REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL on the activities of the IFRS Foundation, EFRAG and PIOB in 2020
Date: 2022-03-15
Institutions: Directorate-General for Financial Stability, Financial Services and Capital Markets Union, European Commission
Subjects: EU financing, EU office or agency, EU programme, activity report, audit, financial accounting, financial control, foundation, international standard, standardised accounting system

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 15.3.2022  COM(2022) 104 final  REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL on the activities of the IFRS Foundation, EFRAG and PIOB in 2020  
 
 
REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND 
THE COUNCIL 

on the activities of the IFRS Foundation, EFRAG and PIOB in 2020 

1. 

PURPOSE AND SCOPE OF THE REPORT 

Pursuant  to  Regulation  No  258/20141  of  the  European  Parliament  and  of  the  Council, 
amended by Regulation 2017/8272, the European Union has provided operating grants to three 
organisations  in  the  field  of  financial  reporting  and  auditing:  the  International  Financial 
Reporting  Standards  Foundation  (IFRS  Foundation),  the  European  Financial  Reporting 
Advisory  Group  (EFRAG),  and  the  Public  Interest  Oversight  Board  (PIOB).  These  grants 
have been indispensable for the three beneficiaries and have enabled the European Union to 
play an active role in defending the public interest in global standard-setting in this area.3 

This is the last annual report on the activities of these three bodies under this Regulation as it  
expired  end  2020.  The  funding  programme  will  be  continued  under  the  new  Single  Market 
Programme  adopted  on  28  April  2021.4  The  report  describes  the  activities  in  2020  of  these 
three  organisations  and  assesses  their  governance,  e.g.  on  the  prevention  of  conflict  of 
interest,  transparency,  diversity  of  experts,  diversity  of  funding,  public  accountability  and 
public access to documents.5 

2. 

IFRS FOUNDATION 

2.1. 

ACTIVITIES  

2.1.1.  STANDARD SETTING 

In  the  year  2020,  the  IFRS  Foundation  hosted  one  accounting  standard-setting  board,  the 
International Accounting Standards Board (IASB).6   

Following the outbreak of the COVID-19 pandemic in March 2020, the IASB has supported 
stakeholders on COVID-19-related questions about the application of International Financial 
Reporting Standards (IFRS) and has postponed less critical consultations and some effective 
dates of recently adopted amendments. 

1 OJ, L 105, 8.4.2014, p.1. 
2 OJ, L 129, 19.5.2017, p.24. 
3 Last appraisal of the Programme was included as Annex 3 to the annual 2019 Report related to the activities of the IFRS 
Foundation, EFRAG and PIOB in 2018, 29.10.2019, COM/2019/549 final. 
4 https://ec.europa.eu/competition-policy/single-market-programme-smp_en.  
5 This follows from Stoljan-report and Article 1 of Regulation 2017/827  
6 The IFRS Foundation announced in November 2021 the creation of the new International Sustainability Standards Board 
(ISSB). 

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In  June  2020,  the  IASB  issued  amendments  to  IFRS  17  Insurance  Contracts,  which  aim  to 
reduce the costs of implementation and to make it easier for companies to explain the results 
of  applying  IFRS  17.  The  amendments  postponed  the  effective  date  of  IFRS  17  from 
1 January 2021  to  1  January  2023  and  extended  the  optional  deferral  of  IFRS  9  Financial 
Instruments granted to the insurance industry accordingly. 

In  August  2020,  the  IASB  issued  phase  2  of  the  project  “IBOR  Reform  and  its  Effects  on 
Financial  Reporting”  by  publishing  amendments  to  IFRS  9  Financial  Instruments, 
International  Accounting  Standards  (IAS)  39  Financial  Instruments:  Recognition  and 
Measurement,  IFRS 7  Financial  Instruments:  Disclosures,  IFRS  4  Insurance  Contracts  and 
IFRS  16  Leases.  The  objective  was  to  prevent  that  IFRS  would  trigger  unwarranted 
accounting  consequences  upon  the  actual  replacement  of  the  benchmark  interest  rates  for 
hedge accounting. 

A  complete  overview  of  the  standard-setting  activities,  including  the  work  of  the  IFRS 
Interpretations Committee (IFRIC), is available on the IFRS Foundation's website.7  

In December 2020, the IASB began discussing feedback on its request for information on the 
second Comprehensive Review of the IFRS for SMEs Standard with a view to align it with the 
full IFRS standards without causing undue cost and effort for SMEs. 

