10 December 2008

EFRAG calls for enhanced role in standard-setting process

EFRAG issued its final report on the enhancement of its role in the international standard-setting process that will make Europe a more important player in the financial reporting world.

In July 2008 EFRAG issued its public consultation document “Strengthening the European Contribution to the International Standard-Setting Process”. EFRAG received 36 comment letters which are discussed in a feedback statement.

There was general support for the enhancement of EFRAG and the need to build on existing structures for articulating Europe’s requirements and representing European interests.

EFRAG concludes in its report to strengthen its role to provide “timely and effective proactive input in the early phase of the IASB process”. EFRAG, therefore, needs to place more emphasis on developing its own research and discussion papers at an early stage of the IASB’s consideration of the topics concerned, and also to monitor the ongoing IASB activities in order to give feedback to the IASB on a continuing basis, the Group states.

The main functions/activities of EFRAG should include:

Ø       Proactive work providing input to the IASB on topics on its work programme and related priorities and for example by the preparation of discussion papers;

Ø       Commenting on IASB/International Financial Reporting Interpretations Committee (IFRIC)/IASCF consultation papers (discussion papers and exposure drafts);

Ø       Impact assessments and effect studies on IASB standards and IFRIC interpretations at the request of the EC;

Ø       Endorsement advice to the EC.

Press release

Final proposals

Feedback statement

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