In November 2010, the IFRS Foundation issued a public consultation paper to seek advice from the stakeholder community in order to obtain input for its ongoing strategy review. EFRAG believes that strong coordination and cooperation between the IFRS Foundation Trustees and the Monitoring Board are essential for the overall governance of the Foundation.

Ensuring high-quality standards set in the public interest addresses the heart of the EFRAG working relationship with the IASB. The quality of the standard-setting process has a significant influence on the ultimate acceptability of the resulting standards in Europe and elsewhere.

In its letter, EFRAG provides a series of recommendations addressing: the interrelationship between standard-setting and public policy objectives; the independence of the standard-setting process, including observations on agenda setting; the need to define who users legitimately are; the convergence of external and internal financial reporting; the pace and conditions for changes to standards; the balance between complexity and understandability; the need for an evidence-based standard-setting process; and the need to remove the emphasis put so far on convergence.

EFRAG believes Trustees have an important role in communicating and explaining the overall strategy of the IASB, in particular in their respective regions, and need to build up a close relationship with the relevant stakeholder organisations - such as EFRAG - both at global and regional level.

Press release