INTERNATIONAL FINANCIAL REPORTING STANDARDS FOUNDATION

THE IFRS FOUNDATION HAS A THREE-TIER GOVERNANCE STRUCTURE, BASED ON TWO INDEPENDENT STANDARD-SETTING BOARDS OF EXPERTS (INTERNATIONAL STANDARDS FOUNDATION 13-4164140 INTERNATIONAL FINANCIAL REPORTING ACCOUNTING STANDARDS BOARD IASB, AND INTERNATIONAL SUSTAINABILITY STANDARDS BOARD - ISSB), GOVERNED AND OVERSEEN BY TRUSTEES FROM AROUND THE WORLD (IFRS FOUNDATION TRUSTEES) WHO IN TURN ARE ACCOUNTABLE TO A MONITORING BOARD OF PUBLIC AUTHORITIES (IFRS FOUNDATION MONITORING BOARD). THE IASB IS AN INDEPENDENT ACCOUNTING STANDARD-SETTING BODY OF THE IFRS FOUNDATION. ITS 14 MEMBERS ARE APPOINTED FROM VARIOUS COUNTRIES AND PROFESSIONAL BACKGROUNDS, INCLUDING ACADEMIA, ACCOUNTANCY, INVESTMENT, REPORTING COMPANIES, 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. THE ISSB IS AN INDEPENDENT SUSTAINABILITY DISCLOSURE STANDARD-SETTING BODY OF THE IFRS FOUNDATION. ITS 14 MEMBERS ARE APPOINTED FROM VARIOUS COUNTRIES AND PROFESSIONAL BACKGROUNDS, INCLUDING ACADEMIA, ACCOUNTANCY, INVESTMENT, SUSTAINABILITY, MARKET OR FINANCIAL REGULATION AND REPORTING COMPANIES. THE ISSB ISSUES IFRS SUSTAINABILITY DISCLOSURE STANDARDS AND THE IFRS SUSTAINABILITY DISCLOSURE TAXONOMY, WHICH ENABLES DIGITAL REPORTING. THE ISSB ALSO MAINTAINS THE SASB STANDARDS. MEMBERS OF THE IASB AND ISSB ARE APPOINTED BY THE TRUSTEES OF THE IFRS FOUNDATION THROUGH AN OPEN AND RIGOROUS PROCESS. THE TRUSTEES, IASB AND ISSB ARE SUPPORTED BY: - THE IFRS ADVISORY COUNCIL, THE FORMAL EXTERNAL ADVISORY BODY TO THE BOARD AND TRUSTEES, CONSISTING OF A WIDE RANGE OF REPRESENTATIVES FROM GROUPS AND INDIVIDUALS THAT ARE AFFECTED BY AND INTERESTED IN THE FOUNDATION'S WORK. - THE INTEGRATED REPORTING AND CONNECTIVITY COUNCIL IS AN ADVISORY BODY TO THE IFRS FOUNDATION TRUSTEES, THE IASB AND ISSB. THE COUNCIL PROVIDES GUIDANCE ON: HOW REPORTING REQUIRED BY THE IASB AND ISSB COULD BE INTEGRATED; AND HOW THE IASB AND ISSB COULD CONSIDER APPLYING PRINCIPLES AND CONCEPTS FROM THE INTEGRATED REPORTING FRAMEWORK TO THEIR PROJECTS. - THE IFRS INTERPRETATIONS COMMITTEE, THE BOARD'S INTERPRETATIVE BODY, WHOSE REMIT IS TO RESPOND TO QUESTIONS ABOUT THE APPLICATION OF THE ACCOUNTING STANDARDS (AND DO OTHER WORK AT THE REQUEST OF THE IASB), CONSISTING OF MEMBERS DRAWN FROM A VARIETY OF COUNTRIES AND PROFESSIONAL BACKGROUNDS. - THE ACCOUNTING STANDARDS ADVISORY FORUM, CONSISTING OF NATIONAL STANDARD-SETTERS AND REGIONAL STANDARD-SETTING BODIES, CONTRIBUTING TOWARDS THE GOAL OF DEVELOPING GLOBALLY ACCEPTED HIGH-QUALITY ACCOUNTING STANDARDS. - THE ISSB INVESTOR ADVISORY GROUP, A GROUP OF LEADING ASSET OWNERS AND STANDARDS FOUNDATION INTERNATIONAL FINANCIAL REPORTING ASSET MANAGERS IN VARIOUS MARKETS WHO ARE COMMITTED TO IMPROVING THE QUALITY AND COMPARABILITY OF SUSTAINABILITY-RELATED FINANCIAL DISCLOSURES. - THE SUSTAINABILITY STANDARDS ADVISORY FORUM, A GROUP OF NOMINATED MEMBERS FROM JURISDICTIONAL AND REGIONAL AUTHORITIES INVOLVED IN SUSTAINABILITY-RELATED