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A project on developing a Disclosure Framework has commenced as part of the EFRAG’s pro-active work. The aim of the project is to make a significant contribution to improving the presentation and relevance of information in financial reports. The project is being led by EFRAG and supported by the UK ASB. As part of the arrangements for the project, a pan-European advisory panel is being set up to support the work, and EFRAG is now seeking nominations for membership of that panel.
There is some criticism of the financial disclosure requirements under IFRS. Analysts claim that disclosures are deficient in quantity, relevance and clarity; individual investors often complain that disclosures are so voluminous and incomprehensible that they ignore them; preparers express concern over the significant costs involved in satisfying such requirements.
This project aims to improve the relevance of disclosure and make them more effective, coordinated and less redundant. The output will be a discussion paper that is expected to be issued in 2011 to stimulate discussion and debate in Europe about the content and form of disclosures in the financial statements in order to influence a wider global debate. In the US, the Financial Accounting Standards Board (FASB) has initiated a disclosure project and EFRAG and FASB staff have agreed to exchange views and input to assist in a coordinated and efficient use of resources.
EFRAG has decided to set up a pan-European Advisory Panel (the Disclosure Framework Advisory Panel or DFAP) up to provide advice and other input to the work and to help ensure that the wider European perspective is reflected in the work.
· The intention is that the DFAP will have approximately 10 members.
· DFAP meetings will usually take place in Brussels, although some meetings might take place in other locations within Europe.
· The DFAP is expected to meet on a quarterly basis. In addition to face-to-face meetings, the DFAP will conduct some its business via email and conference calls to ensure members’ time is used efficiently.
· DFAP members are expected to bear their own travel and other costs in participating in the DFAP. Appointments to the DFAP are personal, and therefore not transferable.
· In order to ensure the widest possible participation whilst keeping face-to-face meetings manageable, the intention is to permit some members of the DFAP to be ‘correspondence members’. Correspondence members will receive all papers that other DFAP members receive, but are not expected to attend meetings. Instead, they will provide their input and other comments via email or the telephone.
Nominations for membership of the DFAP are invited from all backgrounds, including preparers, auditors, users and academics. As EFRAG is keen to ensure that the information needs of users are fully taken into account in the project, nominations from users of financial statements would be particularly welcome.
Nominations can be sent by the candidates themselves or by organisations on their behalf. If you wish to nominate someone or yourself, please write to EFRAG (Ms. Nathalie Saintmard, Secretariat, info@efrag.org) by 12 April 2010 including a CV and other relevant details.
If you require further information or have any questions about the project, please contact:
Mario Abela (EFRAG Research Director) mario.abela@efrag.org
Filippo Poli (Project manager) filippo.poli@efrag.org |
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