
£20.2 million 52.0%);
• other technical and operating costs: £10.5 million
(2021: £3.7 million 183.8%);
• earned revenue activities: £2.8 million (2021: £2.1
million 33.3%);
• Trustee oversight and advisory bodies: £1.4 million
(2021: £702,000 99.4%); and
• premises, occupancy and related expenses: £2.6
million (2021: £2.2 million 18.2%).
Net income from nancing costs including exchange
gains and losses was £104,000 (2021: net loss
£319,000). Net exchange gains of £652,000 (2021:
£205,000) were mainly due to foreign exchange
revaluations of US dollar and euro cash balances at
year end.
Fair value losses on investments (net of interest income)
of £420,000 (2021: £382,000) reect the fall in value of
government bond prices due to rising interest rates.
After accounting for tax charges and the release of
the deferred tax assets, and exchange differences on
translating foreign operations of £163,000 (2021: £nil) the
Foundation is reporting comprehensive income for 2022
of £8.3 million (2021: comprehensive loss £806,000).
Net assets have increased year on year from £40.7
million to £49.0 million, largely due to the cash received
as part of the consolidation with the VRF.
Income 2022
Operating expenses 2022
Income and expenditure highlights
2022
Income
Operating
expenses
£28.8 million
£48.0 million
£28.8 million
Other income
1%
Premises,
occupancy
and related
expenses
5%
Contributed
revenue
66%
Board
members and
staff costs
64%
Other technical and
operating costs
22%
Earned
revenue
33%
Trustee
oversight
and advisory
bodies
3%
£48.7 million
2022
2021
Earned revenue
activities
6%
2021
50 IFRS Foundation Annual Report - FINANCIALS
2022 review
Establishment of the ISSB
and multiple locations
In November 2021 the Trustees of the IFRS Foundation
published a revised Constitution to enable the creation
of the ISSB within the Foundation’s governance
structure. The key steps completed in 2022 for
establishing the global presence of the ISSB were:
• the consolidation of the Climate Disclosure
Standards Board (CDSB) with the IFRS Foundation;
• the consolidation of the Value Reporting Foundation
(VRF) with the IFRS Foundation;
• the establishment of new ofces in multiple
locations, including in Europe and the Americas, to
support the ISSB and its engagement with regional
stakeholders; and
• the appointment of the ISSB members and
recruitment of technical and operations staff.
Over £15.0 million of new ISSB grants and
contributions were secured in 2022, including seed
funding from consortiums of public and private entities
in the hosting countries of ISSB ofces―Canada and
Germany―as well as contributions from China, Japan,
Korea, New Zealand and the United Kingdom.
In creating the ISSB, the Foundation has expanded and
now operates from ofces in London, Tokyo, Frankfurt,
Montreal and San Francisco. The Foundation plans to
open a new ofce in Beijing in 2023.
The creation of the ISSB and related consolidations
of the CDSB and VRF have increased the number
of Foundation employees. During 2022 headcount
increased from 160 to 298.
The ISSB members and technical staff are mostly
based in the new ofces. The IASB members and
technical staff remain mostly based in the London
ofce, with a small number based in Tokyo.
Income
The Foundation aims to create a reliable revenue base
to build nancial stability and sustainability for the
Foundation’s long-term operations. That revenue base
should provide:
• diversied, multi-year, exible funding for changing
circumstances;
• unrestricted funds that allow the Foundation to fully
fund operating costs and prevent cash-ow issues; and
• a balanced combination of contributed revenue and
earned revenue.
In 2022 the Foundation received 66% of income
from contributed revenue sources and 34% from
earned revenue and other sources. Contributed
revenue includes contributions from jurisdictions, seed
funding from the Canadian and German consortiums,
philanthropic grants and contributions from companies
including accounting rms. Earned revenue was
generated from publications and subscription services,
licensing of intellectual property, membership fees
for the ISSB Sustainability Alliance, education
programmes and conference events.
Income for the year at £48.7 million was a £19.9
million increase year on year. The signicant change
was primarily due to ISSB funding which includes
£15.4 million of ISSB seed funding and £4.7 million
from the earned revenue programmes novated to the
Foundation as part of the consolidation of the VRF.
IASB contributions in 2022 have remained broadly
comparable with the prior year, with an overall
decrease of £270,000. The decrease is mainly
because European Commission grant funding reduced
by 15% and no direct funding was received from
Norway or Russia. This was offset to some extent by
other funders increasing their annual contribution by
5%, as well as positive foreign exchange differences
for contributions received in US dollar and euro.
Earned revenue from the licensing of IASB intellectual
property was comparable with prior year, with 75% of
licensing fees being from international accounting rms.
Earned revenue from the sale of IASB publications
and subscriptions saw a marginal increase, which was
mainly related to sales of digital subscriptions.
Following two years of virtual-only events, the
conference events in 2022 reverted to being in person
(with an additional online element), and income
generated from conference events increased by 60%.
The Foundation expects that with new events planned
for the year ahead, such as the IFRS Sustainability
Symposium, income from conference events will
increase by a similar amount in 2023.
Gain on consolidation of
Value Reporting Foundation
In the context of the consolidation of the VRF, the
assets and liabilities of the VRF were transferred to the
IFRS Foundation for nil consideration. The fair value
of the assets received was higher than the fair value of
the liabilities assumed and a gain on consolidation of
£7.8 million has been recognised in 2022.
51 IFRS Foundation Annual Report - FINANCIALS
2022 review (continued)
Operating expenses
Annual expenditure in 2022 is signicantly higher than
in 2021, with the most sizeable increase being for the
establishment of the multiple location ISSB. ISSB related
costs are mainly staff costs and legal and professional
fees for establishing the new ofce locations―all of
which was funded by ISSB seed funding.
Annual expenditure breaks down into the three key
expense categories of staff costs, ofce costs and travel
and engagement costs.
Staff costs overall are the most signicant cost for the
Foundation and at £32.3 million (2021: £21.3 million) are
67% of the Foundation’s cost base. The annual increase
of £11.0 million includes annual pay rises but is mainly
attributable to the new ISSB members and technical
staff who include staff that previously worked for the
CDSB and VRF. Staff costs in 2022 include retention
bonus amounts payable to employees of £600,000
(2021: £nil).
Other technical and operating costs increased overall by
£6.8 million, which is mostly due to:
• costs of £2.7 million for legal and tax advice
related to the setup of the multi-location model,
and recruitment and vetting fees for the new ISSB
members and staff;
• an increase in ofce costs of £1.7 million related to
the additional costs arising from the consolidation
of the VRF, as well as costs for the new ofces in
Canada and Germany. Ination also contributed to
increased costs for facilities, energy, insurance and
rates; and
• an increase in travel and meeting costs of £1.7
million. Travel in the prior year was very limited by
the pandemic, but in 2022 we again had in-person
meetings. Travel costs were higher also because of
the establishment of the ISSB.
Expenses related to earned revenue activities increased
by £740,000 year on year due to ination-related
increases for publication costs and overheads, as well
as the additional costs of £533,000 related to the new
ISSB earned revenue programmes.
Investments
The Foundation invests the majority of its surplus funds
in xed-interest, highly liquid investments, all of which
are short duration (two to ve years) and high credit
quality. In June 2022 the Foundation invested £2.5
million into the Barclays Medium-Low Risk Multi Asset
Class Sustainable Portfolio. The portfolio expands the
asset class range that the Foundation invests in by
introducing new assets such as equities, commodities
and real estate.
Fair value losses on investments (net of interest
income) of £420,000 (2021: £382,000) reect the
fall in value of government bond prices due to rising
interest rates.
Reserves policy
The objective of the Foundation’s reserves policy is
to hold an appropriate level of accessible funds while
ensuring the Foundation is making timely and strategic
use of its operating funds. The Foundation holds
reserves to provide cover for unexpected changes in
income and expenditure, allowing the Foundation to
continue activities in the event of any unforeseen costs
or shortfall in income (particularly from the voluntary
elements of its funding). The reserve fund may also
be used for one-time, nonrecurring expenses to build
long-term capacity, such as staff development, research
and development, or investment in infrastructure. The
reserve fund may also be used for opportunities that
further the mission of the organisation. Reserve funds
are not intended to replace a permanent loss of funds or
eliminate an ongoing budget gap.
Net assets have increased year on year from £40.7
million to £49.0 million, largely due to the cash received
as part of the consolidation with the VRF.
52 IFRS Foundation Annual Report - FINANCIALS
2022 review (continued)
2023 outlook
The Foundation appreciates the continuing support
from funding providers listed on pages 90 to 94. The
Foundation is committed to ensuring its operating
expenditure is managed prudently and effectively
and it will pursue further initiatives to enhance the
organisation’s operational stability and efciency.
The Foundation’s 2023 budget, as approved by the
Trustees, estimates that in 2023 ISSB funding will
increase to around £40.0 million, and IASB funding
will remain broadly comparable with 2022. Operating
expenses in 2023 are also expected to increase
because they will reect a full year of costs for the
ISSB, including operating costs for the ISSB ofces in
Frankfurt, Montreal and Beijing, which will be funded
by seed funding from the host countries (Note 3).
The Foundation has assumed a level of travel and
engagement in 2023 appropriate to achieve operational
effectiveness and control, particularly with the
establishment of the new ISSB operations. We expect
the cost/benet considerations for travel to evolve from
2024 as the ISSB becomes better established and the
post-pandemic return to work stabilises.
The Foundation has established a Trustee-level task
force that, in the year ahead, will work closely with
Foundation staff to review our internal sustainability
strategy, policies, management systems and reporting.
We are putting governance processes in place to
deliver this important work.
Going concern
The Foundation has reviewed its nancial performance
and the general reserves position for 2022. The
Foundation’s planning process has taken into
consideration the current and forecasted economic
climate and its potential impact on the Foundation’s
various sources of income and planned expenditure.
In 2023 the IFRS Foundation Trustee Funding
Committee was established, which has responsibility
for the ongoing funding activities of the Foundation. The
committee met for the rst time in March 2023 and it
will focus on building the medium to long-term funding
strategy for both contributed and earned revenue.
There continues to be strong global support for the
Foundation and the work of both the IASB and the ISSB.
To support the ISSB and its new ofces, the Foundation
has ve-year seed-funding commitments from Canada,
Germany and Japan as well as other multi-year funding
commitments from Korea, New Zealand and the United
Kingdom. A Memorandum of Understanding with China
to provide support was signed in December 2022.
The Foundation has reviewed the nancial cash ow
projections for the 18 months after the end of the
reporting period and has performed stress testing on
these cash ows. The Foundation has a reasonable
expectation that it will be able to continue to operate and
meet its liabilities as they fall due for the 18 months after
the end of the reporting period.
Having regard to all relevant circumstances and the
substantial reserve funds held by the Foundation, the
Trustees consider it appropriate to prepare the nancial
statements on a going concern basis.
Trustee approval
These nancial statements cover the year ended
31 December 2022. They have been prepared in
compliance with the IFRS Accounting Standards that
were effective on 31 December 2022.
The nancial statements were approved and authorised
for issue by the Trustees of the Foundation on 31 March
2023. At that date, there had been no events since 31
December 2022 that required an adjustment to the
nancial statements.
Erkki Liikanen
Chair of the IFRS Foundation Trustees
53 IFRS Foundation Annual Report - FINANCIALS
Trustees’ responsibilities statement
The Trustees are responsible for preparing the annual
nancial statements in accordance with applicable law
and regulations.
The Trustees have elected to prepare nancial
statements that give a true and fair view of the state
of affairs and prot or loss of the group for that period
in accordance with IFRS Accounting Standards. In
preparing these nancial statements, the Trustees have:
• selected suitable accounting policies and then
applied them consistently;
• made judgements and accounting estimates that
are reasonable and prudent;
• followed IFRS Accounting Standards with no
material departures disclosed; and
• prepared the nancial statements on the going
concern basis.
The Trustees are responsible for keeping adequate
accounting records that are sufcient to show and
explain the Foundation's transactions and disclose with
reasonable accuracy at any time the nancial position
of the Foundation and enable them to ensure that the
nancial statements comply with applicable laws and
regulations. They are also responsible for safeguarding
the assets of the Foundation and hence for taking
reasonable steps for the prevention and detection of
fraud and other irregularities.
The Trustees are responsible for the maintenance
and integrity of the corporate and nancial information
included on the Foundation's website. Legislation
in jurisdictions governing the preparation and
dissemination of nancial statements may differ from
legislation in other jurisdictions.
54 IFRS Foundation Annual Report - FINANCIALS
Independent auditor’s report to the
Trustees of IFRS Foundation
Our opinion on the nancial statements is unmodied
We have audited the nancial statements of IFRS Foundation (‘Foundation’) and its subsidiaries (the ‘group’)
for the year ended 31 December 2022, which comprise the consolidated statement of comprehensive
income, consolidated statement of changes in retained surplus, consolidated statement of nancial position,
consolidated statement of cash ows and notes to the group nancial statements, including a summary of
signicant accounting policies. The nancial reporting framework that has been applied in their preparation
is applicable law and International Financial Reporting Standards (IFRSs) as issued by the International
Accounting Standards Board (IASB).
In our opinion:
• The nancial statements give a true and fair view of the nancial position of the group’s affairs as at 31
December 2022 and of its income for the year then ended in accordance with IFRSs as issued by the
IASB.
