In December 2008, EFRAG issued its report, Strengthening the European Contribution to the International Standard-setting Process. The enhanced structure of EFRAG described in the report is designed to represent effectively all European stakeholders in IFRS. Key features of the enhanced structure include a substantial increase in the resources of the EFRAG Secretariat, closer collaboration with the European National Standard Setters (NSS) that are committed to contributing significant resources and expertise to proactive projects, and increased funding contributions from national funding mechanisms, with public funding matching the funding provided by the member body organisations and the national funding mechanisms. From 2010, EFRAG is funded by the European Commission.
Within the enhanced structure of EFRAG, the EFRAG Supervisory Board (EFRAG SB), drawn from an appropriate balance of professional backgrounds, including users, preparers and accountants. However, the EFRAG SB no longer comprises of representatives of the member organisations. Four members of the EFRAG SB have a background with experience in public policy, either at national or European level.
EFRAG SB members are required to commit themselves formally to acting in the European public interest, independent of their professional or sector affiliation. In the interests of transparency, EFRAG SB meetings are open to the public. The European Commission and ESMA act as official observers.
The current EFRAG SB has appointed a Planning and Resource Committee (EFRAG PRC) to set the agenda for EFRAG's proactive work, resulting in the issuance of discussion papers and other outputs. The EFRAG PRC provides guidance on the allocation of available resources to proactive projects and monitors the progress of the work concerned. The objective of the proactive work is to influence the IASB, to create discussions and a better understanding of financial reporting issues in Europe.
A list of the EFRAG PRC can be found here. Representatives of the European Commission act as observers of the EFRAG PRC.
The work of the EFRAG PRC is supported by an informal reference group that acts as a sounding board to advise on potential proactive projects. The members consist of National Standard Setters that are prepared to provide resources and other input to the proactive work of EFRAG.