The Maltese Presidency and European Parliament representatives reached a provisional agreement on extending the EU's funding to the European Financial Reporting Advisory Group (EFRAG).
Nearly €14 million will be allocated for the period 2017 to 2020 to ensure the operational continuity of the EFRAG. The EU's contribution to EFRAG's budget accounts for around 60%.
Christian Cardona, Minister for the Economy, Investment and Small Business of Malta, said: "Adequate funding will allow the EFRAG to carry out its mission effectively. EFRAG is now well equipped to continue advising the European Commission on international financial reporting standards in the interest of the European project. Independence and transparency are essential for strengthening the single market of financial services and capital".
EFRAG's mission is to develop and promote European views in the field of financial reporting. It also tries to ensure that these views are duly taken into account within the International Accounting Standards Board, which is the independent body responsible for developing International Financial Reporting Standards (IFRS).
In 2009, the EU launched a programme to support activities in the field of financial services, financial reporting and auditing. The beneficiaries of the programme are the IFRS Foundation, the EFRAG and the Public Interest Oversight Board (PIOB).
The programme was extended under regulation 258/14 for the period 2014 to 2020 for the IFRS Foundation and the PIOB only.
Concerning EFRAG, the Council and the Parliament decided to wait until a number of reforms in the EFRAG governance were completed. The governance reform of EFRAG to strengthen the EU's contribution to the development of international accounting standards was implemented on 31 October 2014.
Today's provisional agreement has still to be confirmed by the Council and the European Parliament in the coming weeks. Once confirmed, the total allocation from the EU budget to EFRAG will amount to €23 million for the period 2014 to 2020, which matches the Commission initial estimate.