06 March 2024

The IFRS Foundation Monitoring Board reaffirmed the importance of ongoing oversight of the standard-setting activities and governance of the

The Monitoring Board recognized significant efforts made by the IFRS Foundation to support the implementation of the ISSB Standards, including the publication of the Preview of the Inaugural Adoption Guide in February 2024.

During last week’s meeting of the IFRS Foundation Monitoring Board in Madrid, Spain, the Monitoring Board discussed the activities of the Trustees of the IFRS Foundation, including their oversight responsibilities of the International Accounting Standards Board (IASB) and the International Sustainability Standards Board (ISSB). The meeting was joined by the members of the Trustees of the IFRS Foundation under the leadership of Erkki Liikanen, Chair of the Trustees, and also Andreas Barckow, Chair of the IASB, and Emmanuel Faber, Chair of the ISSB.
The Monitoring Board was informed of the ongoing activities of the IFRS Foundation under the new ‘Two Standard Setting Boards (SSBs) under One Foundation’ model. In response, the Monitoring Board continued to convey its expectations on:
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connectivity between the financial statements and sustainability-related disclosures, while ensuring mutual independence and balanced resource allocation for their standard setting process. In this context, the Monitoring Board welcomed the progress made by the IFRS Foundation, including the first joint meeting of the IASB and ISSB in January 2024;
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further exploration of effective functioning of the multi-location model1 to maximize the potentials of the two SSBs under the leadership of the Trustees of the IFRS Foundation.
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stable and diversified funding to support the work of the two SSBs.
As for the activities of each SSB, the Monitoring Board reiterated the equal importance of the work of both the IASB and ISSB.
The Monitoring Board recognized significant efforts made by the IFRS Foundation to support the implementation of the ISSB Standards, including the publication of the Preview of the Inaugural Adoption Guide in February 2024. The Monitoring Board members unanimously called for the IFRS Foundation to continue the constructive and close discussions with the regulators to continue progress toward the shared goal of the global framework for sustainability-related financial information by having jurisdictions adopt, apply or be informed by the ISSB standards.
The Monitoring Board also appreciated that the strategic directions of both the IASB and ISSB are under consideration: the IASB is reviewing its strategy for the next decade, while the ISSB is discussing the next priorities following a Request for Information which was issued to stakeholders. The Monitoring Board will continue to engage with the Trustees on these matters.

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