EFRAG financial reporting due process procedures

Accountancy Europe welcomes EFRAG’s work to document the Due Process Procedures (DPP) and the opportunity to provide comments through this public consultation.

Thorough and transparent DPP will not only foster trust in the decision-making process but also ensure long-term viability for the organisation as a public-private partnership.

EFRAG provided robust technical advice to the European Commission and influenced the development of International Financial Reporting Standards through its leadership, in-depth analysis and thought-provoking research.

The quality, credibility and adoption/influence of this work depends on:

• Being inclusive and neutral keeping all stakeholders, auditors, preparers, investors, regulators, and policymakers at arm’s length. In this respect, EFRAG should closely monitor its decision-making process to continuously ensure its independence is maintained at all times.
• An appropriate mix of skilled staff. We recently became concerned by the lack of resources in the financial reporting pillar and the tensions it creates within EFRAG.

We finally invite EFRAG to foresee post-implementation review processes to ensure their DPP (financial and sustainability pillars) are effective and operating as designed on an ongoing basis.

Read the full consultation in the “Download” section.