Opinion
Basis for opinion
We conducted our audit in accordance with International
Standards on Auditing (UK) (ISAs (UK)) and applicable
law. Our responsibilities under those standards are
further described in the ‘Auditor’s responsibilities for the
audit of the group nancial statements’ section of our
report. We are independent of the group in accordance
with the ethical requirements that are relevant to our
audit of the group nancial statements in the UK,
including the FRC’s Ethical Standard, and we have
fullled our other ethical responsibilities in accordance
with these requirements. We believe that the audit
evidence we have obtained is sufcient and appropriate
to provide a basis for our opinion.
Conclusions relating to going concern
We are responsible for concluding on the
appropriateness of the Trustees’ use of the going
concern basis of accounting and, based on the audit
evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast
signicant doubt on the group’s ability to continue as a
going concern. If we conclude that a material uncertainty
exists, we are required to draw attention in our report
to the related disclosures in the nancial statements
or, if such disclosures are inadequate, to modify the
auditor’s opinion. Our conclusions are based on the audit
evidence obtained up to the date of our report. However,
future events or conditions may cause the group to
cease to continue as a going concern.
In our evaluation of the Trustees’ conclusions, we
considered the inherent risks associated with the group’s
business model including effects arising from macro-
economic uncertainties such as the cost of living crisis,
increasing ination, increasing interest rates and other
macro-economic circumstances relevant to the group,
we assessed and challenged the reasonableness
of estimates made by the Trustees and the related
disclosures and analysed how those risks might affect
the group’s nancial resources or ability to continue
operations over the going concern period.
In auditing the nancial statements, we have concluded
that the Trustees’ use of the going concern basis of
accounting in the preparation of the nancial statements
is appropriate.
Based on the work we have performed, we have not
identied any material uncertainties relating to events
or conditions that, individually or collectively, may cast
signicant doubt on the group’s ability to continue as a
going concern for a period of at least twelve months from
when the nancial statements are authorised for issue.
The responsibilities of the Trustees with respect to going
concern are described in the ‘Responsibilities of Trustees
for the nancial statements’ section of this report.
55 IFRS Foundation Annual Report - FINANCIALS
Independent auditor’s report to the
Trustees of IFRS Foundation (continued)
Overview of our audit approach
Overall materiality:
Group: £1m, which represents 2% of the group’s total income.
Key audit matters were identied as:
• Fair value of assets and liabilities acquired upon merger with
the Value Reporting Foundation (a new key audit matter)
• Unpaid contributions (a new key audit matter)
• Our auditor’s report for the year ended 31 December 2021
included one key audit matter that has not been reported as
a key audit matter in our current year’s report. This relates to
Subscriptions income. Following our work in the prior year and
based on our understanding of the entity, we do not believe
there to be a signicant risk of fraud or error in this area.
Key changes in the scope of the audit from prior year include
utilising component auditors to audit the assets and liabilities
acquired as part of the opening balances in the merger with
the Value Reporting Foundation. The group engagement team
reviewed all work performed by the component auditors.
Our approach to the audit
Key audit matters
Key audit matters are those matters that, in our
professional judgement, were of most signicance in
our audit of the group nancial statements of the current
period and include the most signicant assessed risks
of material misstatement (whether or not due to fraud)
that we identied. These matters included those that
had the greatest effect on: the overall audit strategy;
the allocation of resources in the audit; and directing
the efforts of the engagement team. These matters
were addressed in the context of our audit of the group
nancial statements as a whole, and in forming our
opinion thereon, and we do not provide a separate
opinion on these matters.
DESCRIPTION
DISCLOSURES
AUDIT
RESPONSE
OUR
RESULTS
KAM
Key
audit
matters
Scoping
Materiality
56 IFRS Foundation Annual Report - FINANCIALS
In the graph below, we have presented the key audit matters, signicant risks and other risks relevant to the audit.
Key audit matter
Signicant risk
Low
Low
Subscription
income
Licenses and
royalties income
Management
override of
controls
Unpaid
contributions
Fair value of assets
and liabilities acquired
upon merger with Value
Reporting Foundation
High
High
Potential
nancial
statement
impact
Extent of management judgement
Key audit matter How our scope addressed the matter
Fair value of assets and liabilities acquired
upon merger with Value Reporting
Foundation
We identied the fair value of the assets
and liabilities acquired upon merger with the
Value Reporting Foundation as one of the
most signicant assessed risks of material
misstatement due to fraud and error.
The IFRS Foundation entered into a business
combination during the year with the Value
Reporting Foundation.
This was considered a key audit matter due to
the magnitude of the transaction and because
it ultimately changed the structure of the IFRS
Foundation.
Additionally, this merger is considered a key
audit matter due to the signicant management
judgements and estimates that are required
in accounting for business combinations
including estimating the fair value of any
assets acquired and completeness of liabilities
and their considerations of any recognised
intangible assets.
In responding to the key audit matter, we performed the following
audit procedures:
• Reading management’s assessment as to why the merger with
Value Reporting Foundation was required to be accounted for
using the acquisition method;
• Challenging management’s assessment on why there were no
separately identiable intangible assets as required under IFRS3
and utilised our internal experts to assist in this review;
• Upon challenging management’s key assumptions in the
purchase price allocation, recalculated any gain upon acquisition
and considered its implications;
• Challenging management on the valuation of fair market value
of any assets acquired and the completeness of any liabilities
acquired during the acquisition of Value Reporting Foundation;
• For assets acquired as part of the merger, agreeing the valuation
and existence of assets to relevant supporting documentation;
• Performing procedures to address the completeness of any
liabilities acquired at the acquisition date by inspecting payments
post merger to conclude on whether expenditures related to the
period as at 31 July 2022; and
• Agreeing these signicant opening balances to sufcient,
appropriate audit evidence including sales invoices, contracts,
purchase invoices and bank statements.
Independent auditor’s report to the
Trustees of IFRS Foundation (continued)
57 IFRS Foundation Annual Report - FINANCIALS
Key audit matter How our scope addressed the matter
Relevant disclosures in the Annual Report
and Accounts 2022
The group’s accounting policies on the
measurement of any assets and liabilities acquired
as part of the merger with Value Reporting
Foundation are shown in note 2 to the nancial
statements and related disclosures are included
within this note.
Our results
Our work did not identify any material misstatements
in respect of the accounting treatment of the business
combination. We are satised that the accounting policies are
appropriate, consistent with similar policies already adhered to
by the group and in line with IFRS.
Unpaid contributions
We identied the occurrence of unpaid
contributions as a signicant risk, which was one
of the most signicant assessed risks of material
misstatement due to fraud or error.
A signicant proportion of income relates
to voluntary contributions, with the largest
contribution relating to the European Union (EU)
grant. They are recognised as income on a
receipts basis, exceptions being those received
post year-end which have been designated by the
contributor as relating to the previous year. Unpaid
contributions were considered a signicant risk
due to the signicant management judgements
involved in determining the recoverability and the
entitlement of this income by the group.
In responding to the key audit matter, we performed the
following audit procedures:
• Inspecting expenses incurred to ensure the claims are in
line with allowable expenses and in accordance with the EU
grant agreement;
• Inspecting invoices to verify that the contributions related to
the correct period, before agreeing funds received to post
year end bank statements to conrm the receipt of cash;
• Inspecting correspondence with the donor to determine if
they had provided a rm commitment to the group to pay
the funds due and that the contribution related to the correct
nancial year;
• Performing a non-substantive analytical review of
contributions income year on year by contributor and
jurisdiction to identify any unusual movements in balances;
and
• Checking post year end bank statements to determine if
any amounts received related to contributions for the year
ended 31 December 2022 that had not been recognised
and traced these to the contributions schedule to ensure
that they had been correctly accounted for.
Relevant disclosures in the Annual Report
and Accounts 2022
The group’s accounting policy on revenue is
shown in note 3 (Contributed revenue) to the
nancial statements and related disclosures are
included within this note.
Our results
Our work did not identify any material misstatements
concerning unpaid revenue from contributions. We are
satised that the accounting policies are appropriate,
consistently applied from previous years and in line with IFRS.
Independent auditor’s report to the
Trustees of IFRS Foundation (continued)
58 IFRS Foundation Annual Report - FINANCIALS
Materiality measure Group
Materiality for nancial
statements as a whole
We dene materiality as the magnitude of misstatement in the nancial statements
that, individually or in the aggregate, could reasonably be expected to inuence the
economic decisions of the users of these nancial statements. We use materiality
in determining the nature, timing and extent of our audit work.
Materiality threshold
Signicant judgements made
by auditor in determining the
materiality
£1m which is 2% of income.
In determining materiality, we made the following signicant judgement, that 2% of
income is considered the most appropriate benchmark because the group is not a
prot-oriented entity
Materiality for the current year is higher than the level that we determined for the
year ended 31 December 2021 due to the additional income that resulted from the
merger with Value Reporting Foundation on 31 July 2022.
Performance materiality
used to drive the extent of
our testing
We set performance materiality at an amount less than materiality for the nancial
statements as a whole to reduce to an appropriately low level the probability that
the aggregate of uncorrected and undetected misstatements exceeds materiality
for the nancial statements as a whole.
Performance materiality
threshold
£0.74m which is 75% of nancial statement materiality.
Signicant judgements made
by auditor in determining the
performance materiality
In determining materiality, we made the following signicant judgements that the
IFRS Foundation has stable business activities and a stable control environment,
that limited adjustments were identied during previous years’ audit engagements
and that there were limited control ndings identied in previous audit
engagements.
Communication of
misstatements to the audit
committee
We determine a threshold for reporting unadjusted differences to the audit
committee.
Threshold for communication £0.05m and misstatements below that threshold that, in our view, warrant reporting
on qualitative grounds.
Our application of materiality
We apply the concept of materiality both in planning and performing the audit, and in evaluating the effect of identied
misstatements on the audit and of uncorrected misstatements, if any, on the nancial statements and in forming the
opinion in the auditor’s report.
Materiality was determined as follows:
Independent auditor’s report to the
Trustees of IFRS Foundation (continued)
59 IFRS Foundation Annual Report - FINANCIALS
The graph below illustrates how performance materiality interacts with our overall materiality and the tolerance for
potential uncorrected misstatements.
Income
£48.68m
FSM: Financial statements materiality PM: Performance materiality TFPUM: Tolerance for potential uncorrected misstatements
FSM
£1m, 100%
PM
£0.74m, 75%
TFPUM
£0.26m, 25%
Overall materiality
An overview of the scope of our audit
We performed a risk-based audit that requires an
understanding of the group’s business and in particular
matters related to:
Understanding the group, its components, and their
environments, including group-wide controls
• the engagement team obtained an understanding
of the group and its environment, including group-
wide controls, and assessed the risks of material
misstatement at the group level; and
• gained an understanding of the nancial reporting
and accounts production process.
Identifying signicant components
• the Foundation, was subject to audit under an audit
of the nancial information of the component using
component materiality approach in the UK;
• having assessed the signicance of the group’s
components by reference to total income for the
year (excluding the acquisition gain, referred to in
the accounts as VRF business combination, upon
the merger with the Value Reporting Foundation),
no other components were assessed as being
individually signicant to the group; and
• the Value Reporting Foundation UK and Value
Reporting Charity UK (which were considered
subsidiaries of the IFRS Foundation at year end
since the IFRS Foundation became the sole
member organisation of the three Value Reporting
Foundation afliated entities as at 31 July 2022)
were considered as being not signicant but material
and under our instruction and specied audit
procedures on these components were performed
by the component auditor.
Audit
approach
No. of
components
% coverage
revenue
% coverage
total assets
Full-scope
audit
1 99% 99%
Specic-
scope audit
2 1% 1%
Independent auditor’s report to the
Trustees of IFRS Foundation (continued)
Communications with component auditors
• We communicated with our component auditors
via group instructions and phone calls during the
planning, eldwork and completion stages of the
audit.
60 IFRS Foundation Annual Report - FINANCIALS
Changes in approach from previous period
• This was the rst year that the IFRS entered into
a business combination. The engagement team
performed a full-scope audit of the IFRS Foundation,
however, we engaged component auditors to
perform specic-scope audit procedures in order
to address procedures required within our full-
scope audit. This was different to the prior year. No
component auditors were engaged during the prior
year to assist with audit procedures since the group
did not have any subsidiaries in the prior year.
Other information
The other information comprises the information
included in the annual report, other than the nancial
statements and our auditor’s report thereon. The
Trustees are responsible for the other information
contained within the annual nancial statements. Our
opinion on the nancial statements does not cover the
other information and we do not express any form of
assurance conclusion thereon.
Our responsibility is to read the other information and,
in doing so, consider whether the other information is
materially inconsistent with the nancial statements
or our knowledge obtained in the audit or otherwise
appears to be materially misstated. If we identify
such material inconsistencies or apparent material
misstatements, we are required to determine whether
there is a material misstatement of the nancial
statements or a material misstatement of the other
information. If, based on the work we have performed,
we conclude that there is a material misstatement of this
other information, we are required to report that fact.
We have nothing to report in this regard.
Responsibilities of Trustees
As explained more fully in the Trustees’ responsibilities
statement, Trustees are responsible for the preparation
of the nancial statements and for being satised that
they give a true and fair value, and for such internal
control as the Trustees determine is necessary to
enable the preparation of nancial statements that are
free from material misstatement whether due to fraud
or error.
