Public consultation on EFRAG enhancement
Jul 23, 2008
The Supervisory Board of the European Financial Reporting Advisory Group (EFRAG) has invited public comment on a proposal for the enhancement of EFRAG.
- enhancing the EU's pro-active input to the IASB by building on EFRAG's structures and experience;
- further involvement of National Standard Setters and coordination of European resources and the creation of a Planning and Resource Committee
- enhanced governance, transparency of EFRAG and accountability to European organisations and institutions;
- balanced involvement of European stakeholders in EFRAG;
- a significant increase in EFRAG's human and financial resources.
The proposal envisions a new EFRAG structure as shown in the diagram below.
The structure would include:
- A new General Assembly (GA) with a Governance and Nominating Committee. The GA would consist of representatives of major European organisations. It would meet annually to approve the budget and appoint Supervisory Board (SB) members. The Governance and Nominating Committee would make recommendations on appointments to the SB.
- The Supervisory Board (17 members) would have responsibilities for oversight, financing, and some external liaisons (including IASCF, EC, and EP). It would also appoint members of the Technical Expert Group (TEG) and Planning and Resource Committee (PRC).
- The PRC would coordinate EFRAG's pro-active work with the IASB agenda and EFRAG technical surveys.
- There would be a new Consultative Group, similar to SAC, to advise TEG, PRC, and SB. It would meet annually.
- Regarding TEG, no major changes are proposed to the existing structure (9 to 12 voting members plus 3 non-voting members from major EU standard-setters).