European Financial Reporting Advisory Group

# European Financial Reporting Advisory Group (EFRAG) ## General Overview The **European Financial Reporting Advisory Group (EFRAG)** is a private association established in 2001 with the support of the European Commission. Its primary role is to serve the public interest by developing and promoting European views in the field of corporate reporting. ## Mission EFRAG's mission is to enhance the efficiency of European capital markets by ensuring that European views significantly influence the International Accounting Standards Board's (IASB) standard-setting process. Additionally, EFRAG provides advice to the European Commission on the endorsement of newly issued or amended IFRS Standards, assessing their alignment with EU policies. ## Structure EFRAG operates under two main pillars: 1. **Financial Reporting Pillar**: This pillar focuses on influencing the development of IFRS Standards from a European perspective and providing endorsement advice to the European Commission. 2. **Sustainability Reporting Pillar**: This pillar is dedicated to developing draft EU Sustainability Reporting Standards and supporting their effective implementation². ## Governance and Public Accountability EFRAG's governance structure ensures public accountability through its transparent due process, which includes public consultations on its positions and the transparency of its work. EFRAG holds public meetings and webcasts to maintain an open dialogue with stakeholders. ## Recent Developments In 2024, EFRAG launched a public consultation on the Draft XBRL Taxonomy for ESRS Set 1 and Article 8 disclosures. This initiative invites stakeholders to review and test the XBRL taxonomies and provide feedback through surveys open until 8 April 2024. ## Contributions to Corporate Reporting EFRAG seeks input from all stakeholders and gathers evidence about specific European circumstances throughout the standard-setting process. Its legitimacy is built on excellence, transparency, governance, due process, public accountability, and thought leadership, enabling it to be recognized as the European voice in corporate reporting.