In preparing the consolidated nancial statements, the
Trustees are responsible for assessing the group’s
ability to continue as a going concern, disclosing, as
applicable, matters related to going concern and using
the going concern basis of accounting unless the
Trustees either intend to liquidate the group or to cease
operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the
nancial statements
Our objectives are to obtain reasonable assurance
about whether the nancial statements as a whole
are free from material misstatement, whether due to
fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high
level of assurance, but is not a guarantee that an audit
conducted in accordance with ISAs (UK) will always
detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate,
they could reasonably be expected to inuence the
economic decisions of users taken on the basis of
these nancial statements.
Irregularities, including fraud, are instances of non-
compliance with laws and regulations. The extent
to which our procedures are capable of detecting
irregularities, including fraud, is detailed below:
• The group is subject to many laws and regulations
where the consequences of non-compliance could
have a material effect on amounts or disclosures
in the group nancial statements. We identied the
following laws and regulations as the most likely
to have a material effect if non-compliance were to
occur; nancial reporting legislation, tax legislation,
anti-bribery legislation and employment law;
• We identied areas of laws and regulations that
could reasonably be expected to have a material
effect on the nancial statements from our general
sector experience and through discussion with the
Trustees, and from inspection of the group's Board
minutes and legal and regulatory correspondence.
We discussed the policies and procedures regarding
compliance with laws and regulations with the
Trustees;
Independent auditor’s report to the
Trustees of IFRS Foundation (continued)
61 IFRS Foundation Annual Report - FINANCIALS
• Based on the results of our risk assessment we
designed further audit procedures to identify non-
compliance with such laws and regulations identied
above. These procedures were performed at all
components within the scope of our audit. Our
procedures also involved journal entry testing,
with a focus on journals meeting our dened risk
criteria based on our understanding of the business;
enquiries of legal counsel and management;
and consideration of the volume and nature of
complaints received by whistleblowing during the
year;
• These audit procedures were designed to provide
reasonable assurance that the nancial statements
were free from fraud or error. The risk of not
detecting a material misstatement due to fraud is
higher than the risk of not detecting one resulting
from error and detecting irregularities that result from
fraud is inherently more difcult than detecting those
that result from error, as fraud may involve collusion,
deliberate concealment, forgery or intentional
misrepresentations;
• The engagement partner’s assessment of the
appropriateness of the collective competence and
capabilities of the engagement team included
consideration of the engagement team's:
o understanding of, and practical experience
with audit engagements of a similar nature and
complexity through appropriate training and
participation
o knowledge of the industry in which the client
operates
o understanding of the legal and regulatory
requirements specic to the entity/regulated entity
including:
• the provisions of the applicable legislation;
• the regulator’s rules and related guidance,
including guidance issued by relevant
authorities that interprets those rules; and
• the applicable statutory provisions
• Communicated with component auditors to request
identication of any instances of non-compliance
with laws and regulations that give rise to a material
misstatement of the group nancial statements.
A further description of our responsibilities for the audit
of the nancial statements is located on the Financial
Reporting Council’s website at: www.frc.org.uk/
auditorsresponsibilities. This description forms part
of our auditor’s report.
Use of our report
This report is made solely to the Trustees as a body,
in accordance with our letter of engagement dated 16
th
December 2022. Our audit work has been undertaken
so that we might state to the Trustees those matters we
are required to state to them in an auditor’s report and
for no other purpose. To the fullest extent permitted
by law, we do not accept or assume responsibility to
anyone other than the Foundation and the Trustees
as a body, for our audit work, for this report, or for the
opinions we have formed.
Grant Thornton UK LLP
Statutory Auditor, Chartered Accountants
London
31 March 2023
Independent auditor’s report to the
Trustees of IFRS Foundation (continued)
62 IFRS Foundation Annual Report - FINANCIALS
Consolidated statement of
comprehensive income
YEAR ENDED 31 DECEMBER 2022
Note
2022
£’000
2021
£’000
Income
Contributed revenue 3 32,499 17,325
Earned revenue 4 15,972 11,091
Other income 4 213 370
48,684 28,786
Gain on consolidation of Value Reporting Foundation 2 7,752 -
Operating expenses
Technical and operational activities
• Board members and staff costs 5 (30,679) (20,173)
• Other technical and operating costs 5 (10,486) (3,672)
• IFRS Advisory Council, IFRS Interpretations
Committee and other advisory bodies 5 (281) (42)
Earned revenue activities 4 (2,827) (2,087)
Trustee oversight 6 (1,128) (660)
Premises, occupancy and related expenses 7 (2,606) (2,187)
(48,007) (28,821)
Net operating income / (loss) 8,429 (35)
Finance income 12 1,843 527
Finance costs 12 (1,739) (846)
104 (319)
Income / (loss) before tax 8,533 (354)
Income tax charge 9 (406) (452)
Income / (loss) for the year after tax
8,127 (806)
Other comprehensive income―items that may be
reclassied subsequently to the income statement
Exchange differences on translating foreign operations 163 -
Total comprehensive income / (loss) for the year
8,290 (806)
Retained surplus at beginning of year 40,734 41,540
Comprehensive income / (loss) for the year 8,290 (806)
Retained surplus at end of year 49,024 40,734
Consolidated statement of
changes in retained surplus
YEAR ENDED 31 DECEMBER 2022
The notes on pages 65 to 89 form part of these nancial statements.
63 IFRS Foundation Annual Report - FINANCIALS
Consolidated statement
of nancial position
AS AT 31 DECEMBER 2022
Note
2022
£’000
2021
£’000
Assets
Current assets
Cash and cash equivalents 35,958 15,275
Contributions receivable 3 4,218 3,517
Trade and other receivables 4 3,772 802
Prepaid expenses 1,316 1,085
Inventories 320 167
Bonds at fair value, including accrued interest 11 6,920 5,932
Forward currency contracts at fair value 10 - 34
52,504 26,812
Non-current assets
Bonds at fair value, including accrued interest 11 7,721 15,239
Investment portfolio 11 2,524 -
Leasehold improvements, furniture and equipment 7 1,850 2,263
Right-of-use assets 8 4,488 4,105
Intangible assets 5 1,000 1,714
Deferred tax asset 9 - 117
17,583 23,438
Total assets
70,087 50,250
Liabilities
Current liabilities
Trade and other payables 2,000 637
Payroll taxes payable 1,383 681
Accrued expenses 4,336 1,223
Contributions received in advance 3 2,515 615
Lease liability 8 398 933
Revenue received in advance 4 5,239 1,193
Tax liability 9 149 -
16,020 5,282
Non-current liabilities
Lease liability 8 4,349 3,683
Reinstatement provision 7 539 551
Deferred tax liability 9 155 -
5,043 4,234
Total liabilities 21,063 9,516
Net assets / retained surplus 49,024 40,734
Erkki Liikanen
Chair of the IFRS Foundation Trustees
The notes on pages 65 to 89 form part of these nancial statements.
64 IFRS Foundation Annual Report - FINANCIALS
Consolidated statement of cash ows
YEAR ENDED 31 DECEMBER 2022
Note
2022
£’000
2021
£’000
Operating activities
Cash received
Contributions 33,784 17,143
Earned revenue 14,961 11,090
Funding for Asia-Oceania Tokyo ofce 4 221 280
Cash inow from VRF business combination 2 13,411 -
Interest 317 507
Foreign exchange settlements - 269
Other receipts 2 6
Cash paid
Salaries, wages and benets (30,283) (20,329)
Earned revenue related activities expenses (2,349) (2,060)
Trustees’ fees (662) (654)
Other operating expenses (11,445) (4,248)
Net cash from operating activities 17,957 2,004
Investing activities
Matured bonds receipts 5,805 5,507
Purchase of investments 11 (2,500) (5,512)
Purchase of leasehold improvements, furniture and
equipment 7(b) (130) (348)
Purchase of intangible assets 5(c) (39) (528)
Net cash from / (used) in investing activities 3,136 (881)
Financing activities
Payments of principal on lease liabilities 8 (1,091) (931)
Payments of interest on lease liabilities 8 (128) (142)
Net cash used in nancing activities (1,219) (1,073)
Effects of exchange rate changes on cash
and cash equivalents 809 (74)
Net increase / (decrease) in cash and cash equivalents 20,683 (24)
Cash and cash equivalents at the beginning
of the year
15,275 15,299
Cash and cash equivalents at the end of the year 35,958 15,275
The notes on pages 65 to 89 form part of these nancial statements.
65 IFRS Foundation Annual Report - FINANCIALS
Notes to the consolidated
nancial statements
FOR THE YEAR ENDED 31 DECEMBER 2022
Signicant accounting policies
General information
The Foundation is a not-for-prot corporation
under the General Corporation Law of the State of
Delaware, US and operates in England and Wales as
an overseas company (Company number: FC023235)
with its principal ofce at Columbus Building, 7
Westferry Circus, Canary Wharf, London, E14 4HD.
The Foundation was incorporated on 6 February
2001. The objectives and governance arrangements
of the Foundation and its independent standard-
setting bodies, the International Accounting Standards
Board (IASB) and the International Sustainability
Standards Board (ISSB), are set out in the IFRS
Foundation’s Constitution.
The Climate Disclosure Standards Board (CDSB) was
consolidated with the IFRS Foundation with effect
from 1 February 2022. As part of the consolidation,
CDSB staff were transferred to the Foundation, with
intellectual property and technical assets to support
the ISSB.
The Value Reporting Foundation (VRF), including
its Integrated Reporting Framework and SASB
Standards, was consolidated with the IFRS
Foundation and the separate existence of the VRF
ceased with effect from 1 August 2022. The VRF
(incorporated under the California Non-prot Public
Benet Corporation Law) was a global not-for-
prot organisation whose mission was to establish
and improve industry-specic disclosure standards
across nancially material environmental, social
and governance topics. The VRF included three
afliated entities incorporated in England and Wales―
Value Reporting Foundation UK, Value Reporting
Foundation Charity and International Integrated
Reporting Council (the ’VRF UK Structure‘). As part of
the consolidation, the VRF’s ownership of the VRF UK
Structure was transferred to the IFRS Foundation.
The consolidation of the IFRS Foundation and VRF
from a legal perspective was structured as a merger
with the IFRS Foundation being the successor and
sole surviving corporation. The effect of the merger
is that, from and after 1 August 2022, the IFRS
Foundation succeeded to all the assets, rights,
privileges, powers and franchises and all of the
liabilities, restrictions, disabilities and duties of the
VRF and the IFRS Foundation. After completion of the
merger the IFRS Foundation, as the parent company,
prepares only one consolidated set of nancial
statements.
Basis of preparation
The consolidated nancial statements are presented in
British pound sterling, which is the functional currency
of the parent company. Items in the statement of
nancial position are translated into the presentation
currency, British pound sterling, according to the
exchange rates prevailing on the statement date; prot
or loss items are translated according to exchange
rates on the transaction date. Changes in net
assets resulting from exchange rate movements are
recognised in other comprehensive income.
The Foundation has prepared the consolidated
nancial statements for 2022 in accordance with IFRS
Accounting Standards, as issued by the IASB. The
consolidated nancial statements are based on the
historical cost principle, with the exception of nancial
assets and nancial liabilities measured at fair value.
Assets acquired and liabilities assumed are measured
at their acquisition fair values.
As disclosed in Note 13, there have been no events
since 31 December 2022 that required an adjustment
to the nancial statements.
66 IFRS Foundation Annual Report - FINANCIALS
Notes to the consolidated
nancial statements (continued)
Going concern
The Trustees are responsible for overseeing the
Foundation’s nancial reporting and for assessing the
Foundation’s ability to continue as a going concern,
disclosing, as applicable, matters related to going concern.
The ability of the Foundation to continue to operate as a
going concern depends on its ability to generate sufcient
cash ows from its contributions and publications and
related activities to meet its liabilities. The Foundation
produces annual budgets and forecasts that take into
account the Foundation’s activities, operations and known
cash requirements.
The Foundation has reviewed its nancial performance
and the general reserves position for 2022. The
Foundation’s planning process has taken into
consideration the current and forecasted economic
climate and its potential impact on the Foundation’s
various sources of income and planned expenditure.
The Foundation has reviewed the nancial cash ow
projections for the 18 months after the end of the reporting
period and has performed stress testing on these cash
ows. The Foundation has a reasonable expectation that it
will be able to continue in operation and meet its liabilities
as they fall due for the 18 months after the end of the
reporting period.
There continues to be strong global support for the
Foundation and the work of the IASB and the ISSB. To
support the ISSB and its new ofces, the Foundation
has ve-year seed funding commitments from Canada,
Germany and Japan as well as other multi-year funding
commitments from Korea, New Zealand and the United
Kingdom. A Memorandum of Understanding with China to
provide support was signed in December 2022.
Having regard to all relevant circumstances and the
substantial reserve funds held by the Foundation, the
Trustees consider it appropriate to prepare the nancial
statements on a going concern basis.
Current period and future changes
to the accounting policies
The consolidated nancial statements have been
prepared in accordance with IFRS Accounting Standards.
The Foundation adopted the amendments Interest Rate
Benchmark Reform—Phase 2 with effect from 1 January
2021. The Foundation is not exposed to hedging or
directly affected by interest rate benchmark reform. No
contractual cash ows of nancial assets or nancial
liabilities measured at amortised costs changed as a
result of interest rate benchmark reform.
