EFRAG Due Process Procedures for Financial Reporting - 2024 Consultation

As a first step in the governance reform integrating the sustainability reporting pillar into the EFRAG structure, EFRAG developed its due process procedures for the sustainability reporting (SR DPP). The EFRAG Administrative Board supported by its Due Process Committee (DPC), covering both financial reporting and sustainability reporting, recognised that a thorough due process is applied for financial reporting but it is only formalised at a high level in the EFRAG Internal Rules. Accordingly, the DPC requested that also the due process procedures (DPP) for EFRAG’s financial reporting pillar be formalised.

Exposure Draft Due Process Procedures for Financial Reporting

In September 2024, EFRAG published its Exposure Draft Due Process Procedures for Financial Reporting for public consultation until 31 December 2024.

This document set out the due process requirements to be followed by EFRAG in its role as technical advisor to the European Commission, in its contribution to the IASB's standard-setting process by providing European views, including through proactive research activities, and providing technical advice to the European Commission on the endorsement of IFRS Accounting Standards. It details the requirements for the due process for the preparation of the documents as laid down in the EFRAG Statutes (Article 7.3.4 (b)) and EFRAG Internal Rules (Article 17).

The DPP should be read in the context of these EFRAG Statutes and EFRAG Internal Rules. EFRAG’s due process is based on interaction with and input from stakeholders. Accordingly, stakeholders’ acceptance of the DPP for EFRAG’s financial reporting pillar is essential. This is why this Exposure Draft on DPP for the EFRAG financial reporting pillar has been developed and issued for public consultation.

Due Process Procedures for the Financial Reporting Activities (DPP)

On 4 February 2026, EFRAG issued the Due Process Procedures for the Financial Reporting Activities (DPP), formalising the process it already applies to its work in financial reporting.

The DPP set out the steps EFRAG must follow in developing European perspectives for the IASB’s standard-setting process, undertaking proactive research, and providing technical advice on the endorsement of IFRS accounting standards.

The document therefore enhances transparency and provides clarity on the processes and procedures EFRAG follows in developing its technical positions.

The DPP were approved by the EFRAG General Assembly on 29 January 2026.

Correspondence with the EFRAG Administrative Board and/or its DPC on due process matters should be addressed to the following email address: EFRAGdueprocess@EFRAG.org