The two organisations are to provide support to encourage greater use of international financial reporting standards in the countries to improve their transparency, accountability and efficiency.
This in turn should make the countries more attractive as a destination for investment and boost their economic development.
Welcoming the move, chairman of the IFRS Foundation trustees Michel Prada said that he was pleased that the foundation would be working more closely with the Bank to establish “consistent financial reporting standards in emerging market and developing economies”.
“Reliable and transparent accounting practices are essential to attracting investment, and by extension, the way in which development institutions and the private sector can work together to support sustainable growth.”
Under the agreement, the foundation will provide its expertise in international standards to developing economies using the Bank’s extensive network and regional presence.
The two bodies will focus on the development of educational programmes to strengthen capacity and understanding of both IFRS and the IFRS for SMEs standard. These will be packaged in such a way that they can be used by development projects in individual countries or regions.
Work is currently underway on putting a coordination group together which will meet regularly and oversee implementation of the projects.