The Foundation has concluded that there are no IFRS
Accounting Standards or IFRIC Interpretations in issue
that are not yet applied that will have a material effect on
the nancial statements.
Cash ow statements
The cash ow statement shows cash ows grouped
according to source and use. The cash ows are
presented as operating expenses, investment activities or
funding activities. Cash and cash equivalents are dened
as cash and deposits with central banks. The cash ow
statement has been prepared in accordance with the
direct method.
Inventories
Inventories consist of the Foundation’s publications,
which are carried at the lower of the cost of printing, on
a rst-in, rst-out basis or their net realisable value.
Intangible assets
Intellectual property
The Foundation’s most important intangible asset is the
intellectual property embodied in IFRS Standards and
related content. The Foundation does not recognise
its intellectual property as an intangible asset because
the cost of the asset cannot be measured reliably.
Expenditure related to the development of IFRS
Standards and related content is recognised as an
expense in the year in which it is incurred.
Through the consolidation of VRF, the IFRS
Foundation obtained brand names, customer lists and
intellectual property (including the Integrated Reporting
Framework and SASB Standards) which had an
immaterial fair value (Note 2).
Software development
Other intangible assets include software development
expenditure (Note 5).
67 IFRS Foundation Annual Report - FINANCIALS
Notes to the consolidated
nancial statements (continued)
Judgements and estimates
When preparing the consolidated nancial statements,
management makes estimates, judgements and
assumptions about the recognition and measurement of
assets, liabilities, revenues and expenses.
The key judgements made by management in applying
the accounting policies of the organisation that have the
most material effect on these nancial statements relate
to:
i. the capitalisation of intangible assets (software
development)―to distinguish the research and
development phases, including conguration or
customisation of software development and to
determine whether the recognition requirements
for the capitalisation of software development
costs meet the criteria of IAS 38 and SIC 32. After
capitalisation, management monitors whether the
recognition requirements continue to be met and
whether there are any indicators that capitalised
costs may be impaired.
ii. the consolidation of VRF (Note 2)―to determine the
appropriate accounting for the transaction and to
reach the conclusion that:
a. no goodwill arises on the transaction;
b. no intangible assets were acquired of material
value;
c. the gain on consolidation does not meet the
denition of a gain on bargain purchase; and
d. the gain on consolidation should be accounted
for as income.
There are no other signicant judgements or estimates
that require separate disclosures.
Explanatory information
The explanatory notes have been organised into
sections that provide a cohesive presentation of the
nancial reporting implications of the Foundation’s core
activity (the development of IFRS Accounting Standards
and IFRS Sustainability Disclosure Standards), how it
funds that activity and how it manages its nancial risk.
Each section presents the nancial information and
any signicant accounting policies that are relevant to
understanding the activities of the Foundation.
68 IFRS Foundation Annual Report - FINANCIALS
Notes to the consolidated
nancial statements (continued)
1. Consolidation
The consolidated nancial statements for the Foundation include the IFRS Foundation and its subsidiaries. The
accounting principles are applied consistently for the IFRS Foundation and its subsidiaries and are based on the
same accounting periods.
Subsidiaries are dened as entities over which the IFRS Foundation, directly or indirectly, has control. Control over
an entity is evidenced by the Foundation’s ability to exercise its power in order to affect any variable returns that the
Foundation is exposed to through its involvement with the entity.
When preparing the consolidated nancial statements, intra-group transactions and balances, along with gains and
losses on transactions between group entities, are eliminated.
Composition of the group
The VRF was consolidated with the IFRS Foundation and the separate existence of the VRF ceased with effect
from 1 August 2022. The VRF included three afliated entities incorporated in England and Wales―Value
Reporting Foundation UK, Value Reporting Charity UK and International Integrated Reporting Council (the ’VRF
UK Structure‘). As part of the consolidation, the VRF’s ownership of the VRF UK Structure was transferred to the
IFRS Foundation.
On 13 July 2022 the IFRS Foundation (ISSB) Montreal was incorporated in Quebec, Canada.
On 15 November 2022 the IFRS Foundation (ISSB) Frankfurt was incorporated in Frankfurt, Germany.
The International Integrated Reporting Council was dissolved on 20 September 2022.
All subsidiaries are held directly by the Foundation:
NAME OF
SUBSIDIARY
COUNTRY OF
INCORPORATION
DATE OF
INCORPORATION
PRINCIPAL
ACTIVITY
PROPORTION OF
OWNERSHIP HELD BY
THE FOUNDATION AT 31
DECEMBER 2022
Value Reporting
Foundation UK
UK 2011 Integrated Reporting 100%
Value Reporting
Charity UK
UK 2015 Integrated Reporting 100%
IFRS Foundation (ISSB)
Frankfurt
Germany 2022 Standard-setting 100%
IFRS Foundation (ISSB)
Montreal
Canada 2022 Standard-setting 100%
The annual reporting date of each of the subsidiaries is 31 December.
The Canadian and German entities were not trading as at 31 December 2022.
69 IFRS Foundation Annual Report - FINANCIALS
2. Business combinations
The consolidation of the CDSB and the IFRS Foundation was completed in February 2022. No material assets or liabilities
were received as part of this business combination. Costs related to the transaction of £165,000 have been recognised as
an expense in the consolidated statement of comprehensive income.
The consolidation of the VRF and the IFRS Foundation was completed in July 2022. The acquisition method was applied
in accounting for the business combination. The assets and liabilities of the VRF were transferred into the control of the
IFRS Foundation for no consideration. Costs related to the transaction of £181,000 have been recognised as an expense
in other technical and operating costs in the consolidated statement of comprehensive income.
Right-of-use assets and lease liabilities have been measured applying IFRS 16 and employee benet liabilities have been
measured applying IAS 19 on acquisition date and measured subsequently applying the Foundation's accounting policies.
All other identiable assets and liabilities assumed in the VRF business combination have been measured at their fair
values on acquisition date and measured subsequently applying the Foundation's accounting policies. The value of the
assets received at acquisition date exceeded the value of the liabilities assumed at acquisition date:
The gross contractual amount of the trade and other receivables transferred as part of the business combination
approximate to their fair value.
The VRF assets and liabilities with a net fair value of £7.8 million were transferred into the control of the IFRS Foundation
for no consideration, resulting in a gain of £7.8 million.
As part of the consolidation of the VRF, the IFRS Foundation obtained brand names, customer lists and intellectual
property that qualify for separate recognition as intangible assets at their fair values. As permitted applying IAS 38,
these assets are considered a complementary group and have been treated as a single asset (collectively the ‘VRF IP’)
for the purposes of determining fair value. In the absence of comparative market data or market for the VRF IP, it was
determined that no intangible assets were acquired of material value.
Goodwill represents the future economic benets arising from a business combination that are not individually identied
and separately recognised. As required for business combinations achieved with nil consideration, when calculating
whether there is any goodwill the fair value of the Foundation’s interest in the VRF has been compared to the net fair
value of the VRF assets and liabilities received. The two values are substantially similar and therefore no goodwill has
been recognised as a result of the business combination.
Similarly, when assessing whether there is any bargain purchase gain the fair value of the Foundation’s interest in
the VRF has been compared to the net fair value of the VRF assets and liabilities received. As the two values are
substantially similar, the gain on consolidation does not meet the denition of a bargain purchase because it does not
result from there being a difference between the fair values of the Foundation’s interest in the acquired business and the
fair value of the net assets received.
1 August 2022
£'000
Identiable net assets
Right-of-use assets
179
Total non-current assets 179
Trade and other receivables
1,165
Cash and cash equivalents
13,411
Total current assets 14,576
Revenue received in advance
3,454
Lease liability 179
Other liabilities 3,269
Trade and other payables 86
Tax liability
15
Total current liabilities 7,003
Total identiable net assets 7,752
70 IFRS Foundation Annual Report - FINANCIALS
2. Business combinations (continued)
In the context of the consolidation of the VRF, the VRF assets and liabilities have been transferred to the IFRS Foundation
for nil consideration to support the creation of a combined organisation to allow more rapid progress towards improving
global consistency and comparability of sustainability-related nancial reporting. The gain of £7.8 million is viewed in
substance as a donation and has therefore been treated as income in 2022.
VRF’s contribution to the Foundation results
The results of the legacy VRF activities have been included in the Foundation results from the date of acquisition. The
legacy VRF activities incurred a loss of £165,000. Income for the same period was £5.5 million.
If the VRF had been consolidated on 1 January 2022, income of the Foundation would have increased by £15.9 million
and the surplus for the year would have decreased by £1.8 million.
3. Contributed revenue
Contributions to the Foundation are voluntary and are recognised as income in the year designated by the funding
provider. Contributions that have been received but are designated for use after the reporting date, are deferred and
recognised as contributions received in advance. As at year end £2.5 million (2021: £615,000) of contributions received
are deferred. Contributions received after the reporting date but designated for use in the reporting period are recognised
as income and as contributions receivable. As at year end £4.2 million (2021: £3.5 million) is included within contributions
receivable.
When the Trustees considered creating a new board focused on sustainability disclosure standards, they set out several
carefully dened success factors. Among them were achieving the level of separate funding required to establish the ISSB
and the capacity to obtain nancial support. During 2022, the Foundation signed Memoranda of Understanding (MoU)
with partners in Germany, Canada and China.
The MoU with the German public and private sector institutions formalises the partnerships and seed funding to support
the establishment and presence of the ISSB in Frankfurt for ve years. Funding from the German public institutions is
supported by a £1.8 million enforceable grant (€2.0 million).
The MoU with the Canadian and Quebec governments and the private sector formalises the partnerships and seed
funding arrangements to support the establishment and presence of the ISSB in Montreal for ve years.
The MoU with the Chinese Ministry of Finance formalises the partnerships to support the establishment and presence of
the ISSB in Beijing for three years.
The Foundation receives annual contributions from the European Commission and the Australian Financial Reporting
Council (AFRC) for the work of the IASB. These contributions are supported by enforceable grants, subject to various
conditions that the Foundation is expected to meet. The European Commission grant of £3.3 million / €3.85 million (2021:
£3.8 million / €4.5 million) is payable by instalments, and contributions receivable includes the nal grant instalment
expected for 2022 of £0.9 million (2021: £1.9 million). The AFRC grant of £530,000 was received in full in 2022 (2021:
£561,000).
The Foundation secured new multi-year grants for ISSB-related activities from the European Climate Foundation, London
Stock Exchange, Heising-Simons Foundation and IKEA. A total of £580,000 has been recognised as contributed revenue
in 2022.
A full list of funding providers can be found on page 90.
71 IFRS Foundation Annual Report - FINANCIALS
3. Contributed revenue (continued)
The Foundation receives contributions from the different jurisdictions in a range of currencies.
Contributions by Board 2022 2021
£'000 £'000
IASB related activities 17,055 17,325
ISSB related activities
15,444 -
32,499 17,325
Contributions by currency 2022 2021
£'000 £'000
British pound sterling 4,467 2,678
Canadian dollars 6,465 525
Euro 9,243 6,266
US dollars 7,695 4,774
Other
4,629 3,082
32,499 17,325
Contributions by region 2022 2021
£'000 £'000
Americas 8,625 1,796
Asia-Oceania 8,976 5,580
Europe 10,362 7,683
UK 4,300 2,165
Other
236 101
32,499 17,325
For more information on how the Foundation manages its currency risk refer to Note 10.
Government
26%
Philanthropic
4%
Corporate
1%
Government
15%
Grant
6%
Seed capital
55%
Financial
institution
6%
European
Commission
19%
Corporate
3%
Accountancy body/
regulatory body
31%
Accountancy
body/
regulatory
body
15%
Accounting and
auditing rm
15%
Accounting and
auditing rm
4%
Contributions by funding
providers 2022 - IASB
Contributions by funding
providers 2022 - ISSB
72 IFRS Foundation Annual Report - FINANCIALS
4. Earned revenue and other income
a) Earned revenue
Earned revenue was generated from publications and subscriptions services, licensing of intellectual property,
membership fees for the ISSB Sustainability Alliance, education programmes and conferences.
Included in the total earned revenue for 2022 are licensing fees of £3.1 million, membership fees of £1.3 million and
education sales of £328,000 from the earned revenue programmes that were transferred to the Foundation as part of
the VRF business combination.
The table presents the components of the net income generated by all earned revenue activities:
2022 2021
£'000 £'000
Revenues from contracts with customers
Licensing 11,356 8,164
Publications 1,296 1,350
Subscription services 1,554 1,482
Membership services 1,285 -
Education services 328 -
Conferences and speaking engagements
153 95
15,972 11,091
2022 2021
£'000 £'000
Expenses
Staff salaries and related costs 1,399 855
Cost of goods sold 733 333
Depreciation 167 159
Occupancy 197 163
Communication technology 212 198
Other costs
119 379
2,827 2,087
Net income from earned revenue activities 13,145 9,004
The Foundation enters into non-exclusive licensing contracts granting intellectual property rights to customers who
wish to use it in their commercial offerings or commercial practices. The arrangements are governed by contracts
that establish the fees and term. Consideration for these contracts is in the form of xed fees. Revenues for xed-fee
contracts are recognised on a time-apportioned basis over the term of the licence because the contracts provide ongoing
access to updated versions of IFRS Standards and other related content. Revenues for variable-fee contracts are
recognised as the customers’ sales occur. Revenue is measured based on the consideration specied in the contracts.
