EFRAG tasked with proposing Non-financial Reporting Standards
The European Commission (EC) continued making headway on non-financial reporting this week with an announcement that the European Financial Reporting Advisory Group (EFRAG) is to develop recommendations for non-financial reporting standards.
Although the decision to mandate standards lies with the European Council, beginning technical preparatory work now will allow for swift implementation once policy decisions have been made.
As set out earlier this year, the European Commission is taking an in-depth look at non-financial reporting, including reviewing the Non-Financial Reporting Directive (NFRD). Establishing a mandatory common set of reporting standards based on a taxonomy for non-financial reporting would enhance the comparability, reliability and relevance of the matters covered by the NFRD.
EFRAG will mobilise a balanced and broad task force, taking into account a wide range of stakeholders and expertise, to prepare technical advice. The recommendations must build on existing standards and frameworks, and will be developed in close association with existing standard setting organisations.
Here at XBRL International we strongly support EFRAG’s work. Developing consistent standards and a single XBRL taxonomy is the best way to ensure non-financial disclosures are digital, accurate and connected to financial reporting.
Read the recommendation letter to EFRAG here.