31 March 2001

FEE: Paper on the Establishment of the European Financial Reporting Advisory Group (EFRAG)

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This paper contains the joint proposals for EFRAG – European Financial Reporting Advisory Group, by the Commission referred to as Accounting Technical Committee or expert level of the endorsement mechanism. The proposals set out the function and tasks of EFRAG, its organisation and its relation to other bodies in the financial reporting area.

The joint proposals of the European Organisations for EFRAG envisage a two-tier level: a Technical Expert Group of highly-qualified technical experts drawn from national standard setters, the accountancy profession, preparers and users, limited in size and a Supervisory Board of European Organisations to guarantee representation of the full European interest and to enhance the legitimacy and credibility of EFRAG.

Highly qualified experts with proper knowledge of the European and international financial reporting scene will carry out the technical work in the Technical Expert Group with the help of a wide consultation process, including also a Consultative Forum of all European Standard Setters. Members of the Technical Expert Group should have experience in standard setting (now or in the past) and/or be in close contact with national standard setters and/or the IASC and/or have experience in applying IAS. Members of the Technical Expert Group should represent the European point of view rather than the individual organisation they come from. Members of the Technical Expert Group will be accountable to the Supervisory Board and should work in the European interest.

These joint proposals are fully supported by UNICE (Union des Confédérations de l'Industrie et des Employeurs d'Europe), FEE (Fédération des Experts Comptables Européens), EBF (European Banking Federation), ESBG (European Savings Banks Group), GEBC (European Association of Cooperative Banks), CEA (Comité Européen des Assurances), EFFAS (European Federation of Financial Analysts Societies), FESE (Federation of European Securities Exchanges), UEAPME (European Association of Craft, Small and Medium-sized Enterprises) and EFAA (European Federation of Accountants and Auditors for SMEs).

See full paper

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