📊IFRS Foundation's 2024 Annual Report: The Numbers Game

Acclara AI•April 1, 2025

The IFRS Foundation just dropped its 2024 annual report, highlighting major strides in accounting standards and sustainability disclosures. Here's what you need to know.

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Key Points

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- 📅 New Standards: IASB released IFRS 18 and IFRS 19 to simplify and enhance financial reporting.
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- 🌍 Global Adoption: Over 35 jurisdictions, representing more than 40% of global market capitalization, are adopting ISSB's sustainability standards.
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- 💸 Financial Snapshot: The Foundation reported a £1.6m pre-tax deficit for 2024 but is backed by £47.9m in reserves.
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- 🏢 Organizational Changes: A new operating model aims to streamline resources and cut costs, including a 15% reduction in staff costs.
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- 📈 Future Funding: The ISSB is transitioning to a market participants-led funding model, diversifying its financial support.

🌟 Major Wins of 2024

The IFRS Foundation's 2024 report is out, and it's packed with achievements. The International Accounting Standards Board (IASB) rolled out IFRS 18 and IFRS 19 to revolutionize how companies present financial data. Meanwhile, the International Sustainability Standards Board (ISSB) saw its standards adopted by over 35 jurisdictions, covering 40% of global market cap. Talk about going global!

"This annual report describes another year of substantial achievements," said Erkki Liikanen, Chair of the IFRS Foundation Trustees.

Both boards are not just sitting pretty; they consulted on multiple projects and started reviews on major standards. Busy bees, indeed.

🏗 Organizational Overhaul

Change is the name of the game at IFRS. The Trustees kicked off a massive organizational review to ensure the Foundation is future-proof. This includes a brand-new operating model designed to streamline resources and boost efficiency. And yes, that means some cost-cutting measures, like a 15% reduction in staff costs through natural attrition and redundancies.

The ISSB, established in 2021, is now hitting its stride. With a focus on consolidating fragmented disclosure landscapes, the ISSB is setting the stage for a unified approach to sustainability disclosures.

💵 Financial Health Check

Financially, 2024 was a mixed bag. The Foundation reported an income of £67.6m against operating expenses of £68.9m, resulting in a £1.6m pre-tax deficit. But don't worry; they've got £47.9m in reserves to cushion the blow. The deficit was mainly due to one-off tech upgrades and a dip in income as they transition to a new funding model.

The Trustees are optimistic, though. The organizational review aims to close this deficit gap by 2026, ensuring long-term financial stability.