International Financial Reporting Standards Foundation

The ifrs Foundation is an International, independent, not-for-profit organisation incorporated in Delaware, us. The ifrs Foundation is established to develop high-quality, understandable, enforceable and globally accepted accounting and sustainability disclosure Standards (ifrs Standards). The ifrs Foundation has a three-tier governance structure, based on two independent standard-setting boards of experts, 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 ifrs advisory council provides advice and counsel to the trustees and the boards, whilst the boards also consult extensively with a range of other standing advisory bodies and consultative groups. Ifrs Standards are developed by the two standard-setting boards, the International accounting Standards board (iasb) and the newly created International sustainability Standards board (issb). When the creation of the issb was announced, the ifrs Foundation trustees also announced the planned consolidation of the ifrs Foundation, the climate disclosure Standards board (cdsb) and the value Reporting Foundation (vrf). The cdsb consolidation was completed in january 2022; the vrf consolidation in august 2022. During 2022 a new multi-location structure was implemented by the ifrs Foundation, which now operates from offices in beijing, london, frankfurt, montreal, san francisco and tokyo. The iasb board members and technical staff are mostly based in the london office, with a small number based in tokyo. The issb board members and technical staff are mostly based in the office locations other than london. The iasb sets ifrs accounting Standards and the issb sets ifrs sustainability disclosure Standards. Ifrs accounting Standards set out how a company prepares its Financial statements. Ifrs sustainability disclosure Standards set out how a company discloses information about sustainability-related factors that may help or hinder a company in creating value. The two boards will work closely to ensure their Standards complement each other to provide investors with transparent and reliable information about a company's Financial position and performance, as well as information about sustainability factors that could create or erode its enterprise value in the short, medium and long term. The trustees who are responsible for the governance of the Foundation, serve for a renewable term of three years. The Foundation also engages in consultation with a number of advisory and consultative groups made up of accounting organisations and Financial experts from around the world and appoints new members on a regular basis. Both the iasb and issb are supported in the standard-setting process by the technical staff of the ifrs Foundation. Staff are drawn from around the world from standard-setters, academia, industry, investors, regulators, as well as the accounting and auditing professions. The ifrs Foundation has a highly regarded, inclusive and transparent due process for developing ifrs Standards. The ifrs Foundation's due process is outlined in its constitution and in further detail in the due process handbook. The ifrs Foundation constitution sets out the purpose and objectives of the organisation, as well as our governance structure and the composition requirements for the different groups within that structure. The due process handbook explicitly sets out in detail the requirements followed by the International accounting Standards board (iasb) and the ifrs interpretations committee in their work. While the due process handbook doesn't yet refer to the International sustainability Standards board (issb), the issb follows the same due process. The trustees are required to review the constitution every five years, in order to ensure the ifrs Foundation remains fit for purpose. The due