IFRS Foundation revenue and expenses jump 41%

The International Financial Reporting Standards Foundation's revenue and expenses both increased 41% in 2023.

The foundation's revenue increased from £48.5 million ($60.9 million) in 2022 to £68.4 million ($85.9 million) in 2023, according to its latest annual report, which was published Monday. It saw a similar increase in expenses, from £48.0 million ($60.3 million) to £67.5 million ($84.8 million).

The report attributes these significant increases to its consolidated operations, including bringing the Climate Disclosure Standards Board and the Value Reporting Foundation on board in August 2022. Revenues and expenses for 2023 reflect the full 12-month period, compared to only five months in the prior year. 

The foundation received 62% of its revenue from contributed revenue and 38% from earned revenue last year. Contributed revenue includes contributions from different jurisdictions, seed funding, philanthropic grants, and individual contributions from corporations. Earned revenue is generated from publications and subscriptions services, intellectual property licensing, membership fees, education programs, and conferences. 

The report also attributes greater expenses to increased staffing, legal and professional fees related to expanding its global presence, and the costs of scaling technology, finance, and risk and compliance processes.

Last year's accomplishments, this year's priorities

The International Accounting Standards Board, which the foundation oversees, released two new accounting standards in 2023: the IFRS 18, "Presentation and Disclosure in Financial Statements" and the forthcoming IFRS 19, "Subsidiaries without Public Accountability: Disclosures," The former is aimed at improving information about companies' financial performance, and the latter is to simplify the financial statements prepared by subsidiaries of listed groups.

The International Sustainability Standards Board, which the foundation also oversees, also launched its inaugural IFRS Sustainability Disclosure Standards in June, which provides sustainability-related disclosures for global capital markets. The foundation also opened a new office in Beijing and extended its office in Tokyo for an additional five years.

Looking ahead, the foundation is finalizing projects such as the third edition of the IASB's "IFRS for SMEs" accounting standards, and implementing sustainability disclosure standards. It is also starting new projects on intangible assets and cash flow statements.