REPORTING. - THE SUSTAINABILITY CONSULTATIVE COMMITTEE, A GROUP TO IDENTIFY, INFORM AND ADVISE THE ISSB ON PRIORITY SUSTAINABILITY MATTERS AND RELATED TECHNICAL PROTOCOLS, AS WELL AS SIGNIFICANT INTERDEPENDENCIES BETWEEN SUSTAINABILITY MATTERS. - BOTH BOARDS ARE SUPPORTED BY THE TECHNICAL STAFF FOUNDATION: CONDUCTING RESEARCH AND OTHER TECHNICAL SUSTAINABILITY AND ACCOUNTING ACTIVITIES, EXTENSIVE ENGAGEMENT WITH STAKEHOLDERS AND COLLABORATIVE OUTREACH WITH THE WORLDWIDE INVESTOR AND BUSINESS COMMUNITY. 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 FOLLOW AND CONTRIBUTE TO OUR STANDARD-SETTING, HELPING US ENSURE THAT THE REQUIREMENTS IN IFRS STANDARDS REFLECT THE BEST THINKING WORLDWIDE. TRANSPARENCY, FULL AND FAIR CONSULTATION, AND ACCOUNTABILITY ARE THE ESSENTIAL PRINCIPLES OF OUR DUE PROCESS. BY FOLLOWING THESE PRINCIPLES, OUR DUE PROCESS BUILDS TRUST IN AND GLOBAL ACCEPTANCE OF THE IFRS FOUNDATION'S STANDARDS. THE TRUSTEES ARE RESPONSIBLE FOR THE GOVERNANCE OF THE IFRS FOUNDATION. AS PART OF THIS ROLE, THEY ENSURE THAT THE IASB, THE ISSB AND THE IFRS INTERPRETATIONS COMMITTEE FOLLOW THE DUE PROCESS. THE TRUSTEES DO SO VIA THEIR DUE PROCESS OVERSIGHT COMMITTEE (DPOC). ALL MEETING PAPERS THAT INFORM THE DISCUSSIONS OF THE IASB, ISSB AND IFRS INTERPRETATIONS COMMITTEE ARE PUBLISHED ON OUR WEBSITE, AND STAKEHOLDERS CAN WATCH THE DISCUSSIONS VIA LIVE STREAMING OR RECORDINGS. ALL STANDARD-SETTING PROPOSALS ARE PUBLISHED FOR PUBLIC CONSULTATION. THE TRUSTEES ARE CURRENTLY IN THE PROCESS OF AMENDING THE DUE PROCESS HANDBOOK TO FORMALLY INCORPORATE THE ISSB, WHICH, IN THE MEANTIME, IS REQUIRED TO FOLLOW THE REQUIREMENTS SPECIFIED IN THE HANDBOOK FOR THE IASB. BOTH BOARDS CARRY OUT PERIODIC CONSULTATIONS TO INFORM THEIR LONGER-TERM WORK PLANS. THE IFRS FOUNDATION'S REVENUE IS MADE UP OF CONTRIBUTED REVENUE AND EARNED REVENUE. CONTRIBUTED REVENUE IS MADE UP OF VOLUNTARY CONTRIBUTIONS FROM JURISDICTIONS; SEED FUNDING FOR THE ISSB FROM CANADA, CHINA, GERMANY AND JAPAN; PHILANTHROPIC GRANTS; AND CONTRIBUTIONS FROM COMPANIES, INCLUDING CORPORATE CHAMPIONS NETWORK. WHILE FUNDING MECHANISMS DIFFER, MOST JURISDICTIONS HAVE ESTABLISHED EITHER A LEVY ON COMPANIES, OR A SYSTEM OF PUBLICLY SUPPORTED FINANCING. EARNED REVENUE COMES FROM LICENSING OF INTELLECTUAL PROPERTY, PUBLICATIONS, MEMBERSHIP FEES, EDUCATION PROGRAMMES AND CONFERENCES. IN 2025 THE FOUNDATION WILL CONTINUE TO MANAGE ITS OPERATING EXPENDITURE PRUDENTLY AND EFFECTIVELY AND ARE PURSUING FURTHER INITIATIVES TO ENHANCE THE ORGANISATION'S OPERATIONAL STABILITY AND EFFICIENCY. TO LEARN MORE ABOUT THE FOUNDATIONS ACCOMPLISHMENTS AND KEY DEVELOPMENTS DURING 2024, PLEASE SEE OUR 2024 ANNUAL REPORT ON THE FOUNDATION'S WEBSITE WWW.IFRS.ORG. FOR MORE INFORMATION ON THE DEVELOPMENT AND PROGRESS OF IFRS STANDARDS, OR THE IASB AND ISSB'S WORK PLANS AND PROJECTS AT VARIOUS STAGES OF COMPLETION, PLEASE SEE THE "PROJECTS" SECTIONS OF IFRS ACCOUNTING AND IFRS SUSTAINABILITY ON THE FOUNDATION'S WEBSITE WWW.IFRS.ORG.