European Financial Reporting Advisory Group (EFRAG)
The European Financial Reporting Advisory Group (EFRAG) was established in June 2001 by a broad group of organisations representing the European accounting profession, preparers, users, and national standard-setters with the following original goals:
- to provide technical expertise to the European Commission concerning the use of IAS within Europe
- to participate in IASB's standard setting process
- to coordinate within the EU the development of views concerning international accounting standards.
EFRAG became operative in September 2001, was restructured in 2008, and restructured again into its current form in October 2014.
Current structure of EFRAG
In June 2014, the EFRAG General Assembly approved the new EFRAG Statutes and EFRAG Internal Rules with an effective date of 31 October, and established a temporary Nominating Committee to select and recommend candidates for a new EFRAG Board. On 31 October 2014, further procedural steps occurred, bringing the current EFRAG structure into effect.
In accordance with the revised EFRAG Internal Rules, a new EFRAG Board was created and is responsible for:
- all technical positions of EFRAG, after having considered the technical advice provided by EFRAG Technical Experts Group (EFRAG TEG), and reflecting the results of EFRAG's due process
- ensuring EFRAG has an open and transparent due process including a public consultation process with European constituents on draft EFRAG positions on items such as discussion papers, draft comment letters, draft consultation documents and draft endorsement advices.
The EFRAG Board has 16 members in total: eight members each from European stakeholder organisations and national standard setters.
The EFRAG Technical Experts Group (EFRAG TEG) provides technical advice to the EFRAG Board.
EFRAG TEG provides its own professional judgement, arguments and technical analysis based on its technical expertise and on EFRAG's due process. EFRAG TEG's advice then forms part of the EFRAG Board agenda papers for the Board's finalisation and approval.
EFRAG TEG also provides input for the EFRAG research activities in the financial reporting arena in active projects launched by the EFRAG Board. It is expected that EFRAG TEG will deliver sound technical judgements supported by reasoned opinions without regard to the particular interests of member or nominating organisations.
EFRAG TEG is expected to have at least ten physical meetings every year lasting for an average of three days.
EFRAG Consutlative Forum of Standard Setters (EFRAG CFSS)
EFRAG meets quarterly with a consultative forum of European national standard setters to discuss current European financial reporting issues, major proposals in relation to International Financial Reporting Standards (IFRSs) and the EFRAG's own pro-active work. These meetings are designed to ensure that EFRAG represents the European view on these issues, including providing input into the Accounting Standards Advisory Forum (ASAF).