Revenue from printed publications is recognised when control of the publication is transferred to the customer, which occurs
upon shipment. Publications are paid for in advance of shipment. Customers are entitled to refunds or returns in accordance
with statutory requirements, but such occurrences based on experience are expected to be infrequent and immaterial.
Revenue from subscription and membership services is recognised over the subscription or membership period on a
time-apportioned basis. Subscriptions and memberships are generally paid for in advance.
Revenue from education services is recognised when the relevant exam is taken by the customer.
Trade and other receivables of £3.8 million (2021: £802,000) include £2.7 million (2021: £232,000) for licensing
contracts, £484,000 for subscriptions and membership services (2021: £nil), £116,000 for conferences and speaking
engagements (2021: £18,000), and £40,000 for education services (2021: £nil).
Revenue received in advance arises from revenue received (for licensing, subscription, membership and education
services) in advance of the period in which the Foundation provides the services. The revenue in advance amount of
£1.2 million recognised at the beginning of the year has been recognised as revenue during the year, and the amount of
£5.2 million recognised at the end of the year is expected to be recognised as revenue in 2023.
73 IFRS Foundation Annual Report - FINANCIALS
4. Earned revenue and other income (continued)
b) Other income
The Financial Accounting Standards Foundation (FASF) of Japan has provided nancial support to the Foundation since
its inception in 2001. That support was enhanced in 2012 to enable the formation of the Asia-Oceania ofce in Tokyo
which has supported the IASB in its technical work and market engagement (Note 13). During 2022 the Foundation
received separate funding from FASF towards the operations of the Asia-Oceania ofce. The Foundation recognised
£213,000 / ¥34 million of funding in 2022 (2021: £370,000 / ¥55 million). The amount has been fully recognised in other
income.
5. Technical and operational activities
a) Board members and staff costs
The main costs associated with developing IFRS Accounting Standards and IFRS Sustainability Disclosure Standards are
the salaries of the IASB and ISSB members and staff. As a result of creating the ISSB and consolidations with the CDSB
and the VRF, the number of staff employed by the Foundation has increased from 160 to 298 during 2022. Of these, 145
are technical staff, 127 are operations staff, and the remainder are Board members. The ISSB members were appointed
through 2022.
The Trustees’ Human Capital Committee reviews, benchmarks and recommends salary and benet levels, which are
reviewed and approved annually by the Trustees.
The Foundation offers its US employees the opportunity to participate in a salary reduction retirement plan (the ’Plan’),
qualied under Internal Revenue Code Section 401(k). The Plan provides employees with the opportunity to defer a
portion of their salary subject to statutory limitations. Employees must meet certain age and work requirements in order
to be eligible to participate in the Plan. The plan provides for discretionary employer contributions which are subject to a
vesting schedule in accordance with the IRS regulations.
For UK staff, the Foundation pays monthly contributions, at rates between 8% and 10% of gross salary, into a dened-
contribution group personal pension scheme on behalf of staff. Under dened-contribution pension schemes, the
Foundation does not commit itself to paying specied future pension benets but makes monthly or annual contributions
to the employees’ pension savings. After paying contributions, the Foundation has no further commitments linked to
employees' work performance. The expenses for the dened-contribution pension schemes are recognised as Board
members and staff costs in operating expenses.
2022 2021
£'000 £'000
Technical and operational activities 30,679 20,173
Earned revenue activities (Note 4) 1,399 855
Other technical and operating costs―Business Process and Technology
Programme (Note 5b)
191 326
32,269 21,354
2022 2021
£'000 £'000
IASB member salaries and related costs 6,373 7,363
ISSB member salaries and related costs 3,510 -
Staff salaries and related costs
22,386 13,991
32,269 21,354
Board members and staff costs are analysed as follows:
74 IFRS Foundation Annual Report - FINANCIALS
The IASB had 12 of its full complement of 14 members at the end of the year (2021: 12 members). During the year three
members left and three members joined.
Remuneration for Board members is either:
• an annual allowance where members can choose how this balance is received in salary, pension contributions and
other benets; or
• gross salary plus pension contributions and other benets.
ISSB member salaries are paid in a range of currencies and where appropriate are translated according to exchange
rates on the transaction date.
Gross remuneration covering all compensation and benets for the IASB Chair, ISSB Chair and Vice-Chairs is shown
under key management personnel in the table below.
The annual gross salary (based on a full year) covering all compensation and benets for other IASB and ISSB members
ranges between £485,000 and £542,000.
Staff salaries and related costs by region were as follows:
2022 2022 2022 2022 2022
£'000 £'000 £'000 £'000 £'000
UK and other Asia-Oceania Europe Americas Total
Board 6,373 752 1,835 924 9,884
Technical and operational
17,957 153 482 3,793 22,385
Total 24,330 905 2,317 4,717 32,269
2021 2021 2021 2021 2021
£'000 £'000 £'000 £'000 £'000
UK and other Asia-Oceania Europe Americas Total
Board 7,363 - - - 7,363
Technical and operational
13,683 159 - 149 13,991
Total 21,046 159 - 149 21,354
5. Technical and operational activities (continued)
a) Board members and staff costs (continued)
75 IFRS Foundation Annual Report - FINANCIALS
5. Technical and operational activities (continued)
a) Board members and staff costs (continued)
2022 2022 2022 2021
£'000 £'000 £'000 £'000
Short-term
employee
benets
Post-
employment
benets
Total
benets
Total
benets
Salary received as annual allowance
Andreas Barckow
IASB Chair (joined the Foundation April 2021, IASB Chair from July 2021)
707 4 711 518
Emmanuel Faber
ISSB Chair (from January 2022)
711 - 711 -
Sue Lloyd
IASB Vice-Chair (until February 2022)
ISSB Vice-Chair (from March 2022)
594 22 616 592
Linda Mezon-Hutter
IASB Vice-Chair (joined the IASB September 2022,
Vice-Chair from January 2023)
179 3 182 -
Salary received as gross salary plus pension and other benets
Jingdong Hua
ISSB Vice-Chair (from October 2022)
119 - 119 -
Lee White
Executive Director
359 36 395 352
Key management personnel
Key management personnel include the IASB Chair, ISSB Chair and Vice-Chairs of both the IASB
and ISSB, and the Executive Director. The total annual allowance including all compensation, pension
contributions and benets of key personnel are as follows:
76 IFRS Foundation Annual Report - FINANCIALS
5. Technical and operational activities (continued)
b) Other technical and operating costs
Operating expenses are recognised upon utilisation of the service or as incurred.
2022 2021
£'000 £'000
Fees payable to the external auditor―audit services 117 44
Fees payable to the external auditor―non-audit services 41 30
Fees payable for the audit of subsidiary accounts 19 -
Legal and taxation advice 116 71
Communication and technology 1,478 960
Business Process and Technology Programme―staff costs (Note 5a) 191 326
Business Process and Technology Programme―amortisation (Note 5c) 748 269
Technology programmes (see Note 5c) 568 552
External relations 249 35
Human resource and recruitment activities 1,892 567
Technical research library 128 171
Meeting video conferencing 184 142
Travel and meetings 1,712 21
Other ofce-related costs 349 230
Establishment of ISSB
2,694 254
10,486 3,672
• Communication and technology include the additional costs resulting from the consolidation of VRF and
expanded operations.
• Technology programme includes expenditure for the development of new IT infrastructure and the purchase of
computer software licenses (Note 5c). The Business Process and Technology Programme concluded in March
2022.
• Human resource and recruitment activities include the recruitment and vetting fees for the new ISSB members
and staff.
• Establishment of ISSB is mainly legal fees related to the consolidation with VRF, and the setup of the new ofces
and includes fees for tax, compliance and employment-related advice.
c) Intangible assets
The Foundation’s technology programmes include expenditure for the development of new IT infrastructure.
Expenditure on computer software licenses, research activities and project management costs are recognised as
expenses in the period in which they are incurred.
Intangible assets are stated at cost less accumulated amortisation and accumulated impairment losses.
Development expenditure is not amortised until such time as the asset is available for use. Otherwise, amortisation
is charged on a straight-line basis over the estimated life of the asset, which is typically ve years or less. The
asset lives are reviewed on an annual basis considering the degree of evolution of the asset and what plans, if any,
are being made for its replacement.
Expenditure that is directly attributable to the development of new software is recognised as intangible assets
provided that:
• the development costs can be measured reliably;
• the technical, nancial and other resources to complete the development are available;
• it is probable that the software development will generate future economic benets; and
• the Foundation has the power to obtain the future economic benets owing from the underlying resource and to
restrict the access of others to those benets.
Development costs of £568,000 (2021: £552,000) not meeting these criteria for capitalisation are recognised as an
expense as they are incurred.
77 IFRS Foundation Annual Report - FINANCIALS
5. Technical and operational activities (continued)
c) Intangible assets (continued)
2022 2022 2022 2022 2022
£'000 £'000 £'000 £'000 £'000
CRM
system
Modern web
platform
Finance
system
Other Total
Cost
1 January 334 1,202 164 290 1,990
Additions - - - 34 34
Derecognition of CRM/
nance systems
(334) - (164) - (498)
31 December
- 1,202 - 324 1,526
2021 2021 2021 2021 2021
£'000 £'000 £'000 £'000 £'000
CRM
system
Modern web
platform
Finance
system
Other Total
Cost
1 January 259 955 82 165 1,461
Additions 75 247 82 125 529
Disposals
- - - - -
31 December
334 1,202 164 290 1,990
Accumulated
amortisation
1 January 49 180 - 47 276
Charge for the year 285 240 164 59 748
Derecognition of CRM/
nance systems
(334) - (164) - (498)
31 December - 420 - 106 526
Carrying amount - 782 - 218 1,000
Accumulated
amortisation
1 January - - - 7 7
Charge for the year 49 180 - 40 269
Disposals
- - - - -
31 December 49 180 - 47 276
Carrying amount 285 1,022 164 243 1,714
In April 2021 the IFRS Interpretations Committee published its nal agenda decision on accounting for conguration
and customisation costs in a Software as a Solution (SaaS) arrangement. Based on this decision the Foundation
has determined that expenditure for the development of new software related to the CRM and nance systems
does not meet the recognition criteria for an intangible asset and has derecognised these intangible assets in 2022.
The amortisation charge of £748,000 has been expensed in 2022 and is included in other technical and operating
costs (Note 5b).
78 IFRS Foundation Annual Report - FINANCIALS
5. Technical and operational activities (continued)
d) The IFRS Advisory Council, IFRS Interpretations Committee and other advisory bodies
The annual remuneration for the Chair of the IFRS Advisory Council was £48,000 in 2022 (2021: £42,000).
Additionally, the Foundation reimburses the Chair’s travel and accommodation costs. Other members of the IFRS
Advisory Council do not receive remuneration and meet their own costs for attending meetings. Members of the
IFRS Interpretations Committee and members of the Capital Markets Advisory Committee are not remunerated,
but they are reimbursed for their travel and accommodation costs for attending meetings. Members of the IASB
and ISSB’s other advisory bodies meet their own costs for attending meetings and are not remunerated by the
Foundation. After two years of virtual-only meetings, the Foundation returned to in-person meetings in 2022. This is
reected in the increased travel and meeting costs in 2022.
Costs associated with these committee and advisory bodies are:
6. Trustee oversight
The Foundation’s management and governance is overseen by the Trustees of the Foundation. There were 22 Trustees
throughout the year (2021: 21 Trustees until 30 June 2021; thereafter 22 Trustees). The Trustees met six times during the
year. The Chair of the Trustees receives £200,000 per year and other Trustees receive an annual fee of £20,000. There
are seven active Trustee committees; committee chairs receive an additional £7,000 per year. All Trustees are reimbursed
for their travel relating to Foundation business. In 2021 all Trustee meetings were held virtually. In 2022 the Trustees met
in person three times. This is reected in the increased travel and meeting costs in 2022.
Costs associated with Trustee activities are:
7. Premises, occupancy and related expenses
a) Components of premises, occupancy and related expenses
2022 2021
£'000 £'000
Remuneration costs 48 42
Travel and meeting costs
233 -
281 42
2022 2021
£'000 £'000
Remuneration costs 673 642
Travel and meeting costs
455 18
1,128 660
2022 2021
£'000 £'000
Rates, insurance and energy 979 721
Rent―short-term leases (Note 8) 187 -
Service charges 382 368
Depreciation―xed assets (Note 7b) 551 571
Depreciation―right-of use asset (Note 8) 841 739
Other costs
30 110
2,970 2,509
Less amounts allocated to expenses for earned revenue activities (Note 4) (364) (322)
2,606 2,187
The components of premises, occupancy and related expenses are as follows:
79 IFRS Foundation Annual Report - FINANCIALS
7. Premises, occupancy and related expenses (continued)
a) Components of premises, occupancy and related expenses (continued)
Lease reinstatement provision of £539,000 (2021: £551,000) is the estimated costs of returning leasehold property to its
original state at the end of the lease in accordance with the lease terms. The provision is released on termination of the
lease (Note 8).
b) Leasehold improvements, furniture and equipment
Leasehold improvements, furniture and equipment and other xed assets are initially measured at cost, and then
depreciated on a straight-line basis from the date on which the asset is available for use. Leasehold improvements are
depreciated over the remaining periods of the related leases or their useful lives, whichever is shorter. Furniture and
equipment are depreciated over three or ve years.
