European Financial Reporting Advisory Group

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The European Financial Reporting Advisory Group AISBL (EFRAG) is a not-for-profit association founded in 2001 under Belgian law with headquarters in Brussels. The primary goal of the association is to support the European Commission (EU Commission) in the process of adopting the International Financial Reporting Standards (IFRS), English: Endorsement Process. According to EU Regulation No. 1606/2002, all capital market-oriented companies in the European Union are obliged to prepare their consolidated financial statements in accordance with the IFRS, which has been adopted by the EU Commission. The regulation provides that the Commission should be advised by a body. By contract, the Commission has agreed with EFRAG that EFRAG will play the role of this body. In addition to EFRAG, the Accounting Regulatory Committee (ARC) advises the Commission on questions of international accounting. EFRAG has official observer status with the ARC.

organization

EFRAG is funded by its members and the European Union. People involved in the various EFRAG bodies such as the EFRAG Board, the EFRAG Technical Expert Group (TEG) and their working groups and advisory committees make their working hours available on a voluntary basis. Member organizations are responsible for the management of the organization.

EFRAG's 17 members support the charitable mission of the association and contribute to its implementation:

European umbrella organizations :

National member organizations :

  • Autorité des Normes Comptables (ANC), France;
  • German Accounting Standards Committee (DRSC), Germany;
  • Instituto de Contabilidad y Auditoria de Cuentas (ICAS), Spain;
  • Organismo Italiano di Contabilità (OIC), Italy;
  • Commission des Normes Comptables (CNC), Luxembourg;
  • Raad voor de Jaarverslaggeving (RJ), The Netherlands;
  • Föreningen för god sed på värdepappersmarknaden, Sweden; and
  • Financial Reporting Council (FRC), UK.

The organs of the association are:

  • the general assembly that elects the supervisory board;
  • the Board of Directors ("EFRAG General Assembly"), which appoints, monitors and dismisses the Board of Directors; and
  • the Board of Directors ("CEO") (since 2016 Andrew Watchman).

The bodies of the association are:

  • the EFRAG Board, which is appointed and overseen by the Board of Directors; and
  • the EFRAG Technical Expert Group (TEG), which essentially carries out the technical activities of the association.

financing

The association's activities are financed by its members and the European Commission. Thus funding comes from both the public and private sectors.

Funding from the EU Commission is approved through annual grant agreements . Funding by the member states takes the form of financial contributions and contributions in kind such as free, active membership in various bodies such as EFRAG Boards, EFRAG TEG and their working groups and advisory committees. Both the Chairman of the EFRAG Board and the Chairman of EFRAG TEG and CEO are EFRAG employees who are rewarded for their contribution to the organization.

Web links

Individual evidence

  1. ↑ EFRAG: INTRODUCING EFRAG. Accessed March 14, 2018 (English).
  2. ↑ EFRAG: EFRAG Annual Review 2016. Accessed on March 14, 2018 (English).