Finally, the IFRS Foundation updated the IFRS taxonomy in order to reflect the implications 
of new standards and amendments.8 

2.1.2.  RESEARCH PROJECTS 

The 2017-2021 work plan of the IASB aims at improving and supporting existing standards, 
promoting  better  communication  and  supporting  implementation.  In  2020,  as  part  of  its 
"Better  Communication"  project,  the  IASB  continued  its  technical  discussions  following 
feedback on the published Exposure Draft General Presentation and Disclosures– proposing 
improvements to the structure and content of the Primary Financial Statements with a focus 
on the statement of financial performance. 

In  October  2020,  the  IASB  started  the  post-implementation  review  of  IFRS  9  Financial 
Instruments  with a review of the classification and measurement requirements. 

A complete overview of the research projects is available on the IFRS Foundation's website.9 

7 IFRS Foundation work plan: https://www.ifrs.org/projects/work-plan/; and 
   completed projects: https://www.ifrs.org/projects/completed-projects/. 
8 The financing provided by the European Union also supports the timely update of the IFRS taxonomy which in turn serves 
as an input to the European Single Electronic Format. 
9 https://www.ifrs.org/projects/work-plan/#research-and-standard-setting.  

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2.2. 

DUE PROCESS 

In August 2020, the IASB published a revised Due Process Handbook. An important change 
is  that  in  the  future  the  IASB  will  publish  explanatory  material  about  implementation 
questions arising from an issued standard before its application date.  

2.3. 

GOVERNANCE, TRANSPARENCY AND ACCOUNTABILITY 

2.3.1.  GOVERNANCE 

The IFRS Foundation is a non-profit organisation, under the General Corporation Law of the 
State of Delaware (United States), established to develop, promote and facilitate the use of a 
single  set  of  high-quality,  understandable,  enforceable  and  globally  recognised  accounting 
standards, and headquartered in London (United Kingdom). 

The IFRS Foundation is governed by a Board of 22 Trustees  that is collectively responsible 
for general oversight and appointments to the IASB. The Trustees designation is subject to an 
apportionment  by  geographical  origin  and  to  approval  by  the  Monitoring  Board10,  which  is 
designed to provide a link with public authorities and of which the Commission is a member. 

The  IASB  consists  of  14  members  subject  to  geographical  balance  requirements.  IASB 
members  are  nominated  for  a  five-year  term,  renewable  once.  The  IASB  is  responsible  for 
standard  setting.  In  November  2020,  the  Trustees  announced  the  appointment  of  Prof  Dr 
Andreas Barckow to serve as Chair of the IASB, from July 2021 onward. 

The  Trustees  also  appoint  the  14  members  of  the  IFRIC,  dedicated  to  interpreting  the 
application of IFRS Standards and providing guidance on financial reporting issues, and the 
members of the IFRS Advisory Council. 

2.3.2.  TRANSPARENCY RULES 

In principle, all meetings of the IASB and IFRIC are open to the public. The meeting agendas 
are published in advance and the meetings themselves can be watched on-line. In addition, the 
IASB publishes quarterly meetings with stakeholders on its website.11  

2.3.3.  REPRESENTATION OF STAKEHOLDERS 

The IFRS Foundation constitution requires the appointment of  six Trustees from Europe, as 
well for America and Asia-Oceania plus one Trustee from Africa and three Trustees from any 
area  subject  to  maintaining  an  overall  geographical  balance.  Similary,  the  criteria  for 
appointment  as  board  member  of  the  IASB  require  four  members  from  each  region,  one 
member from Africa and one member from any area.  

10 The Monitoring Board consists of public authorities responsible for setting the form and content of financial reporting. 
11 https://www.ifrs.org/groups/international-accounting-standards-board/stakeholder-engagement-register/. 

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On 31 December 2020, the IFRS Advisory Council comprised 51 organizations including the 
European Central Bank (ECB) and the European Securities and Markets Authority (ESMA). 
The Commission participates as an observer.  