In the case of right-of-use assets, expected useful lives are determined by reference to the lease term.
2022 2022 2022
£'000 £'000 £'000
Leasehold
improvements
Furniture and
equipment
Total
Cost
1 January 3,090 1,544 4,634
Additions 23 114 137
Net exchange differences 7 - 7
Disposals
- (174) (174)
31 December
3,120 1,484 4,604
2021 2021 2021
£'000 £'000 £'000
Leasehold
improvements
Furniture and
equipment
Total
Cost
1 January 2,924 1,271 4,195
Additions 166 273 439
Disposals
- - -
31 December
3,090 1,544 4,634
Accumulated depreciation / amortisation
1 January 1,261 1,110 2,371
Net exchange differences 6 - 6
Charge for the year 332 219 551
Disposals
- (174) (174)
31 December 1,599 1,155 2,754
Carrying amount 1,521 329 1,850
Accumulated depreciation / amortisation
1 January 861 939 1,800
Charge for the year 400 171 571
Disposals
- - -
31 December 1,261 1,110 2,371
Carrying amount 1,829 434 2,263
80 IFRS Foundation Annual Report - FINANCIALS
8. Leases
The Foundation makes use of leasing arrangements principally for the provision of ofce space. The Foundation
also has leases for some IT and ofce equipment. With the exception of short-term leases and leases of low value,
each lease is reected in the statement of nancial position as a right-of-use asset and a lease liability.
Right of-of-use assets are recognised at cost and comprise the amount of the initial measurement of the lease
liability less accumulated depreciation. The Foundation depreciates the right-of-use asset on a straight-line basis
from the lease commencement date to the earlier of the end of the useful life of the underlying asset or the end of
the lease term.
Lease liabilities are recognised at the present value of lease payments not yet paid discounted using the
Foundation’s incremental borrowing rate at the date of the lease inception―the interest rate implicit in each
lease cannot be readily determined because the fair value of the underlying asset is not known. The incremental
borrowing rate used ranges from 3% to 5.5%. Interest expense on the lease liability is included in nance costs
(see Note 12).
The Foundation has elected not to recognise a right-of-use asset or lease liability for short-term leases (leases with
an expected term of 12 months or less) or for leases of low-value assets. Payments for such leases are expensed
on a straight-line basis over the lease term.
a) Short-term leases and leases of low-value assets
The Foundation has short-term leases for ofce premises in Frankfurt and Montreal, and leases of low value for
some IT and ofce equipment. The expense relating to payments not included in the measurement of the lease
liability is as follows:
2022 2021
£'000 £'000
Short-term premises leases 187 -
Ofce equipment
11 6
Total 198 6
b) Long-term leases (expected term of more than 12 months)
The Foundation has long-term leases for the ofce premises in London, San Francisco and T
okyo.
The ten-year London ofce-premises lease commenced in January 2018. The lease includes a ve-year break
clause and incentives in the form of rent-free periods both initially and in year six. In 2022, the Foundation made
the decision not to exercise the break clause and will benet from a one year rent-free period in 2023. There has
been no modication or change in the lease term.
The ten-year Tokyo ofce-premises lease, which commenced in October 2012, ended in September 2022. A new
ve-year lease commenced on 1 October 2022.
As part of the consolidation of the VRF, the Foundation obtained a lease for ofce premises in San Francisco which
was scheduled to expire on 31 May 2023. In November 2022 the lease was extended for 26 months to 31 July 2025.
81 IFRS Foundation Annual Report - FINANCIALS
8. Leases (continued)
b) Long-term leases (expected term of more than 12 months) (continued)
Right-of-use assets recognised for leases are as follows:
2022 2021
£'000 £'000
Right-of-use assets at 1 January 4,105 4,844
Received through the consolidation of the VRF 179 -
Additions 1,043 -
Depreciation charge for the year (841) (739)
Net exchange differences
2 -
Carrying amount of right-of-use assets at 31 December 4,488 4,105
2022 2021
£'000 £'000
Within one year 313 1,053
In two to ve years 4,829 3,008
More than ve years
- 1,003
5,142 5,064
Effect of discounting
(395) (448)
Lease liability at 31 December 4,747 4,616
Current 398 933
Non-current
4,349 3,683
4,747 4,616
Future undiscounted lease commitments under the premises leases are:
Total cash outows related to leases during the year were £1.2 million (2021: £1.1 million); the increase in the lease
liability of £131,000 (2021: £931,000 decrease) represents additions of £1.2 million for new premises leases (San
Francisco and Tokyo) and cash ows of £1.1 million for the repayment of principal (see statement of cash ows).
82 IFRS Foundation Annual Report - FINANCIALS
9. Taxation
The IFRS Foundation was incorporated in February 2001 and is registered in the US as a not-for-prot corporation
known as a Section 501(c) (03) tax-exempt organisation. The exemptions are subject to periodic review by the
federal and state taxing authorities and management is condent that the IFRS Foundation continues to satisfy
all federal and state statues to continue to qualify for continued tax exemption status. Corporations in the US are
registered in the individual states; the Foundation is registered in the State of Delaware. The Foundation is required
to register in any state where charitable funds have been raised.
In the US, the IFRS Foundation is required to le information tax returns with the federal and state authorities.
The federal tax return, known as Form 990, provides extensive nancial, governance and compliance information.
The state returns are brief in comparison, but all require that Form 990 is attached to the state lings. The actual
business trading activities of the Foundation surrounding its UK and US earned revenue activities do not present
any US tax ling requirements.
The Canadian and German subsidiaries were dormant for tax purposes in 2022.
In relation to UK operations, the IFRS Foundation registered in 2001 in the UK as an Overseas Company.
Registration of an overseas company is required when there is some degree of physical presence in the UK such
as a place of business or branch through which it carries on business. The IFRS Foundation, like most overseas
companies, is required to send accounting and governance-related documents to Companies House.
The IFRS Foundation reached an agreement with the UK authorities in April 2006 (HMRC agreement) regarding
its corporate tax position in the UK. It was agreed that, in relation to the IFRS Accounting Standards, UK earned
revenue activities (Note 4) constitutes a ’business activity‘, whilst standard setting is a ’non-business activity‘.
Earned revenue generated from IFRS Accounting Standards ('Publications') is therefore assessed for UK tax.
It was also agreed that contributions received by the IFRS Foundation were not subject to UK tax. The UK tax
treatment is broadly in line with UK charities which pay no tax on donations but are assessed for tax on their trading
business.
The VRF UK reached an agreement with the UK authorities in 2013 regarding its corporate tax position in the UK and
is only required to report interest received from banking and investments and any capital gains. The VRF UK earned
revenue programmes established after 2013 constitute a 'business activity' and are also assessed for UK tax.
a) Current tax charge
In the HMRC agreement with the IFRS Foundation, there are a number of specic elements to the calculation
which were stipulated by HMRC and with which the IFRS Foundation complies. The major elements are as follows:
• all Publications revenues are taxable as trading prots;
• direct cost of sales and direct operating expenses for Publications are deductible from trading prots;
• a proportion of the general operating expenses of the Foundation, including remuneration, accommodation and
other expenses, are deductible in calculating trading prots;
• a deduction is allowed for ‘notional royalties’ calculated at set proportions of UK Publications revenues―50%
of revenues from electronic products and 20% of revenues from printed products. HMRC agreed to these
‘intellectual property’ deductions to account for the costs of creating the actual content of Publications; and
• a working capital deduction to fund direct and indirect expenses in advance of receipt of Publications income
was agreed.
83 IFRS Foundation Annual Report - FINANCIALS
9. Taxation (continued)
a) Current tax charge (continued)
In 2022 this calculation, plus VRF UK taxable income of £26,000, produced a net taxable prot of £1,456,000
(2021: £2,192,000). After utilising carried forward tax losses the Foundation has a net taxable prot chargeable to
tax of £707,000 (2021: £nil). The current year tax charge is £134,000 (2021: £nil). The current tax liability, including
the tax liability of £15,000 assumed on consolidation of the VRF UK (Note 2) for the period is £149,000 (2021: £nil).
The tax charge comprises: 2022 2021
£'000 £'000
Current tax charge 134 -
Deferred tax charge 272 452
Total tax charge 406 452
2022 2021
£'000 £'000
Income / (loss) before tax 8,533 (354)
Applicable tax rate 19% 19%
Tax at the applicable tax rate 1,621 (67)
Effects of:
- expenses net of income not subject to UK tax 1,174 1,444
- gain on consolidation of VRF not subject to UK tax (1,473) -
- expenses not deductible for UK tax purposes 2 2
- notional royalty and working capital deduction (944) (927)
- deferred tax not recognised (11) -
- remeasurement of deferred tax for changes in tax rate 37
- adjustment differences in prior years - 1
Tax charge 406 452
The tax assessed for the period is lower than the standard rate of corporation tax in the UK (19%). The reason for
the difference between the actual tax charge for the year and the standard corporation tax applied to prots for the
year is:
'Expenses net of income not subject to UK tax' mainly represents voluntary contributions, US earned revenue and
related expenses, and expenses that are not deductible for trading purposes.
84 IFRS Foundation Annual Report - FINANCIALS
9. Taxation (continued)
b) Deferred tax
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that future
taxable prots will be available against which to use the asset. Deferred tax assets are reduced to the extent that it
is no longer probable that the related tax benet will be realised.
In 2022 the Foundation has fully utilised its carried-forward trade losses of £1,466,000, and at 31 December 2022
has recognised a deferred tax liability of £155,000 related to temporary differences (2021: deferred tax asset of
£117,000 for carried-forward losses net of temporary differences).
In 2022 the Foundation did not fully utilise its carried forward non-trade losses and has £91,000 of non-trade losses
carried forward (2021: £157,000). Deferred tax has not been recognised on non-trade losses carried forward
because it is uncertain whether the Foundation will be able to utilise these losses to offset future taxable non-trade
income.
Deferred taxes that have been recognised at the balance sheet date are measured at the tax rate of 25%―the rate
for the nancial year beginning 1 April 2023.
2022 2021
£'000 £'000
Deferred tax asset at 1 January 117 569
Deferred tax (charge) for the year (272) (452)
Deferred tax (liability) / asset at 31 December (155) 117
Losses Temporary
differences
Total
£’000 £’000 £’000
Deferred tax asset at 1 January 247 (130) 117
Deferred tax (charge) for the year
(247) (25) (272)
Deferred tax (liability) / asset at 31 December - (155) (155)
Deferred taxes arising from temporary differences and unused tax losses are summarised as:
85 IFRS Foundation Annual Report - FINANCIALS
10. Risk management
The Trustees have overall responsibility for the establishment and oversight of the Foundation’s risk management
framework. The Foundation’s risk management policies are established to identify and analyse the risks faced
by the Foundation, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. The
Foundation has a conservative approach to nancial risk, and the principal purpose of its treasury management
policy is to maintain liquidity and to safeguard the Foundation’s reserves. The Audit, Finance and Risk Committee
oversees how management monitors compliance with nancial risk management policies and procedures and
reviews the adequacy of the risk management framework in relation to those risks. Risk management policies and
systems are reviewed regularly.
As at 31 December 2022 the Foundation has not identied signicant risks induced by climate changes that could
negatively affect the consolidated nancial statements.
Liquidity risk
Liquidity risk is the risk that the Foundation will not be able to meet its nancial obligations as they fall due. The
Foundation’s approach to managing liquidity is to ensure that it will always have sufcient liquidity to meet its
liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking
damage to the Foundation’s reputation. The Foundation has no borrowings.
The contractual maturity analysis for lease liabilities is presented in Note 8. All other non-derivative nancial
liabilities comprising trade and other payables are due within six months.
The Foundation holds reserves in different currencies to provide cover for unexpected changes in income and
expenditure, allowing the Foundation to continue activities in the event of any shortfall in revenue (particularly from
the voluntary elements of its funding), as well as unforeseen costs.
Cash is held either as current or as short-term overnight deposits at oating rates of interest. Cash at bank is
held in British pound sterling, Canadian dollar, euro, US dollar and yen accounts to meet expenditure obligations.
Surplus funds are invested in short-duration investments, all of which are of high credit quality.
Credit risk
Credit risk is the risk of nancial loss to the Foundation if a counterparty or customer to a nancial instrument
fails to meet its contractual obligations. The Foundation is exposed to credit risk in relation to its xed-interest
investments and its nancial assets measured at amortised cost comprising cash and cash equivalents,
contributions receivable and earned revenue receivables. The Foundation has assessed the credit risk of its
nancial assets measured at amortised cost and has determined that the loss allowance for expected credit losses
of those assets is immaterial to the nancial statements. The Foundation has a history of very low credit losses and
this is not expected to change in the foreseeable future.
The Foundation is mainly exposed to credit risk from its contributions receivable and earned revenue receivables.
At 31 December 2022 the Foundation has a contribution receivable of £0.9 million (2021: £1.9 million) from a single
funding provider, the European Commission. This contribution receivable reects the nal grant instalment for
2022. The European Commission has a high credit rating and stable outlook. The Foundation has determined this
receivable to have low credit risk.
Exposure to credit risk arising from earned revenue activities is managed by requiring advance payments for some
products and services and with the contractual control of the use of the Foundation’s intellectual property
. The
Foundation retains a right to terminate contracts and cancel all rights and licences, although such occurrences are
expected to be infrequent and immaterial.
