The IFRS Foundation has announced a new cooperation agreement with the World Bank to provide greater support to developing economies in their use of IFRS® Standards. The agreement reflects the organisations’ view that the transparency, accountability and efficiency provided by adoption of IFRS Standards plays an essential role in attracting inward investment, boosting economic development and ultimately alleviating poverty.
A statement of Michel Prada, Chairman of the IFRS Foundation Trustees, emphasises the most significant objective of this initiative:
In recent years, we have seen a large number of developing economies adopt IFRS Standards. However, many of these countries need an additional support when adopting IFRS Standards or implementing major changes to those standards. Deepening cooperation with the World Bank is an obvious way to achieve this goal, and we are grateful to the World Bank for its active support and fully committed to make this joint endeavour a success.
As stated in the rationale, the directions of cooperation cover:
- Promoting IFRS Standards and the IFRS for SME Standard as international benchmarks
- Capacity Development for Implementation of IFRS Standards
- Enhancing Engagement in Standards Development
To view the Press release and Memorandum of understanding please access the IFRS Foundation webpage.