2.3.4.  ACCOUNTABILITY TOWARDS THE EUROPEAN PARLIAMENT 

A full account of the development of IFRS has to be submitted to the European Parliament in 
accordance  with  Regulation  (EU)2017/827.  The  annual  exchange  of  views  between  the 
Committee on Economic and Monetary Affairs (ECON) of the European Parliament and Mr 
Hoogervorst, Chair of the IASB and Mr Liikanen, Chair of the IFRS Foundation's Trustees, 
took place on 18 February 2020. 

2.3.5.  PREVENTION OF CONFLICT OF INTERESTS 

The  Trustees  of  the  IFRS  Foundation  are  appointed  for  a  three  years  term  renewable  once, 
and must commit to act in the public interest. In principle, a Trustee and a Monitoring Board 
Member cannot be employed by the same organization.  

With  one  exception,  all  IASB  members  are  full-time.  They  have  to  sever  all  employment 
relationships  and  ties  that  might  affect  their  independence.  Neither  secondment  from  an 
employer nor rights to reintegrate with the former employer are allowed. 

2.3.6.  BREAKDOWN OF FUNDING 

In  2020,  the  IFRS  Foundation  received  a  EUR  4.9  million  grant  from  the  Commission, 
representing 23.7% of the total contributions received. The Commission continued to be the 
largest contributor. The relative share of the Commission budget and Member States funding 
went up compared to 2019 (from 38.5% to 42.8%). 

A  breakdown  of  funding  by  main  geographical  areas  and  international  accounting  networks 
shows that the EU and its Member States made 42.8% of the total contributions, Asia-Oceania 
35.2%, international accounting networks 13%, Americas 5.9%, Africa 0% and others 3%.  

The downward trend in contribution of the IFRS Foundation in recent years has continued in 
2020.  The  reported  contributions  were  down  by  9.5%  as  a  whole,  however  with  significant 
variations between contributors. The decrease in the reported contributions from international 
audit  networks  was  offset  by  a  commercial  arrangement  resulting  in  increased  licensing 
revenues.  

The IFRS Foundation reported a net surplus of GBP 3.5 million (2019: GBP 3.8 million). The 
total retained surplus as at 31 December 2020 amounted to GBP 41.5 million. 

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3. 

EFRAG 

3.1. 

ACTIVITIES 

EFRAG’s  mission  is  to  serve  the  European  public  interest  by  developing  and  promoting 
European views in the field of financial reporting and ensuring that these views are properly 
considered  in  the  IASB’s  standard-setting  process  and  in  related  international  debates. 
EFRAG  provides  advice  to  the  Commission  on  whether  new  (or  revised)  IFRS  Standards 
should  be  endorsed  by  the  EU,  based  on  the  criteria  of  the  Regulation  N°1606/2002  on  the 
application  of  international  accounting  standards  (‘IAS  Regulation’),  including  the  true  and 
fair view principle and whether they would be conducive to the European public good.  

As part of the Commission’s Action Plan on Financing Sustainable Growth (2018), EFRAG 
established  a  European  Corporate  Reporting  Lab  (“the  Lab”),  which  started    its  work  on 
climate-related reporting in 2019.  

3.1.1.  ENDORSEMENTAND RESEARCH ACTIVITIES 

In  2020,  EFRAG’s  work  on  financial  reporting  remained  largely  driven  by  the  work 
programme of the IASB, the IFRS Interpretations Committee and the IFRS Foundation. 

EFRAG  completed  its  work  on  the  consequences  of  IFRS  9  on  long-term  investment  and 
delivered  its  final  advice  to  the  Commission  about  the  accounting  treatment  of  equity 
instruments in January 2020. In addition, EFRAG continued to analyse amendments to IFRS 
17  and  the  IBOR  reform  (Phase  2)  including  their  impact  on  financial  reporting.  EFRAG 
provided several endorsement advices.12 For 2021, the main work that remains was to finalise 
the  endorsement  advice  on  the  revised  IFRS  17,  which  it  provided  on  31  March  2021. 
Outreach with stakeholders is a crucial part of the EFRAG due process.  

EFRAG  started  research  in  the  following  areas:  discounting  with  low  interest  rates;  better 
information  on  intangibles;  crypto  assets;  and  variable  and  contingent  considerations.  In 
January  2020,  EFRAG  issued  an  academic  literature  review  on  intangibles.  In  April  2020, 
EFRAG published a feedback statement on its Discussion Paper Accounting for pension plans 
with  an  asset-return  promise.  In  July  2020,  EFRAG  circulated  a  discussion  paper  on  the 
accounting  for  crypto-assets.  Through  its  Academic  Panel  and  Academic  Network,  EFRAG 
enhanced its cooperation with academics. 

