IFRS Foundation Trustees discuss strategic priorities and progress on transformation programme to ensure organisation is fit for the future

The IFRS Foundation Trustees met in London on 21–23 October to exercise their governance, strategy and oversight responsibilities. They reinforced the Foundation's mission of developing standards that underpin capital markets globally by delivering financially material information to investors and the Trustees’ commitment to securing its sustainable funding.

IFRS Accounting Standards and IFRS Sustainability Disclosure Standards (ISSB Standards), developed by the Foundation’s two boards—the International Accounting Standards Board (IASB) and the International Sustainability Standards Board (ISSB)—are recognised as a global public good, adding significant value to capital markets and jurisdictions worldwide. The standard-setting, which follows a transparent and rigorous due process, requires specialist skills, global engagement and sustainable funding structured to avoid undue influence from specific jurisdictions or stakeholder groups.

Among the topics discussed during the meeting were regional developments, including feedback received from key stakeholders such as the US Securities and Exchange Commission; significant progress in the adoption of ISSB Standards in Africa, Asia and the Americas; opportunities and risks related to the EU’s Omnibus process for the ISSB’s global baseline of sustainability-related disclosures; and the importance of maintaining a good dialogue with regulators and standard-setters globally.

The Trustees received updates from the Chairs of the IASB and the ISSB on their technical work plans, including plans to carry out their respective agenda consultations concurrently in 2027.

Transformation programme

The Trustees reviewed progress on the Foundation’s two-year transformation programme, designed to ensure the organisation is fit for the future. Key parts of the programme include the broadly completed cost-savings review and the funding strategy.

The Foundation has separate funding for its two boards with short- and mid-term funding priorities:

• IASB—due to inflation and some jurisdictions reducing or ending their contributions in recent years, spending power from jurisdictions to support the IASB’s work has contracted in real terms. The short-term priority is to work with jurisdictions to adjust their contributions for inflation and increase the number of jurisdictions contributing. Currently, less than a quarter of the jurisdictions that require use of IFRS Accounting Standards contribute to the funding of the IASB.
• ISSB—seed funding arrangements that have successfully supported the creation and early years of the ISSB’s work are coming to an end in 2026. The short-term priority is to renew or extend these arrangements as a transitional stage towards a longer-term funding model.

The mid-term objective for both boards is to implement a ‘fair share’ funding model based on broader jurisdictional funding, with those benefiting from adopting or otherwise using the Standards contributing to their development and maintenance.

Erkki Liikanen, Chair of the Trustees, said:

The IFRS Foundation fulfils capital markets’ demand for decision-useful information by delivering standards anchored on the concept of financial materiality. Developing the standards requires a strong, independent institution, enabled by sustainable and diversified funding.

The Trustees also discussed:

• the Foundation’s financial position and budget;
• the principles and timeline for the development of a longer-term organisational strategy;
• plans for strengthening the HR function and organisational culture;
• progress on plans to consult in the first half of 2026 on proposed targeted amendments to the Foundation’s Constitution to seek stakeholder feedback on how best to maintain appropriate diversity and geographic balance of the boards, following the decision earlier this year to gradually transition from 14 to 10 members on each board; and
• the impact of advances in generative artificial intelligence (AI).
  

As the Foundation continues to evolve, the Trustees emphasised their commitment to effective communication and stakeholder engagement to ensure a robust understanding of the Foundation's goals and financial position.