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EFRAG in 100 seconds
back to topGeneral presentation
||EFRAG – European Financial Reporting Advisory Group – is a private association established in 2001 with the encouragement of the European Commission to serve the public interest. Its Member Organisations are European stakeholders and National Organisations having knowledge and interest in the development of IFRS Standards and how they contribute to the efficiency of capital markets.|
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back to top Mission statement
EFRAG’s mission is to serve the European public interest by developing and promoting European views in the field of financial reporting and ensuring these views are properly considered in the IASB standard-setting process and in related international debates. EFRAG ultimately provides advice to the European Commission on whether newly issued or revised IFRS Standards meet the criteria in the IAS Regulation for endorsement for use in the EU, including whether endorsement would be conducive to the European public good.
EFRAG seeks input from all relevant stakeholders, and obtains evidence about specific European circumstances, throughout the standard-setting process and in providing our endorsement advice. Our legitimacy is built on transparency, governance, due process (which may include field tests, impact analyses and outreaches), public accountability and thought leadership. This enables EFRAG to speak convincingly, clearly and consistently, and be recognised as the European Voice in financial reporting.
EFRAG is operating in a fast evolving environment and cares about adapting its activities and its governance to meet the opportunities and challenges in corporate reporting.
back to topEFRAG Structure
All governance details are explained in the governance dedicated section and EFRAG's bylaws are available in the "Legal section".
back to topPublic accountability
Public accountability is ensured on the one hand by EFRAG's governance and on the other by EFRAG's due process. EFRAG is accountable to the public at large and the European institutions through its open and transparent due process; including public consultation on its positions; transparency of EFRAG's work; public meetings of the EFRAG Technical Expert Group and of the EFRAG Board, EFRAG Board public agenda papers and open nomination processes. EFRAG publishes every year an Annual Review discussing its activities and presenting financials of the past year. The funding by the European Commission brings enhanced scrutiny of EFRAG's activities and expenses, including the publication of audited annual accounts and detailed activity reports to the European Commission.
back to topFunding of EFRAG
EFRAG's funding originates from both the public sector (the European Union) and the private sector (EFRAG's Member Organisations). Funding by the European Commission is granted through yearly grant agreements. Funding by the Member Organisations includes both contributions in cash (provided to EFRAG in accordance with EFRAG's bylaws) and in kind (membership of various groups – EFRAG Board, EFRAG TEG, European Lab Steering Group, and their working groups, advisory panels, and project task forces – free of charge). The EFRAG Board President, EFRAG TEG Chair and CEO are employees of EFRAG and compensated for their contributions to the organisation.
The contents of EFRAG’s work and the positions taken are the sole responsibility of EFRAG and can under no circumstances be regarded as reflecting the position of the European Union.
back to topBuilding strong influence beyond the borders of Europe
EFRAG is a member of the European delegation to the IASB Accounting Standards Advisory Forum (ASAF), a member of the International Forum of Accounting Standard Setters (IFASS) and has bilateral relationships with regional or national groups interested and involved in IFRS development. EFRAG also participates in the World Standard Setters meeting. The EFRAG Board President is a member of the IFRS Advisory Council. Whilst EFRAG's draft comment letters are published as a basis for EFRAG's due process in Europe, it is widely acknowledged that they attract interest way beyond Europe.
Furthermore, EFRAG enjoys a constructive relationship with the IASB in many ways: EFRAG welcomes IASB members and staff as observers to the EFRAG Technical Expert Group's and Working Group meetings; EFRAG staff cooperates with the IASB staff on a frequent basis; the IASB participates in outreach events and field-testing organised by EFRAG in partnership with National Standard Setters in Europe; and EFRAG and IASB Chairs meet privately on a regular basis.