The IFRS Foundation was able to reduce the operating deficitto £1.3 million from the originally approved budget of £1.8 million. The total 2010 deficit, after fair value changes associated with the unwinding of hedging positions, is £2.0 million, reducing reserves from £9.7 million at end 2009 to £7.7 million at end 2010. Through the careful management of expenditures and focused effort on financing efforts in 2010, the IFRS Foundation is in a position to have a balanced budget in 2011.

 

IFRS Foundation strategy calls for moving as quickly as possible to funding that relies on public sponsorship or other intermediated mechanisms. Significant progress has been achieved in moving in this direction (particularly in Asia-Oceania, Europe and increasingly Africa and the Americas). In 2011, the United States is the only country where the IFRS Foundation seeks direct contributions by companies. Direct contributions from companies (8%) and international accounting firms (26%) are reduced to 34% percent of total revenues. This percentage will be reduced further with expected progress in the United States and other jurisdictions.

EU funding is provided in two components in 2011:
 

• EU grant: Beginning 2011 and through 2013, the IFRS Foundation will receive an annual payment of €4.25 million through the European Commission.
• National financing regimes: The EU grant is supplemented by national regimes, already in place, in 2011. The amount provided through national regimes is subject to change and reflects the transition to the EU-wide mechanism.

Efforts in Latin America are continuing, with a Brazilian regime established in 2011.

Asia-Oceania provides funding reflecting GDP, and new regimes are being established.

Nigeria and South Africa have new regimes in place.

Full presentation