European Financial Reporting Advisory Group (Efrag)

European Financial Reporting Advisory Group - was established in 2001 with the encouragement of the European Commission to provide input into the development of IFRS issued by the IASB and to provide the European Commission with technical expertise and advice on accounting matters. EFRAG is a private association established in conformity with Belgian law and whose members known collectively as “EFRAG Member Organisations” are European stakeholders and National organisations having knowledge and interest in the development of IFRS and how they contribute to the efficiency of capital markets. EFRAG’s role as advisor to the European Commission is formalised in a Working Arrangement which states that “EFRAG will provide advice to the European Commission on all issues relating to the application of IFRS in the EU. In close consultation with the European Commission, EFRAG will participate in the early phases of debate on all issues related to the standard-setting process”. As a result, EFRAG’s activities are aimed at ensuring that European views on the development of financial reporting standards are properly and clearly articulated in the international standard-setting process, so that ultimately IFRS can be endorsed in Europe to the satisfaction of all European stakeholders. Following the implementation of the “Maystadt” reform in 2014, EFRAG’s activities include assessments of whether the IFRS proposals/requirements are conducive to the European public good. This includes the interaction with economic concerns such as financial stability and growth. EFRAG is achieving its mission both through its participation in the IASB consultation process and its proactive work, and, under the leadership of the European Commission, its interaction with the Accounting Regulatory Committee, to hear about the potential economic or political concerns from Member States’ representatives. Upon request, EFRAG also provides the European Commission with technical expertise and advice on whether newly published IFRS meet the criteria for endorsement in the European Union, in conformity with the 1606-2002 “IAS Regulation”. EFRAG Member Organisations provide for the primary funding of EFRAG. Additional substantial funding is secured from the European Commission under yearly grant agreements. However, the EFRAG contents and publications are the sole responsibility of EFRAG and can under no circumstances be regarded as reflecting the views of the European Union.

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