As a result of the 2008 enhancement report Strengthening the European contribution to the international standard setting process, EFRAG was due to undertake a limited Governance Review in 2012. The focus was to assess whether the changes from the enhancement brought to EFRAG’s governance were well implemented, and to assess the effectiveness of the arrangements in securing cooperation between EFRAG and National Standard Setters in Europe. In addition, recent developments in the international financial reporting arena require further reflection in Europe on their implications for Europe and EFRAG’s objective and role. Finally the discussions held during the limited Governance Review have also shown an interest in and need for undertaking a more comprehensive review of EFRAG’s governance.

Considering all these aspects, the EFRAG Governance and Nominating Committee has decided to close the limited review without proposing changes to the current governance arrangements. A comprehensive review of EFRAG will be undertaken and take into consideration the most recent developments in the international financial reporting arena.

The process of the limited governance review has, however, identified in discussions with EFRAG’s stakeholders a number of desirable operational and due process improvements that can be implemented under the present governance and constitutional arrangements.
The EFRAG Governance and Nominating Committee conducts a review of the governance arrangements of EFRAG every five years unless circumstances require urgent action.