The International Financial Reporting Standards Foundation cut costs and advanced global standards in 2025, according to its annual report, which also outlined goals for 2026.
The report and audited financial statements for the year ending Dec. 31, 2025, highlighted progress in the work of the International Accounting Standards Board and the International Sustainability Standards Board and a total income of £1.3 million for the year, bringing total reserves to £49.2 million.
The IFRS credited "the impact of the cost-reduction program, continued cost management and fiscal discipline, as well as several one-off factors" for those numbers, explaining that factors included lower spending than expected on technology projects and recruitment, which were deferred to this year.
The cost-cutting program was started in 2024 to improve the IFRS Foundation's efficiency, and involved organizational restructuring, a cost review of staff and governance, stronger income-generation efforts, and the start of improving the Foundation's longer-term strategy.
The IFRS Foundation's report also outlined key accounting projects in 2025, including the issuance of revised versions of the IFRS for SMEs Accounting Standard and Practice Statement 1 Management Commentary; new guidance on disclosing uncertainties in the financial statements and hyperinflationary translation; consulting on a new risk mitigation accounting model; supporting jurisdictions adopting and using IFRS Sustainability Disclosure Standards; and clarifying aspects of IFRS S2 Climate-related Disclosures; among others.
"'I am pleased to report another year of progress in our mission to deliver enhanced transparency, accountability and efficiency for capital markets globally through high-quality accounting and sustainability disclosure standards," said Erkki Liikanen, chair of the IFRS Foundation Trustees, in a statement. "As we reflect on 25 years of progress, it is clear that IFRS Standards have become a global public good. We are undertaking the necessary transformational change to ensure the Foundation is fit for the future. I thank all of those within and outside the organization who have worked so diligently in support of our work."
This year, the IFRS Foundation said it plans to continue its efficiency efforts, particularly focused on technical capacity, cost management, and sustainable funding.