3.1.2.  SUSTAINABILITY REPORTING  

The Lab appointed its first Project Task Force (PTF) on climate-related reporting assisted by a 
stakeholder  outreach  with  nearly  50  participants.  The  PTF  report  published  on  6  February 

12 https://efrag.org/Endorsement. 

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2020  highlighted  good  reporting  practices  and  recommended  two  supplements  on  general 
climate disclosures and scenario analysis reporting. 

In  May  2020,  a  second  PTF  was  appointed  on  Reporting  of  non-financial  risks  and 
opportunities and linkage to the business model. It started its discussions in September 2020 
and its report is due by Mid 2021. 

On 25 June 2020, Executive Vice-President Dombrovskis conveyed two mandates to EFRAG. 
The first mandate was a request for EFRAG to  undertake preparatory work for possible EU 
sustainability reporting standards in a revised Non-Financial Reporting Directive. Following a 
call  for  interest,  EFRAG  established  a  multi-stakeholder  Task  Force  with  35  experts,  who 
elected Mr Patrick de Cambourg, president of the French Autorité des normes comptables, as 
the  Chair.  The  Task  Force  report  included  a  roadmap  and  54  recommendations  for  the 
development of a comprehensive set of EU sustainability reporting standards. The Task Force 
considered  input  from  global  initiatives,  as  well  as  feedback  received  from  outreach  events 
organised by EFRAG across the EU with a large number of panellists and broad stakeholder 
participation. 

The  second  mandate  was  an  invitation  ad  personam  to  EFRAG  Board  President  Jean-Paul 
Gauzès, to provide recommendations on the possible need for changes to the governance and 
funding of EFRAG if it were to  become the EU sustainability reporting standard setter.  His 
report proposes reforms to EFRAG's governance and funding structure. 

On  8  March  2021,  EFRAG  published  both  reports  on  its  website.13  The  Commission’s 
proposal  for  a  Corporate  Sustainability  Reporting  Directive  (CSRD)  published  on  21  April 
202114  envisages  the  adoption  of  EU  sustainability  reporting  standards  to  be  developed  by 
EFRAG.  

3.2. 

GOVERNANCE, TRANSPARENCY AND ACCOUNTABILITY 

3.2.1.  GOVERNANCE 
Every  year,  the  EFRAG  Board  carries  out  a  performance  and  effectiveness  review15.  The 
2020  review  covered  a  mixture  of  strategic,  governance  and  operational  issues.  On  balance 
the governance structure has continued to work well and  EFRAG has gained further visibility 
and credibility.  

13 https://efrag.org/Activities/2010051123028442/Non-financial-reporting-standard. 
14  Proposal  for  a  Directive  of  the  European  Parliament  and  of  the  Council  amending  Directive  2013/34/EU,  Directive 
2004/109/EC,  Directive  2006/43/EC  and  Regulation  (EU)  No  537/2014,  as  regards  corporate  sustainability  reporting, 
COM/2021/189 final. 
15 https://efrag.org/About/AnnualReports. 

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3.2.2.  TRANSPARENCY RULES 

EFRAG has put in place a transparent public due process, which has further developed over 
time.  This  due  process  allows  all  European  constituents  to  put  forward  their  views  for 
consideration  by  EFRAG.  It  ensures  that  the  diversity  of  accounting  and  economic  models 
and  views  in  Europe  are  taken  into  account  in  determining  EFRAG’s  positions,  especially 
with regard to the endorsement of IFRS Standards. Also in the area of sustainability reporting 
EFRAG has sought the views of a wide range of stakeholders. 

As part of its due process, EFRAG publishes draft positions for consultation, undertakes field 
tests  and  other  forms  of  effect  analyses,  organises  outreach  events  (some  of  which  are 
especially aimed at users) and undertakes special surveys, publishes their results in feedback 
statements  and  then  publishes  its  final  positions.  EFRAG  contributes  to  evidence-based 
standard setting by undertaking quantitative studies  that inform  the discussion  on EFRAG’s 
comment letters and endorsement advice and which are gradually becoming a more important 
part of EFRAG’s research work. 

