Update on Funding for 2008
04 February 2008
The IASC Foundation set four principles for a funding system in 2008 and beyond. These four principles are:
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Broad-based: A sustainable long-term financing system must expand the base of support to include major participants in the world’s capital markets, including official institutions, in order to ensure diversification of sources.
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Compelling: A system must carry with it enough pressure to make free riding very difficult. This could be accomplished through a variety of means, including official support from the relevant regulatory authorities and formal approval by the collecting organisations.
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Open-ended: The financial commitments should be open-ended and not contingent on any particular action that would infringe on the independence of the IASC Foundation and the International Accounting Standards Board. This should include sustained support from official international organisations, central banks and the major accounting firms.
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Country-specific: The funding burden should be shared by the major economies of the world on a proportionate basis, using Gross Domestic Product as the key determining factor of measurement. Each country should meet its designated target in a manner consistent with the principles above. Trustees should be assigned to specific countries to assist in the development of the funding scheme.
Beginning in 2008, the Trustees have succeeded in establishing national funding regimes consistent with the principles above in a number of countries. Based upon existing commitments, the Trustees estimate that nearly £12.5 million of the £16 million has been raised. The expanding funding regime now includes the participation of thousands of market participants.
Efforts are continuing in a number of countries throughout the world. The table below shows a summary of expected commitments, as of 4 February 2008:
Country/Type of contributor
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System in place
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Anticipated amount for 2008*
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Europe
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Germany
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Voluntary system of more than 80 private companies with maximum contribution of EUR 36,000
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EUR 1,320,000
|
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United Kingdom
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Levy on companies through the UK Financial Reporting Council
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£700,000
|
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France
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Voluntary system of more than 80 companies with no company paying more than EUR 25,000
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A target of EUR 1,000,000 with EUR 600,000 committed in 2007
|
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Italy
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Levy on registered companies
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EUR 750,000
|
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Netherlands
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Levy through the securities regulator proposed
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EUR 380,000
|
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Sweden
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Funding through Föreningen för god sed på värdepappersmarknaden
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EUR 300,000
|
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Switzerland
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Funding primarily collected through Swiss business associations
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EUR 250,000
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Luxembourg
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Funding through the Bourse of Luxembourg
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EUR 50,000
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Funding efforts are proceeding in other European Union Member States. Details of commitments will be posted when confirmed.
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Americas
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United States
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Voluntary system of 32 companies with range of contribution from $3,750-$200,000
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US$ 3,500,000
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Mexico
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Voluntary system of contributions
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US$ 50,000
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Brazil
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Voluntary system of contributions
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US$ 15,000
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Funding efforts are proceeding in Canada, and discussions are occurring with the Accounting Standards Oversight Council of the Canadian Accounting Standards Board.
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Asia-Oceania
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Japan
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Voluntary system co‑ordinated centrally, involving a range of Japanese market participants
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US$ 2,800,000
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China, excluding Hong Kong SAR
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Voluntary contributions of Chinese listed companies through the China Accounting Standards Committee
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US$ 900,000
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Australia
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Annual payment on behalf of private and public sector stakeholders in the Australia accounting standard-setters process
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A$ 1,000,000
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Korea
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Voluntary contributions of Korean listed companies through the Korea Accounting Standards Board
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A target of US$ 500,000 with US$ 300,000 committed in 2007
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India
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Voluntary contributions of leading companies
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US$ 337,500
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Hong Kong SAR, China
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Contribution through regulatory authorities and stock exchange
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US$ 195,000
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New Zealand
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Annual payment through the Accounting Standards Review Board
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NZ$ 200,000
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Funding efforts are proceeding in other countries in the Asia-Oceania region.
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Central Banks and International Organisations
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Central banks and international organisations
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Voluntary payments
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US$ 400,000 (efforts ongoing)
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International Accounting Firms
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Deloitte, Ernst &Young, KPMG, and PricewaterhouseCoopers
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Voluntary payments
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US$ 2,000,000 each
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BDO and Grant Thornton
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Voluntary payments
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US$ 150,000 each
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Mazars
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Voluntary payment
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US$ 100,000
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* Subject to change due to ongoing efforts and based upon best estimates)
The IASC Foundation will provide periodic updates on its funding for 2008.
The 2007 Annual Report will also include a list of funders by country and levels of contribution.