1. International Financial Reporting Standards The views expressed in this presentation are those of the presenter, not necessarily those of the IASC Foundation or the IASB © 2008 IASC Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org 24 October 2015 © 2008 IASC Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org March 2009 DRAFT Defining Resource Requirements for a Global Standard-Setter

2. © 2008 IASC Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org 2 Contents Introduction Background Expenditure: –Current financial snapshot –Resources, infrastructure, outreach, travel and XBRL Contributions: –Risks and actions

3. © 2008 IASC Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org 3 5 Year Plan - Introduction Why a 5 Year Plan? The IASC Foundation’s objective is to establish IFRSs as the global standard for financial reporting. In 2007, the Trustees launched a strategy review to consider the requirements needed to meet that objective in the next 5 years. The 5 Year Plan is: –an assessment of those resources required to deliver on vision and commitment; –a framework for the organisation’s financing requirements.

4. © 2008 IASC Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org 4 5 Year Plan - Background Achieving the organisational objectives To develop and implement a single set of standards used worldwide through two major public interest work streams: –standard-setting and related activities; –XBRL. Activities financed by: –national and regional funding regimes / contributions; –Interest on deposits and reserve funds held in bonds; –publications and related activities.

5. © 2008 IASC Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org 5 5 Year Plan – Current financial snapshot £000’s Actual 2008 Budget 2009 IASB expenditure Total remuneration11,45214,081 Total infrastructure costs1,8211,975 Total stakeholder outreach costs409447 Total travel costs2,4602,776 Total expenditure16,14219,279 XBRL expenditure613669

6. © 2008 IASC Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org 6 5 Year Plan - Expenditure: Resources £000’s Actual 2008 Budget 2009 Plan 2010 Plan 2011 Plan 2012 Plan 2013 % of total expenditure 70.9%73.0%71.8%72.3% 72.4% Remuneration11,45214,08116,62716,81717,22217,636

7. © 2008 IASC Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org 7 5 Year Plan - Expenditure: Resources Building necessary staff resources Expansion of headcount is driven by two factors: –Technical Headcount is increasing to enable achievement of agreed work programme for next wave of IFRS adoption and to provide capacity to address urgent issues; –Operational Headcount is increasing to provide first class service to a growing organisation and enable effective risk management. Key assumptions for numbers The level of remuneration is set annually for all board members and staff, and is benchmarked externally. After 2009, we have assumed annual increases of 2.5%

8. © 2008 IASC Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org 8 5 Year Plan - Expenditure: Infrastructure Office costs largely fixed to 2018. Added variable arising from possible satellite locations to facilitate liaison in the Americas and Asia. Also need to upgrade technology (server upgrades, replacements, contact management) to communicate efficiently and broadly. £000’s Actual 2008 Budget 2009 Plan 2010 Plan 2011 Plan 2012 Plan 2013 % of total expenditure 11.3%10.2%12.2%11.4% 11.3% Infrastructure costs 1,8211,9752,8312,6632,7172,752

9. © 2008 IASC Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org 9 5 Year Plan – Expenditure: Outreach Developing extra capacity to enhance stakeholder outreach Increased assistance in stakeholder outreach in direct response to next wave of adoption beginning in 2011, and calls for improvements in stakeholder engagement (G20 and others). Other fees to support human resources, taxation and legal advice, and the annual audit. £000’s Actual 2008 Budget 2009 Plan 2010 Plan 2011 Plan 2012 Plan 2013 % of total expenditure 2.5%2.3%3.1%3.2% Stakeholder outreach and other fees 409447725743762781

10. © 2008 IASC Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org 10 Five Year Plan – Expenditure: Travel Running an international organisation entails significant travel – second largest expense item annually. Increases in travel reflect the increasing need to work collaboratively with diverse stakeholders. £000’s Actual 2008 Budget 2009 Plan 2010 Plan 2011 Plan 2012 Plan 2013 % of total expenditure 15.2%14.4%12.8%13.1% Travel2,4602,7762,9693,0433,1273,205

11. © 2008 IASC Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org 11 5 Year Plan – Expenditure: XBRL costs The IASC Foundation has been an active participant in XBRL technology since its inception. The IASC Foundation develops the official IFRS XBRL Taxonomy. Availability of an XBRL taxonomy is becoming an essential element of IFRS implementation. To date, the IASC Foundation XBRL efforts have been funded from general contributions. £000’s Actual 2008 Budget 2009 Plan 2010 Plan 2011 Plan 2012 Plan 2013 XBRL613669687664680697

12. © 2008 IASC Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org 12 5 Year Plan – Contributions Trustees expect financing from 3 primary sources: –funding regimes / contributions; –interest; –publications and related activities. Based upon current estimates funding to 2013 is projected as follows: £000’s Actual 2008 Budget 2009 Plan 2010Plan 2011Plan 2012Plan 2013 Contributions12,74717,562 Interest553441 Publications (net)3,9582,8182,8572,7572,8072,650

13. © 2008 IASC Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org 13 5 Year Plan – Contributions To achieve its objective, the IASC Foundation and the Monitoring Board must identify a way to close the emerging funding gap. Year Millions Expenditure against revenue

14. © 2008 IASC Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org 14 5 Year Plan – Contributions: Risks Large proportion of contributions are received in foreign currency; IASCF expenses are mainly incurred in Sterling. Currency exposure is hedged 2 years forward. Therefore currency risk exists on contributions from 2011-2013. Interest income is earned on retained earnings which are either held on deposit or invested in bonds. To the extent that these funds are required to fund expansion activity, income interest will diminish over time. It is also subject to interest rate fluctuations. Expenditure has been inflated at 2.5% per annum; this could change.

15. © 2008 IASC Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org 15 5 Year Plan – Contributions: Actions Contribution regimes need to adapt to: reflect inflationary increases; reflect the global responsibility in supporting IFRSs as a public good; allow capacity building to achieve global standard-setting objectives.