EFRAG and the European National Standard Setters (NSS) have agreed to pool some of their resources and work together more closely so that Europe as a whole can participate more effectively in the global accounting debate. It was agreed that this initiative should, in the beginning, concentrate on long-term, pro-active activities. The objective of the initiative is to stimulate debate on important items on the IASB agenda at an early stage in the standard-setting process before the IASB formally issues its proposals. The initiative has the joint ambitions of representing a European point of view and exercising greater influence on the standard-setting process.
Pro-active activities can take a number of different forms and the full objectives of the initiative are:
- to stimulate, carry out and manage pro-active development activities designed to encourage the debate in Europe on accounting matters and to enhance the quality of the pro-active input to the IASB;
- to co-ordinate and resource monitoring work of IASB and FASB projects; and
- to try to ensure, as far as is practicable, that the messages Europe gives the IASB are consistent.
Proactive projects are discussed and agreed by the EFRAG Planning & Resources Committee (EFRAG PRC). The PRC endorsed the strategic aims of EFRAG's proactive work and the process by which it undertakes these activities. More information on this can be found in the linked document Proactive work: Strategy - Focus on improvement
The list of proactive projects can be viewed here.
All the projects comprise staff from the standard setters involved and may be supported by national and international advisory groups. EFRAG is represented on all the international advisory groups and also provides staff support.
The progress of the projects is monitored by the EFRAG PRC, which meets regularly to coordinate and manage the work. EFRAG also receives reports from all meetings and debates the key issues arising, on a timely basis.
It was also agreed that the pro-active activities work should involve a collaborative approach in relation to meetings with the IASB on the IASB/FASB convergence programme. Therefore, EFRAG has asked the chairpersons of some of those NSS that have the resources necessary to provide robust and technical high-quality input to the IASB. However, all European standard setters and others will be able to provide input. This European input will, as far as possible, be based on consultation.