Role of the EFRAG Financial Reporting Board
The EFRAG Financial Reporting Board is responsible for all decisions made and positions taken at EFRAG. It makes its decisions to the extent possible on the basis of consensus with the objective of Europe speaking with one voice.
Composition of the EFRAG Financial Reporting Board
The composition of the EFRAG Financial Reporting Board makes EFRAG the legitimate European voice in the development of IFRS Standards. The EFRAG Financial Reporting Board is composed by members belonging to the European Stakeholders Chapter (five) and the National Organisations Chapter (National Standards Setters) (up to 10 members) and is led by its Chair, who is nominated by the European Commission after having heard the European Parliament and the Council. The European Commission, the European Supervisory Authorities and the European Central Bank (ECB) participate in the EFRAG Financial Reporting Board in an observer capacity.
There are up to six seats for National Standard Setters that are not
permanently represented on the EFRAG Financial Reporting Board.
How the EFRAG Financial Reporting Board operates
EFRAG Financial Reporting Board members are expected to have a thorough understanding of how financial reporting requirements are likely to impact the constituency they represent. They make however their decisions independently so as to have EFRAG work solely in the public interest and operate on the basis of consensus to the extent feasible. They make a formal commitment of working in the public interest when coming into office and are governed by EFRAG's conflict of interest policy.
The EFRAG Financial Reporting Board does not rely solely on its broad representativeness, it adopts well-informed positions. The EFRAG Financial Reporting Board is taking all its decisions after having considered the advice of the EFRAG Financial Reporting TEG and the results of EFRAG’s due process. It also hears from the Accounting Regulatory Committee and makes all assessments deemed relevant from a macro-economic perspective. It can seek further advice on issues in relation to the European public good by forming its own working groups. To date none has been formed.
The EFRAG Financial Reporting Board has the following official observers of the European Institutions with speaking rights: European Commission - Sven Gentner; ECB (European Central Bank) - Kallol Sen; EBA (European Banking Authority) - Delphine Reymondon; EIOPA (European Insurance and Occupational Pensions Authority) - Sandra Hack; and ESMA (European Securities and Markets Authority) - Isabelle Grauer-Gaynor. In addition, Jean Medernach, representing Better Finance, is at present the observer with speaking rights for European Organisations representing private investor.
The EFRAG Financial Reporting Board is supported in all its activities by the EFRAG secretariat.
Membership of the EFRAG Financial Reporting Board
The current Members of the EFRAG Financial Reporting Board are (please click on Members' names to view their profiles):