process is based on the three principles of transparency, full and fair consultation, and accountability. The due process enables stakeholders globally to contribute to the work of the boards and the interpretations committee, and help us ensure that the best thinking globally is factored into the development of the accounting requirements. The ifrs Foundation due process is essential for developing high-quality ifrs Standards and for ensuring that stakeholders can have confidence that all relevant views have been considered when the Standards are developed. The trustees, who are responsible for the governance of the ifrs Foundation, are also responsible for ensuring that the International accounting Standards board, the International sustainability Standards board, and the ifrs interpretations committee follow the due process. The trustees carry out this responsibility via their due process oversight committee (dpoc). The boards work in close co-operation with stakeholders from around the world, including investors, national standard-setters, regulators, preparers, auditors, academics, and others who have an interest in the development of high-quality global Standards. The Foundation's operational staff participate with the technical staff in coordinating a comprehensive program of support and outreach activities, all designed to enable others to better understand and comment on the principles proposed. Both the iasb and the issb conduct a comprehensive review and consultation to define International standard-setting priorities and develop their project work plan. Topics may be added to the work plan if necessary between agenda consultations. This can include topics following post-implementation reviews of Standards. The work plan sets out the Foundation's projects. It includes the iasb's Financial accounting projects and the issb's sustainability related Reporting projects at different stages in the standard setting process. The work plan also includes the work of the ifrs interpretations committee on application questions, the work of the sme implementation group (questions and answers), revisions to the ifrs taxonomy, as well as strategic or cross-cutting projects. The Foundation and the boards provide public accountability through the transparency of their work, the consultation with the full range of interested parties in the standard-setting process, and their formal accountability links to the public. Public accountability, ensured by the organization's constitution and governance arrangements, is vital to the organization's success. The ifrs Foundation's trustees seek to ensure that appropriate governance arrangements are in place and observed by all parts of the organization. The ifrs Foundation receives income from two main sources: contributed revenue and earned revenue. Most of the Foundation's funding is from voluntary contributions, including contributions from jurisdcitions, issb seed funding, philanthropic grants and contributions from companies including accounting firms. Most of the Foundation's earned revenue comes from licensing intellectual property, memberships, sales of our books and publications, subscriptions services, education programmes and conferences. In 2023 the Foundation will continue to manage its operating expenditure prudently and effectively and will actively pursue further initiatives to enhance the organization's mission and goals. To learn more about the Foundation's accomplishments and key developments during 2022, please see our 2022 annual report on the Foundation's website www.ifrs.org. The annual report provides more information on the development and progress of ifrs Standards. The 2023 budget planning process has considered the establishment of the new multi-location issb, as well as the ongoing activities of the iasb based in london.

