Total operating expenses decreased slightly to £24.2m from £24.5m. As of 31 December 2016 the IFRS Foundation’s net assets increased to £22.8m, in line with the trustees’ strategic decision to accumulate reserves greater than one year of operating expenditure.

In 2016, contributions amounted to £24m, an increase of £2.8m from 2015. The Foundation says the year-on-year increase in contributions resulted primarily from favourable exchange rates for euros and US dollars compared with the pound.

The annual report notes that the trustees are continuing to work towards a global funding system which would include funding allocated proportionally, based primarily on GDP, long-term commitment by jurisdictions, and public sponsorship, through either direct or implicit governmental or regulatory support.

Currently the UK, via the Financial Reporting Council levy system, contributes £861,876, while the EU’s contribution is over £3.8m and China’s tops £2m.

The annual report provides an overview of the IFRS Foundation’s activities during the year, which included the trustees’ review of structure and effectiveness and its Better Communication initiative.

It addresses in particular the large projects that are set for completion—the insurance contracts Standard and the revised Conceptual Framework; the increased focus on supporting the implementation and application of IFRS Standards; and plans for increased transparency through making public the meetings of the due process oversight committee.

The annual report also notes that during 2017, the main operational challenge for the IFRS Foundation will be the location of its office, as the lease on its London headquarters will expire in 2018. The Foundation says it has begun to consider options—with a preference to remain in London for at least the next five years.

As regards future plans, the annual report states: ‘In 2017 the IFRS Foundation will continue to manage its operating expenditure prudently and effectively and will actively pursue further initiatives to enhance the organisation’s income. The 2017 plan does not envisage significant increases in the organisation’s operating requirements.’

Amongst other changes in response to its consulatioin on its structure and effectiveness, the Foundation is to reduce the size of the board from 16 to 14 members, and combine North and South America into a single ‘Americas’ category.

The report notes: ‘With regard to funding, the trustees received broad support to continue with the current funding arrangements for the foreseeable future. Our funding is stable, but we continue to work towards the delivery of fair and equitable financial support across all jurisdictions that benefit from our Standards.’

The IFRS Foundation annual report 2016 is here.