The credit risk on xed-interest investments is limited because the Foundation only invests in highly liquid
investments, all of which are high credit quality, and are held to maturity.
Credit risk also arises from cash and cash equivalents and deposits held with banks and nancial institutions. For
banks and nancial institutions, only independently rated parties with high credit ratings are accepted. Counterparty
credit ratings are reviewed regularly.
The carrying amount of the Foundation’s nancial assets represents the maximum credit exposure.
86 IFRS Foundation Annual Report - FINANCIALS
10. Risk management (continued)
Market risk
Market risk is the risk that changes in market prices will affect the Foundation’s income or the value of its holdings
of nancial instruments. The Foundation is exposed to risks from movements in interest rates, asset prices and
foreign currency exchange rates that affect its assets and forecasted transactions.
Interest rate risk
Interest rate risk is the risk that the xed-income bonds will lose value due to an increase in interest rates. T
o
mitigate this risk, the Foundation’s objective is to hold sufcient cash reserves to meet its liabilities as they fall due
so that it can hold bonds to maturity. The Foundation only invests in short duration bonds, all of which are of high
credit quality. The sensitivity analysis for bond prices is shown within Price risk below.
In August 2020 the International Accounting Standards Board issued Interest Rate Benchmark Reform―Phase 2.
The Foundation is not exposed to hedging or directly affected by interest rate benchmark reform. No contractual
cash ows of nancial assets or nancial liabilities measured at amortised costs changed as a result of interest rate
benchmark reform.
Foreign currency management
The Foundation receives contributions and other inows in a variety of currencies—mainly British pound sterling,
Canadian dollar, euro and US dollar. Because foreign exchange rates uctuate, the Foundation is exposed to some
variability of its cash ows available in each currency to meet future staff costs, ofce costs and other services.
To mitigate this risk the Foundation ensures that it holds sufcient cash in each currency to meet related future
expenditure needs. Subsequent to 2019 the Foundation has not entered into foreign exchange contracts because
the Foundation’s current level of surplus reserves are deemed sufcient to absorb foreign exchange risk. The
Trustees continue to monitor the Foundation’s foreign exchange risk at least on an annual basis.
Exposure
As of 31 December the Foundation’s net exposure to foreign exchange risk is disclosed below. The exposure on
translating the nancial statements of overseas operations into the presentation currency is excluded from this
analysis. The amounts shown are translated into British pound sterling at the closing rate:
2022 2022 2022 2022 2021 2021 2021
£'000 £'000 £'000 £'000 £'000 £'000 £'000
Canadian
dollar
Euro US dollar Total Euro US dollar Total
Financial assets 5,291 7,549 3,012 15,852 4,713 2,729 7,442
Financial liabilities
(301) (373) (84) (758) - - -
Total exposure 4,990 7,176 2,928 15,094 4,713 2,729 7,442
87 IFRS Foundation Annual Report - FINANCIALS
10. Risk management (continued)
Foreign currency management (continued)
Sensitivity
The effect of a uctuation in exchange rates on the Foundation’s nancial assets and nancial liabilities carried at
the reporting date, all other variables held constant, is shown in the table below.
The effect of a 10% strengthening
of the Canadian dollar, euro and US dollar against British pound sterling would increase income after tax by £1.5
million (2021: £744,000). A 10% weakening in the exchange rates on the same basis would have decreased
income after tax by the same amount.
£'000 £'000 £'000 £'000
Canadian
dollar
Euro US dollar Total
31 December 2022 499 718 293 1,510
31 December 2021 - 471 273 744
Price risk
The Foundation is exposed to other price risk in respect of its listed bond securities and investment portfolio which
are held at fair value through prot or loss (Note 11). The investment portfolio includes equities, commodities and
real estate. The strategy of the portfolio is low to medium risk and is globally diversied.
Sensitivity
For the listed bonds, an average volatility of 3% has been observed during 2022 (2021: 2%). This volatility gure is
considered to be a suitable basis for estimating how income would have been affected by changes in market prices
that were reasonably possible at the reporting date. If the quoted prices for these bonds increased or decreased by
that amount income after tax would have changed by £439,000 (2021: £437,000).
For the investment portfolio, an average volatility of 8% has been observed in the period. If the quoted price for
the securities within the portfolio increased or decreased by that amount, income after tax would have changed by
£202,000.
88 IFRS Foundation Annual Report - FINANCIALS
11. Investments
The Foundation has historically invested in low-risk, short-duration AAA-rated bonds.
The bonds are recognised at fair value and subsequently measured at fair value through prot or loss.
Bond values are quoted on active markets, described as Level 1 in IFRS 13 Fair Value Measurement.
Fair values and face values of current and non-current bonds are presented in this table:
2022 2022 2021 2021
Fair value Face value Fair value Face value
£’000 £’000 £’000 £’000
Bond portfolio
Current, including accrued interest 6,920 6,991 5,932 5,826
Non-current, including accrued interest
7,721 8,437 15,239 15,323
14,641 15,428 21,171 21,149
In June 2022 the Foundation invested £2.5 million of its funds into the Barclays Medium-Low Risk Multi Asset
Class Sustainable Portfolio (‘investment portfolio’). The investment portfolio expands the asset class range that the
Foundation has historically invested in by introducing assets such as equities, commodities and real estate. The
strategy of the portfolio is globally diversied.
The investment portfolio is recognised at fair value and subsequently measured at fair value through prot or loss.
The investment portfolio valuation is quoted on active markets, described as Level 1 in IFRS 13 Fair Value
Measurement.
The fair value and face value of the investment portfolio is presented in this table:
2022 2022
Fair value Face value
Investment portfolio
£’000 £’000
Non-current, including interest
2,524 2,500
2,524 2,500
All other nancial instruments are initially measured at fair value and subsequently measured at amortised cost.
Due to the short-term nature, the carrying value of cash and cash equivalents, trade and other receivables, and
trade and other payables approximates their fair value. Included in nancial liabilities are lease obligations with a
total carrying amount of £4.7 million (2021: £4.6 million). The fair value of these is £4.5 million (2021: £4.6 million).
89 IFRS Foundation Annual Report - FINANCIALS
12. Finance income and nance costs
13. Events after the reporting period
There have been no events since 31 December 2022 that required an adjustment to the nancial statements.
On 1 March 2023, the Trustees of the Foundation signed a MoU with the Financial Accounting Standards
Foundation of Japan (FASF). The MoU renews the FASF’s commitment to the Foundation and extends the
commitment to provide support for the work of the IASB and the ISSB for a further ve years.
2022 2021
Finance income
£’000 £’000
Interest income 285 191
Fair value gains on forward foreign exchange contracts - 67
Fair value gains on investment portfolio 24 -
Exchange gains on cash and cash equivalents
1,534 269
1,843 527
Finance costs
Interest on lease liabilities (128) (142)
Fair value losses on forward foreign exchange contracts (34) (259)
Fair value losses on bonds (695) (381)
Exchange losses on cash and cash equivalents
(882) (64)
(1,739) (846)
Fair value gains and losses from bonds do not include interest income.
90 IFRS Foundation Annual Report - APPENDICES
Funding providers
Amounts translated into British pound sterling on date received
Jurisdiction Organisation
Australia
£529,800
Financial Reporting Council (FRC)
Brazil
£74,550
£50,000+
Itaú Unibanco
Less than
£25,000
Instituto dos Auditores Independentes do Brasil (IBRACON)
Petróleo Brasileiro S.A. (Petrobras)
Canada
£6,478,939
£500,000+
Chartered Professional Accountants of Canada
Less than
£25,000
Ofce of the Superintendent of Financial Institutions
Through the Coalition of Canadian Champions (individual contributions disclosed)
£1,000,000+
Chartered Professional Accountants of Canada
£250,000+
BMO Financial Group Royal Bank of Canada
Desjardins Group TD Bank Group
£100,000+
Alberta Investment Management Corporation Magna International Inc.
BDO Canada LLP OMERS
Canada Life Ontario Teachers’ Pension Plan
Deloitte
(The) Public Sector Pension Investment Board
(PSP Investments)
Ernst & Young LLP (EY) PwC Canada
First Nations Financial Management Board TELUS
Healthcare of Ontario Pension Plan TMX Group
iA Financial Group - iA Groupe Financier
On 3 March 2023 CDPQ (a founding member of the Canadian Coalition of Champions) signed a pledge
agreement for an annual contribution of CAD200,000 over the ve-year ISSB seed funding period
Through the Coalition of Canadian Champions (individual contributions not disclosed)
ATB Financial KPMG LLP, Canada
Bell Canada National Bank of Canada
CIBC Sun Life
Co-operators Group Limited Suncor Energy
CPP Investments The Bank of Nova Scotia
Intact Financial Corporation -
Intact Corporation Financière
Other
Chinese Taipei
£65,100
Less than
£25,000
Accounting Research and Development
Foundation
Taiwan Futures Exchange
Taipei Exchange Taiwan Stock Exchange Corporation
Taiwan Depository & Clearing Corporation
EU
£3,440,429
£1,000,000+
European Commission
£100,000+
European Climate Foundation
France Voluntary levy through the Ministry of the Economy, Finance and Industrial and Digital Sovereignty.
The Foundation would like to thank the individual companies and accounting rms that contribute to the
voluntary levy.
£878,951
Ministry of the Economy, Finance and Industrial and Digital Sovereignty
91 IFRS Foundation Annual Report - APPENDICES
Funding providers (continued)
Jurisdiction Organisation
Germany
£4,010,705
£1,000,000+
Hessisches Ministerium für Wirtschaft, Energie, Verkehr und Wohnen
Voluntary contribution through the Institut der Wirtschaftsprüfer in Deutschland e.V. (IDW)
£100,000+
Deloitte GmbH KPMG AG
Ernst & Young GmbH PwC GmbH
£25,000+
BDO AG
Less than
£25,000
Baker Tilly GmbH & Co. KG Institut der Wirtschaftsprüfer in Deutschland e.V. (IDW)
Ebner Stolz GmbH & Co. KG Mazars GmbH & Co. KG
ETL AG PKF Fasselt Partnerschaft mbB
Genossenschaftsverband - Verband der Regionen
e.V.
Rödl & Partner GmbH
Grant Thornton AG RSM GmbH
Voluntary levy through the Accounting Standards Committee of Germany (DRSC)
£100,000+
German Investment Funds Association (BVI)
£50,000+
Allianz SE Interessensgemeinschaft Frankfurter
Kreditinstitute GmbH
Deutsche Bank AG
£25,000+
BASF AG Helaba Landesbank Hessen-Thüringen Girozentrale
Bayer AG
Henkel AG & Co. KGaA
BMW AG Inneon Technologies AG
Continental AG Mercedes Benz Group (Daimler AG)
Deutsche Bank AG Merck KGaA
Deutsche Börse Münchener Rückversicherungs-Gesellschaft
Deutsche Post AG RWE AG
Deutsche Telekom AG SAP SE
DZ Bank AG Siemens AG
Fresenius Medical Care AG & Co. KGaA Siemens Healthineers AG
Less than
£25,000
Aareal Bank AG Generali Deutschland AG
Adesso SE Gesamtverband der Deutschen
Versicherungswirtschaft e.V.
Adidas AG Hannover RE
AXA Konzern AG Hannover Rück
B. Metzler seel. Sohn & Co. AG Hapag-Lloyd AG
BayWa AG Heidelberger Druckmaschinen AG
Bilnger SE Hensoldt AG
Ceconomy AG Hornbach Holding AG & Co. KGaA
Commerzbank AG Instone Real Estate Group SE
Covestro AG KfW Bankengruppe
DekaBank Klöckner & Co. SE
Dermapharm Holding SE Knorr-Bremse AG
Deutsche Bahn AG Krones AG
Deutsche Beteiligungs AG Lanxess AG
Deutsche Börse AG Mercedes-Benz Group AG (vormals Daimler)
Dürr AG Metro AG
EnBW Energie Baden-Württemberg AG MTU Aero Engines AG
Evonik Industries AG Münchener RE
Fielmann AG ODDO BHF AG
GEA Group AG Patrizia SE
92 IFRS Foundation Annual Report - APPENDICES
Jurisdiction Organisation
Germany (continued)
Less than
£25,000
Robert Bosch GmbH Thyssenkrupp AG
Sartorius AG TRATON SE
Schaefer AG UBS Europe SE
SGL Carbon SE UniCredit Bank AG
Siemens Energy AG Uniper SE
Siltronic AG VARTA AG
SIXT SE Villeroy & Boch AG
Softing AG Vitesco Technologies Group AG
Südzucker AG Vonovia SE
Symrise AG Wacker Chemie AG
Talanx Wintershall Dea AG
TeamViewer AG
Zürich Beteiligungs AG
Hong Kong SAR
£102,732
£50,000+
The Securities and Futures Commission of Hong Kong
Less than
£25,000
Hong Kong Monetary Authority
India
£36,000
The Tata Group
Indonesia
£71,400
£25,000+
Financial Services Authority (OJK) Indonesia Stock Exchange
International
£110,994
£50,000+
Global Accounting Alliance
Less than
£25,000
Bank for International Settlements
Ireland
£9,408
Central Bank of Ireland
Israel
£17,000
Israel Securities Authority
Italy
£652,153
Organismo Italiano di Contabilità
Japan
£3,532,742
£1,000,000+
Financial Accounting Standards Foundation
£500,000+
Financial Services Agency of Japan
Kazakhstan
£7,348
National Bank of Kazakhstan
Malaysia
£68,250
Malaysian Accounting Standards Board
Funding providers (continued)
93 IFRS Foundation Annual Report - APPENDICES
Jurisdiction Organisation
Netherlands
£405,750
£250,000+
Ministry of Finance
Less than
£25,000
De Nederlandsche Bank
New Zealand
£82,187
External Reporting Board
People's Republic of China Through system created by the Ministry of Finance
£2,574,216
£1,000,000+
Ministry of Finance of the People's Republic of China
£250,000+
Chinese Institute of Certied Public Accountants
£100,000+
Shanghai Stock Exchange Shenzhen Stock Exchange
£50,000+
China Development Bank China Investment Corporation
£25,000+
China Communications Construction Company Ltd. China Petroleum & Chemical Corporation
China National Offshore Oil Corporation PetroChina Company Limited
China Pacic Insurance (Group) Co., Ltd.