CONTENT SERVICES AND RELATED ACTIVITIES: PUBLICATIONS AND THE IFRS TAXONOMY ACTIVITIES ALL SUPPORT THE OBJECTIVES OF THE ORGANIZATION AND THE STANDARD SETTING PROCESS. A KEY CHALLENGE FOR THE CONTENT SERVICES TEAM IS TO BALANCE THE COMMERCIAL NEEDS AND THE PUBLIC INTEREST MISSION OF THE IFRS FOUNDATION. SOME KEY ACTIVITIES ARE AS FOLLOWS: * ADVISING NATIONAL AUTHORITIES ON THE IFRS ADOPTION AND CONVERGENCE PROCESS: THE TRANSLATIONS, ADOPTION AND COPYRIGHT TEAM LIAISES WITH THE RELEVANT NATIONAL LEGAL AUTHORITY TO SUPPORT AND ENABLE NATIONAL ADOPTION OF IFRS STANDARDS. THE TEAM AIMS TO SUPPORT THIS COMPLEX PROCESS WHILE MAINTAINING CONSISTENCY WITH THE FOUNDATION'S INTERNATIONAL POLICIES. * DIRECTING IFRS TRANSLATION ACTIVITIES: IFRS STANDARDS ARE TRANSLATED INTO MORE THAN 40 LANGUAGES WORLDWIDE. ANY TRANSLATION OF THE STANDARDS MUST BE CONSISTENT AND PRESERVE THE INTEGRITY OF THE ORIGINAL MEANING IN A NON-ENGLISH LANGUAGE; THE TEAM FACILITATES THIS BY PROVIDING ADVICE TO TRANSLATING JURISDICTIONS AND BY MONITORING THE VARIOUS REVIEW COMMITTEES. * TAXONOMY : THE IFRS ACCOUNTING TAXONOMY IMPROVES COMMUNICATION BETWEEN PREPARERS AND USERS OF FINANCIAL STATEMENTS THAT COMPLY WITH IFRS ACCOUNTING STANDARDS. PREPARERS CAN USE THE IFRS ACCOUNTING TAXONOMY'S ELEMENTS TO TAG REQUIRED DISCLOSURES, MAKING THEM MORE EASILY ACCESSIBLE TO USERS OF ELECTRONIC REPORTS. THE IFRS ACCOUNTING TAXONOMY REFLECTS THE PRESENTATION AND DISCLOSURE REQUIREMENTS OF IFRS ACCOUNTING STANDARDS AND INCLUDES ELEMENTS FROM THE ACCOMPANYING MATERIALS TO THE IFRS ACCOUNTING STANDARDS SUCH AS IMPLEMENTATION GUIDANCE AND ILLUSTRATIVE EXAMPLES. IN ADDITION, IT CONTAINS ELEMENTS FOR DISCLOSURES NOT SPECIFICALLY REQUIRED BY IFRS ACCOUNTING STANDARDS BUT COMMONLY REPORTED IN PRACTICE. UPDATES TO THE IFRS ACCOUNTING TAXONOMY ARE RELEASED WHEN THE INTERNATIONAL ACCOUNTING STANDARDS BOARD (IASB) ISSUES NEW OR AMENDED ACCOUNTING STANDARDS THAT AFFECT IFRS ACCOUNTING TAXONOMY CONTENT. UPDATES MAY ALSO BE RELEASED AFTER AN ANALYSIS OF DISCLOSURES COMMONLY REPORTED IN PRACTICE OR TO REFLECT IMPROVEMENTS TO THE IFRS ACCOUNTING TAXONOMY'S GENERAL CONTENT OR TECHNOLOGY. IFRS ACCOUNTING TAXONOMY UPDATES ARE SUBJECT TO PUBLIC CONSULTATION. THE ANNUAL IFRS ACCOUNTING TAXONOMY IS A COMPILATION OF UPDATES TO THE IFRS ACCOUNTING TAXONOMY PUBLISHED THROUGHOUT THE YEAR. THE IFRS FOUNDATION USUALLY PUBLISHES THE ANNUAL IFRS ACCOUNTING TAXONOMY IN THE FIRST QUARTER OF EACH YEAR. The ISSB is currently developing IFRS Sustainability Disclosure Taxonomy. THE FOUNDATION ALSO PUBLISHES EDUCATIONAL GUIDES AND SUPPORTING MATERIAL TO AID UNDERSTANDING AND USE OF THE IFRS ACCOUNTING TAXONOMY. THE IFRS TAXONOMY CONSULTATIVE GROUP REVIEWS UPDATES TO THE IFRS ACCOUNTING TAXONOMY PRIOR TO PUBLIC CONSULTATION AND PROVIDES ADVICE ON IFRS ACCOUNTING TAXONOMY-RELATED ISSUES. * SALES AND LICENSING OF FOUNDATION MATERIAL: THE FOUNDATION OFFERS A BROAD RANGE OF PRODUCTS AND PREMIUM SERVICES TO SUPPORT THE WIDESPREAD ADOPTION AND IMPLEMENTATION OF IFRS STANDARDS. THESE SERVICES INCLUDE PRINT AND DIGITAL EDITIONS OF THE IFRS FOUNDATION'S MAJOR WORKS AND SUBSCRIPTION OPTIONS FOR ALL IFRS STANDARDS AND RELATED DOCUMENTS. THE FOUNDATION ALSO SELLS PUBLICATIONS THROUGH ITS IFRS WEB SHOP. THE IFRS FOUNDATION GENERATES AN IMPORTANT PART OF ITS INCOME FROM THE USE OF THE FOUNDATION'S INTELLECTUAL PROPERTY (IP). THIS INCLUDES ITS CONTENT AND TRADE MARKS. AS THE ORIGINATOR AND OWNER OF IFRS STANDARDS, INCLUDING IAS STANDARDS, IFRIC INTERPRETATIONS AND SIC INTERPRETATIONS (COLLECTIVELY THE 'STANDARDS'), THE FOUNDATION ENGAGES IN LICENSING ITS STANDARDS TO THIRD PARTIES WISHING TO REPRODUCE THEM IN THEIR OWN PRODUCTS AND SERVICES OR DISTRIBUTE THEM IN DIFFERENT JURISDICTIONS. LICENSING ACTIVITIES GENERALLY FALL INTO TWO MAIN AREAS: PERMISSION AND LICENCE AGREEMENTS.