The aim of the project - led by EFRAG and supported by the UK ASB - is to improve the presentation and relevance of information in financial reports. To support the project, a pan-European advisory panel is being set up.
A new pro-active project on Disclosure Framework has started and a pan-European Advisory Panel is being established to provide support. EFRAG is launching a public call for nominations to the Advisory Panel.
A project on developing a Disclosure Framework has commenced as part of the EFRAG’s pro-active work. The aim of the project is to make a significant contribution to improving the presentation and relevance of information in financial reports. The project is being led by EFRAG and supported by the UK ASB. As part of the arrangements for the project, a supporting pan-European advisory panel is being set up. EFRAG is seeking nominations for membership of that panel.
There is some criticism of the financial disclosure requirements under IFRS. Analysts claim that disclosures are deficient in quantity, relevance and clarity; individual investors often complain that disclosures are so voluminous and incomprehensible that they ignore them; preparers express concern over the significant costs involved in satisfying such requirements.
This project aims to improve the relevance of disclosure and make it more effective and coordinated and less redundant. The output will be a discussion paper scheduled for 2011 to stimulate discussion and debate in Europe about the content and form of disclosures in the financial statements in order to influence a wider global debate. In the US, the Financial Accounting Standards Board (FASB) has initiated a disclosure project and EFRAG and FASB staff have agreed to exchange views and input to assist in a coordinated and efficient use of resources.
EFRAG has decided to set up a pan-European Advisory Panel (the Disclosure Framework Advisory Panel or DFAP) to provide advice and other input, and to help ensure that the wider European perspective is reflected.
© EFRAG - European Financial Reporting Advisory Group
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