World Accounting Report
Europe update: March 2022
The EC has appointed EFRAG to be the body that will set European standards for sustainability reporting. Currently, the organisation,
whose acronym defines the current scope of its responsibilities (European Financial Reporting Advisory Group), advises the
Commission on whether to adopt accounting standards developed by the IASB. Its new remit is much broader in scope as it adds
environmental and social matters to financial reporting, and instead of critiquing output from the IASB, it will have to do
all the work that goes into a standard from its initial conceptualisation to fine-tuning the drafting. Recent changes to the
organisation’s governance structure are necessary to make it fit for purpose. This article reviews the latest announcements
from EFRAG and considers whether the reforms will prove sufficient.