Less than
£25,000
Agricultural Bank of China China Mobile Communication Co., Ltd.
Bank of China China Telecom Corp., Ltd.
Bank of Communications Co., Ltd. Huaneng Power International Inc
China CITIC Bank Corporation Limited Industrial and Commercial Bank of China Limited
China Construction Bank Corporation PICC Property and Casualty Company Limited
China Merchants Bank
Portugal
£21,294
Banco de Portugal
Republic of Korea Contributions organised through Korea Accounting Standards Board
£1,628,530
£1,000,000+
Korea Institute of Certied Public Accountants
£100,000+
Korea Accounting Standards Board
£25,000+
Financial Supervisory Service Samsung Electronics Co., Ltd.
Less than
£25,000
Celltrion, Inc. POSCO
Deloitte Anjin LLC NongHyup Financial Group Inc.
Ernst & Young Han Young Samil PricewaterhouseCoopers
Hana Financial Group Inc. Samsung C&T Corporation
Hyosung Corporation Samsung Card Co., Ltd.
Hyundai Motor Company Samsung Fire & Marine Insurance Co., Ltd
Kakao Corp. Samsung Life Insurance Co., Ltd.
KB Financial Group Inc. Samsung SDI Co., Ltd.
KIA Corporation Samsung Securities Co., Ltd.
Korea Gas Corporation Samsung SDS Co., Ltd.
KPMG Samjong Accounting Corp. Shinhan Financial Group Co., Ltd.
LG Chem, Ltd SK Hynix Inc.
LG Corp. SK Telecom Co., Ltd.
LG Household & Health Care Ltd. Woori Financial Group Inc.
LG Uplus Corp.
Funding providers (continued)
94 IFRS Foundation Annual Report - APPENDICES
Jurisdiction Organisation
Saudi Arabia
£154,852
Saudi Organization for Certied Public Accountants (SOCPA)
Singapore
£70,000
Ministry of Finance
South Africa
£7,718
Johannesburg Stock Exchange
Switzerland
£64,752
SwissHoldings
Thailand
£85,314
Federation of Accounting Professions (TFAC)
United Kingdom
£3,593,000
£1,000,000+
Department for Business, Energy & Industrial Strategy
£500,000+
Levy system organised by Financial Reporting Council
£250,000+
London Stock Exchange Group
United States of America
£1,212,450
£500,000+
PricewaterhouseCooper LLP
1
£100,000+
CFA Institute Heising Simons Foundation
£50,000+
AICPA Salesforce
Bank of America Corporation
Less than
£25,000
Board of Governors of the US Federal
Reserve System
Morgan Stanley
Institute of Mathematics and its Applications PepsiCo, Inc.
International accounting rms
1
£2,512,440
(US$577,500
each)
Deloitte KPMG
EY PwC
£100,000+
BDO (Brussels Worldwide Services BVBA)
(US$300,000)
Mazars (US$200,000)
Grant Thornton (US$300,000)
Funding providers (continued)
1 Deloitte, EY, KPMG and PwC have licensing agreements with the Foundation, for which annual fees are received in addition to their voluntary
contributions. The rms contribute equally to the Foundation—differences in reported funding in any period is due to timing of receipt.
95
PUBLIC AUTHORITY MEMBER POSITION
CHAIR
International Organization of Securities
Commissions (IOSCO)
Jean-Paul Servais Chair of the Belgian Financial Services and Markets Authority
and representative of the IOSCO Board (Chair)
MEMBERS
Brazil Securities and Exchange Commission
(Comissão de Valores Mobiliários)
João Pedro Barroso do
Nascimento
Chair
European Commission Mairead McGuinness European Commission Commissioner, Financial Services,
Financial Stability and Capital Markets Union
IOSCO Growth and Emerging Markets
Committee
Yusuf Kaya Board Member of the Capital Markets Board of Turkey
Japan Financial Services Agency Takashi Nagaoka Deputy Commissioner for International Affairs
People’s Republic of China Ministry of Finance Zhu Zhongming Vice Minister
South Korea Financial Services Commission Jeong Kag Kim Standing Commissioner
United States Securities and Exchange
Commission
Gary Gensler Chair
OBSERVERS
Basel Committee on Banking Supervision Katherine Tilghman Hill Accounting Experts Group (Chair); representative of the Basel
Committee on Banking Supervision
IOSCO European Regional Committee Luís Laginha de Sousa Comissão do Mercado de Valores Mobiliários, Portugal (Chair);
representative of the IOSCO European Regional Committee
More information about the Monitoring Board can be found at www.iosco.org/about/?subsection=monitoring_board.
IFRS Foundation Monitoring Board
AS AT 31 DECEMBER 2022
IFRS Foundation Annual Report - APPENDICES
96 IFRS Foundation Annual Report - APPENDICES
NAME POSITION ORGANISATION CURRENT TERM ENDS
Renata Bandeira Controllership and Tax Director, Brazil Azul Airlines 30 June 2023
Andre Besson Head of Financial Reporting
Guidelines
Nestlé SA 30 June 2024
Lisa Bomba Head of Group Financials
Deutsche Bank 30 June 2025
Jens Freiberg Head of Capital Markets BDO 30 June 2025
Karsten Ganssauge Partner, Global Corporate Reporting
Services
PwC 30 June 2025
Karen Higgins Audit and Assurance Partner Deloitte 30 June 2024
Guy Jones Partner, Professional Practice Group,
Canada
EY 30 June 2024
Goro Kumagai Senior Fellow, Industry-Government
Academia Collaboration Ofce, Global
Strategy Department
Mizuho Securities Company
Limited
30 June 2024
M P Vijay Kumar Executive Director and Group Chief
Financial Ofcer
Sify Technologies Limited 30 June 2024
Yanli Liu Executive Vice President and Chief
Financial Ofcer
State Grid International
Development Company Limited
30 June 2025
Sophie Massol Head of Group Accounting Policies,
France
AXA 30 June 2023
Jon Nelson Senior Vice President, Head of Vehicle
Economics and Synergy
Implementation
Stellantis 30 June 2023
Brian O'Donovan Partner KPMG 30 June 2025
Donné Sephton Head of Advisory Services FirstRand Limited 30 June 2023
IFRS Interpret
ations Committee
AS AT 31 DECEMBER 2022
NON-VOTING CHAIR
Bruce Mackenzie,
1
International Accounting Standards Board
Observer organisations
• Basel Committee on Banking Supervision
• European Commission
• IOSCO
Yang Zheng (New China Life Insurance Company)
completed his term on 30 June 2022.
More information about the IFRS Foundation
Interpretations Committee, including member
biographies, can be found at www.ifrs.org/groups/
ifrs-interpretations-committee.
1 Bruce Mackenzie took over in March 2022 from Sue Lloyd, who moved to the ISSB as its inaugural Vice-Chair.
97 IFRS Foundation Annual Report - APPENDICES
IFRS Advisory Council
REPRESENTED BODY REPRESENTED BY POSITION
AIA Group Garth Jones Group Chief Financial Ofcer
Banco Bilbao Vizcaya Argentaria María Ángeles Pelaez
Moron
Head of Global Financial Accounting
Basel Committee on Banking Supervision
Bayer Martin Schloemer Senior Vice President, Head of Global Accounting
BDO Ehud (Udi) Greenberg Professional Practice Partner at BDO Israel and at BDO Global
IFRS Advisory Group
BusinessEurope Kristian Koktvedgaard Head of VAT, accounting and auditing for the Confederation of
Danish Industry
Capital Markets Board of Turkey Sibel Ulusoy Tokgöz Deputy Head of the Accounting Standards Department
CFA Institute Giuseppe Ballocchi Member of CFA Institute’s Future of Finance Content Council and
partner at Alpha Governance Partners
Chinese Ministry of Finance Xianzhong Li Director General of the Accounting Regulatory Department
Corporate Reporting Users’ Forum (CRUF) Greig Paterson Managing Director of UK Insurance Research at Keefe, Bruyette
& Woods
Council of Institutional Investors James Andrus Investment Manager of Sustainable Investments at the California
Public Employees’ Retirement System
Deloitte Trevor Derwin Partner at Deloitte Africa
Eumedion Martijn Bos Policy Advisor on Reporting and Audit
European Accounting Association Thorsten Sellhorn EAA President; Professor of Accounting and Director of the
Institute for Accounting, Auditing and Analysis at Ludwig-
Maximilian University Munich’s School of Management
European Central Bank David Grünberger Heads the Prudential Regulation and Accounting Section
European Federation of Financial Analysts
Societies (EFFAS)
Javier de Frutos Chair of the Commission on Financial Reporting of the European
Federation of Financial Analysts Societies
European Financial Reporting Advisory
Group (EFRAG)
Saskia Slomp CEO
European Securities and Markets Authority
(ESMA)
Isabelle Grauer-Gaynor Head of Corporate Finance and Reporting Unit
External Reporting (XRB), New Zealand Ken Warren Chief Accounting Advisor for The New Zealand Treasury
EY Michiel van der Lof Partner, EMEIA IFRS Leader
Financial Executives International Ron Edmonds Controller and Vice President of Controllers and Tax for Dow
Grant Thornton Fergus Condon Partner – Financial Accounting Advisory Services
Institute of Certied Public Accountants of
Kenya
Cliff Nyandoro Magara Head of Standards and Technical Services
Individual (University of São Paulo—School
of Accounting and Actuarial Science)
Eduardo Flores Assistant Professor in the Accounting and Actuarial Science
Department
Individual (Johannesburg Stock Exchange) Tania Wimberley Head of Financial Reporting Issuer Regulation Division
AS AT 31 DECEMBER 2022
Chair: Bill Coen, former Secretary General of the Basel Committee on Banking Supervision
98 IFRS Foundation Annual Report - APPENDICES
IFRS Advisory Council (continued)
REPRESENTED BODY REPRESENTED BY POSITION
Insurance Europe (European Insurance and
Reinsurance Federation)
Anna Vidal Tuneu Vice-Chair of the Financial Reporting Working Group (FRWG);
Director of Group Accounting Policies and Regulation at
CaixaBank Group
International Actuarial Association Andrew Chamberlain Chair of the Actuarial Standards Committee
International Association for Accounting
Education and Research (IAAER)
Leslie Hodder Professor of Accounting at Indiana University’s Kelley School of
Business
International Association of Insurance
Supervisors (IAIS)
Romain Paserot Deputy Secretary General
International Cooperative Alliance Emmanuelle Revolon CFO
International Corporate Governance
Network
Ian Burger Head of Responsible Investment
International Federation of Accountants Kevin Dancey CEO
International Monetary Fund Ellen Gaston Senior Financial Sector Expert in the Financial Supervision
and Regulation Division of the Monetary and Capital Markets
Department
International Organization of Securities
Commissions (IOSCO)
Marie Seiller Member of IOSCO Committee on Issuer Accounting, Audit and
Disclosures; Chief Accountant at the French Autorité des Marchés
Financiers (AMF)
Investment Association Emma Millar Director EMEA Accounting Policy Blackrock
Investment Company Institute Alan Trotter Chief Financial Ofcer: Europe, Middle East & Africa at Invesco
Japanese Institute of Certied Public
Accountants (JICPA)
Aiko Sekine Advisor
KPMG Melissa Taylor Partner
Lukoil Sergey Epifanov Head of the International Financial Reporting Department
Malaysian Accounting Standards Board
(MASB)
Bee Leng Tan Executive Director
Organismo Italiano di Contabilità OIC Alberto Giussani President
PwC Henry Daubeney Global Head of IFRS and ESG Reporting
S&P Global Ratings Osman Sattar Director and Accounting Specialist of the EMEA Financial
Institutions Group
The Securities Analysts Association of
Japan (SAAJ)
George Iguchi Chief Corporate Governance Ofcer and Executive Director at
Nissay Asset Management
South Asian Federation of Accountants
(SAFA)
M P Vijay Kumar Chair of Accounting Standards Board at the Institute of Chartered
Accountants of India (ICAI)
World Bank Barbara McGowan Head of Accounting Policy
Xiamen University Feng Liu Chair Professor and Director at the Centre for Accounting Studies
Observer organisations
• European Commission
• Japan Financial Services Agency
• US Securities and Exchange Commission
Antonio Quesada at the IOSCO and Georg Lanfermann
at the Accounting Standards Committee of Germany
(DRSC) stepped down during 2022.
More information about the Advisory Council can be
found at www.ifrs.org/groups/ifrs-advisory-council.
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