23 Oct Week 5 Video Discussion Post 2nd Response:

Week 5 Video Discussion Post 2nd Response:

Instructions: Respond to the post below from your fellow classmate. Any opinions, or anything you would like to add to discuss about their post. Must be three substantial paragraphs, and three references.

The video I chose today was the EFRAG’s corporate video explaining what they do and how they provide guidance. Initially I chose this video because I had never heard of this organization and wanted to learn about them myself. The EFRAG stands for the European Financial Reporting Advisory Group. The EFRAG’s website states, “EFRAG’s mission is to serve the European public interest by developing and promoting European views in the field of financial reporting and ensuring these views are properly considered in the IASB standard-setting process and in related international debates.” (iasplus.com 2020) The video begins by saying that the EFRAG’s main job is to make sure the IFRS follows the needs of Europeans.

            The EFRAG provides a lot of aide to europeans by making sure their issues are heard in regards to their financial reporting. In the video we learned that the EFRAG provides 3 main types of help, improving the IFRS, upstreaming influence and endorsement advice. Endorsement advice is completed by the EFRAG giving their opinion on any changes that may need to be given to the IFRS regarding new standards or any updates to standards. On their webpage regarding the endorsement reports they state, “The report provides an overview of IFRS Standards and IFRS interpretations pending endorsement. This overview is updated upon an IFRS Standard or IFRS Interpretation being issued by the IASB, EFRAG issuing its draft and final endorsement advice, and the ARC voting in favor of endorsement.” (EFRAG.org 2020) By going through the process of analyzing the standard prior to endorsing the standard for the IFRS, EFRAG is improving the IFRS. They are making sure that the IFRS is truly helping European standards for reporting. 

            The EFRAG researches every standard regarding reporting that the IFRS tries to implement. In order for the standard to be implemented it must be endorsed by the EFRAG. On their website EFRAG states, “EFRAG meets quarterly with a consultative forum of European national standard setters to discuss current European financial reporting issues, major proposals in relation to International Financial Reporting Standards (IFRSs) and the EFRAG’s own pro-active work.” (Iasplus.org 2020) These quarterly meetings allow the EFRAG to implement the procedures of its people. In doing this they are using their position to provide upstreaming influence. The future reporting standards of the IFRS are determined by the approval and analysis that is provided by the EFRAG.

Deloitte (2020) Retrieved from https://www.iasplus.com/en/resources/regional/efrag

EFRAG Corporate Video (2020) Retrieved from https://www.youtube.com/watch?v=s6KvkhnuMD0

EFRAG (2020) Retrieved from https://www.efrag.org/Endorsement