2.3

Such a guide should provide a highly simplified explanation of the following beneficiary bodies: 2.3.1 The IFRS Foundation, which has replaced the IASCF and constitutes the global-level body that, along with the IFRS Interpretations Committee (IFRIC), establishes the accounting standards to be used by companies listed in the EU in drawing up their financial reports. These standards have been incorporated into EU law. Under the authority of the IFRS Foundation are the technical bodies – the International Accounting Standards Board (IASB) and IFRIC. Governance is provided for by a set of bodies on whose functions it is difficult to comment: in addition to the Board, we have a Monitoring Board, a Standards Advisory Committee and a Due Process Oversight Committee. 2.3.1.1 The Commission considers the IFRS Foundation to play a key role as the global-level standard-setter, and recommends continuing the support previously given to the IASCF through a stable co-financing scheme. Several Member States are already involved in the plan, with the EU, for its part, funding 17 % of expenditure in 2011. 2.3.2 EFRAG is the Commission's technical advisor on financial reporting matters. It is a private organisation, established in 2001, the governance of which was originally determined in proportion to the extent of the financial contribution of the various participants, including the Commission. In 2008, EFRAG's structure was overhauled in order to more closely mirror the public policy role that it had by then assumed, as a platform for the voice of Europe on accounting matters. While representation and voting rights are still tied to its governing bodies – the General Assembly and the Supervisory Board – enhanced governance is now delivered by a Planning and Resource Committee (PRC), and especially by a strengthened 17-member Supervisory Board, representing the various stakeholders: preparers and users of financial statements and financial institutions, as well as four public policy experts, designated by the Commission. 2.3.2.1 The Commission believes that EFRAG needs robust, long-term funding to maintain its credibility and independence; several large Member States directly contribute to its funding. The Commission co-finances EFRAG on behalf of the smaller Member States. 2.3.3 The PIOB is a Spanish foundation established in Madrid. Despite its private status, this is a body of substantial authority and weight, which ensures that due process, oversight and transparency are respected in international standards for auditors, laid down by the International Federation of Accountants (IFAC), which is the private body representing accountants and auditors worldwide. Its key partners are the Monitoring Group (MG) and IFAC itself; the MG represents international regulators and institutions at the highest level (1). The governance of the PIOB is carried out by 10 members, two of which are nominated by the Commission. 2.3.3.1 The 2009 decision assigned funding to the PIOB that amounted in 2011 to 22 % of its eligible expenses; the Commission works in close contact with this body and has even helped train its staff on EU budgetary matters. Furthermore, it seems that the structure of its network of financiers is to be revised: apart from the Commission, IFAC is the sole contributor, funding the remaining 78 % of the costs. The Commission is seeking to "diversify" its funding, so as to reinforce the PIOB's independence vis-à-vis IFAC: in addition to the funds already promised for 2013 from several international institutions, a special task force is leading a campaign to acquire further funding from donors from all over the world.