Budget Crunch Hits Global Corporate Disclosure Standard-Setter

The body that sets global financial accounting and sustainability reporting rules risks more severe cutbacks and growing corporate influence if it can’t secure long-term funding.

Academics have warned the IFRS Foundation needs consistent funding to survive, following recent comments by the organization’s managing director who detailed a precarious financial situation.

The foundation runs both the International Accounting Standards Board, which sets rules used by more than 140 countries worldwide, and the International Sustainability Standards Board, which launched in late 2021 and now has close to 40 countries considering making its corporate disclosure guidelines mandatory.

Michel Madelain, the foundation’s managing director, ...