European Financial Reporting Advisory Group (EFRAG)

ESG
:   
Frameworks and Standards
July 5, 2024

EFRAG is an independent, non-profit organization that was established in 2001 by the European Commission, the European Parliament, and the European Council. Its main objective is to provide advice and support to the European Union (EU) on financial reporting and accounting matters.

Mission and Objectives

EFRAG's mission is to promote high-quality financial reporting and accounting standards in the EU, and to ensure that financial reporting is transparent, consistent, and comparable across the EU. To achieve this, EFRAG has several objectives, including:

  1. Providing advice to the European Commission on financial reporting and accounting matters.
  2. Developing and maintaining a set of European Financial Reporting Standards (EFRS) that are consistent with international financial reporting standards (IFRS).
  3. Providing guidance and support to companies, investors, and other stakeholders on financial reporting and accounting matters.
  4. Promoting the adoption of IFRS in the EU and ensuring that EU financial reporting standards are consistent with IFRS.

Key Activities

EFRAG's key activities include:

  1. Developing and maintaining EFRS, which are used by companies listed on EU stock exchanges and other financial institutions.
  2. Providing advice to the European Commission on financial reporting and accounting matters, including the development of new financial reporting standards and the review of existing standards.
  3. Conducting research and analysis on financial reporting and accounting issues, and publishing reports and guidance documents on these topics.
  4. Providing training and education on financial reporting and accounting matters to companies, investors, and other stakeholders.
  5. Collaborating with other international organizations, such as the International Accounting Standards Board (IASB), to promote the adoption of IFRS in the EU.

Membership

EFRAG has a diverse membership that includes:

  1. Companies listed on EU stock exchanges.
  2. Financial institutions, such as banks and insurance companies.
  3. Accounting firms and other professional services firms.
  4. Investor organizations and other stakeholders.
  5. National accounting bodies and other organizations with an interest in financial reporting and accounting.

Impact

EFRAG's work has a significant impact on financial reporting and accounting in the EU. Its advice and guidance help to ensure that financial reporting is transparent, consistent, and comparable across the EU, which in turn helps to promote investor confidence and stability in the financial markets.

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EFRAG

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