Overall, the feedback suggests that those who interact closely with EFRAG see the organisation as being effective in its three core activities of upstream influence, improving IFRS and providing endorsement advice to the European Commission. Stakeholders identified a clear improvement over the past five years, but also suggested that that the organisation should seek to boost its visibility and join the wider debate on corporate reporting.

Specifically, a number of stakeholders expressed a wish for EFRAG to broaden the areas of its research to emerging issues beyond the narrow scope of financial reporting standards, including for example the impact of technological change and sustainable finance on reporting.

An area for improvement with regard to both influence and endorsement work could be to ensure stakeholders not directly involved in EFRAG’s work in these areas are aware of EFRAG’s achievements and how its work contributes to EFRAG’s overarching mission to improve financial reporting standards in the European public interest.

On the whole, stakeholders saw EFRAG as successful in influencing IFRS standards prior to their publication and felt the organisation is fulfilling its mandate to carry European views to the International Accounting Standards Board (IASB). Similarly, stakeholders view EFRAG’s endorsement advice on IFRS standards delivered to the European Commission to be on the whole technically sound and effective.

Jean-Paul Gauzès, EFRAG board president, said: ‘EFRAG’s mission is to serve the European public interest by developing and promoting European views in the field of financial reporting. Personally I am delighted to see that some stakeholders expressed an appetite for EFRAG to increase the scope of its work.

‘Financial reporting should not be seen in isolation. In our impact analysis work we already consider the broader impacts of financial reporting as part of the European public good assessment. I strongly believe EFRAG, together with our stakeholders, can contribute significantly to the wider reporting debate from a European perspective.’

EFRAG commissioned a perception audit last year, which asked 64 respondents from different parts of the stakeholder community in financial reporting for their views on how well the organisation is meeting its remit. Respondents included financial reporting standard-setters, accountancy firms and associations, and users of financial reporting standards.

The EFRAG perception audit is here.

Report by Pat Sweet