Role
The EFRAG Financial Reporting Board (EFRAG FRB) 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 ensuring Europe speaks with one voice.
Composition
The composition of the EFRAG FRB makes EFRAG the legitimate European voice in the development of IFRS Standards. The FRB is composed of members from the European Stakeholders Chapter (five members) 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 consultation with 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 who are not permanently represented on the EFRAG Financial Reporting Board.
Governance
Members of the FRB are expected to have a thorough understanding of how financial reporting requirements are likely to impact the constituency they represent. However, they make their decisions independently, ensuring that EFRAG works solely in the public interest and operates on the basis of consensus, to the extent feasible. They make a formal commitment to work in the public interest when taking office and are governed by EFRAG's conflict of interest policy.
The EFRAG FRB does not rely solely on its broad representativeness, but adopts well-informed positions. It makes all its decisions after considering the advice of the EFRAG Financial Reporting TEG and the results of EFRAG’s due process. It also listens to the Accounting Regulatory Committee and takes into account all assessments deemed relevant from a macroeconomic 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 FRB has the following official observers from the European Institutions with speaking rights:
- European Commission - Sven Gentner;
- European Central Bank(ECB) - Kallol Sen;
- European Banking Authority(EBA) - Delphine Reymondon;
- European Insurance and Occupational Pensions Authority(EIOPA) - Sandra Hack;
- European Securities and Markets Authority (ESMA) - Isabelle Grauer-Gaynor.
In addition, Jean Medernach, representing Better Finance, is currently the observer with speaking rights for European Organisations representing private investors.
The EFRAG Financial Reporting Board is supported in all its activities by the EFRAG secretariat.
Watch Joint Meetings with the SR Board
Membership of the EFRAG Financial Reporting Board
The current Members of the EFRAG Financial Reporting Board are (please click on the Members' names to view their profiles):