Meetings of the EFRAG Board, EFRAG Technical Expert Group (EFRAG TEG) and EFRAG 
Consultative Forum of Standard Setters (EFRAG CFSS) are held in public and the agendas, 
supporting agenda papers and summaries of the meetings are published on EFRAG’s website. 
Since March 2018 the meetings can also be watched on-line.  

EFRAG maintains a public Transparency Register, which covers the meetings of the EFRAG 
Board President, the EFRAG TEG Chairwoman and the EFRAG CEO. 

3.2.3.  REPRESENTATION AND ACCOUNTABILITY  

EFRAG strives for a proper geographical, professional background and gender balance in its 
Board,  Technical  Expert  Group  and  its  Working  Groups  and  Advisory  Panels  and  the 
European Lab Steering Group and its project task  forces.  There is a limit for the number of 
members of the EFRAG Board, EFRAG TEG and the European Lab Steering Group with the 
same nationality. There are also rules to balance professional background and gender.  

EFRAG Board members are nominated by the EFRAG Member Organisations according to a 
system put in place following the Maystadt recommendations. Public calls for candidates are 
issued for the EFRAG TEG, its Working Groups, Advisory Panels and of the European Lab 
Steering Group and its project task forces. A recurring concern is that relatively few women 
and persons from Central and Eastern Europe respond to these calls. 

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3.2.4.  PREVENTION OF CONFLICT OF INTERESTS 

EFRAG has a conflict of interest policy to underpin its public interest mandate. It is published 
on  EFRAG’s  website.16  EFRAG  Board  members  and  EFRAG  staff  confirm  yearly  their 
independence in a signed declaration.  

3.2.5.  CONTACTS THE EUROPEAN PARLIAMENT AND MEMBER STATES 

EFRAG  regularly  attends  meetings  of  the  Accounting  Regulatory  Committee  to  discuss 
outstanding issues, in particular concerning the endorsement of IFRS Standards. In 2020, the 
focus was mostly on IFRS 17.  

EFRAG  has  also  occassionally  contacts  with  members  of  the  European  Parliament.  In 
October 2020, the EFRAG TEG Chairwoman had an exchange of views in the scrutiny slot 
with  ECON  on  IFRS  17.  Mr  Pascal  Canfin,  Chair  of  the  Committee  on  the  Environment, 
Public Health and Food Safety in the European Parliament (ENVI) spoke at the launch of the 
European Lab publication on climate-related reporting.  

3.3. 

DIVERSIFICATION AND BUDGET 

EFRAG  is  a  publicly  and  privately  funded  organisation  working  in  the  European  public 
interest.  EFRAG  has  the  legal  from  of  an  AISBL  (Belgian  international  non-profit 
organisation).  EFRAG’s  Member  Organisations  comprise  eight  European  Stakeholder 
Organisations and nine  National  Organisations.  The Commission  funds a maximum  60% of 
EFRAG’s  eligible  costs.  In  2020,  EFRAG  requested  EUR  2.8  million  grant  from  the 
Commission.  Other cash contributions came from  European stakeholder organisations (EUR 
635,000)  and  national  stakeholder  organisations  (i.e.  France,  Germany,  UK,  Italy, 
Netherlands, Denmark, Spain, Sweden and Luxembourg) (EUR 1.6 million). 

At  the  end  of  2020,  the  UK  Financial  Reporting  Council  (FRC)  stepped  down  as  EFRAG 
member organisation following Brexit. 

EFRAG is seeking to broaden its membership base to cover ideally all EU Member States and 
welcomes  the  support  of  the  Commission,  European  Parliament  and  the  Member  States  to 
encourage other national organisations to join. In 2021, EFRAG welcomed the contributions 
from an Austrian organisation and countries of the European Economic Area (EEA). 

In  March  2021,  the  EFRAG  General  Assembly  approved  a  new  finance  and  governance 
structure  to  bring  more  transparency,  logic  and  fairness  in  EFRAG’s  financial  contribution 
system. The financing for the two chapters which provide the private funding of EFRAG (i.e. 
European  Stakeholder  Organisations  and  National  Organisations)  has  been  changed.  The 
national  organisations  chapter’s  financial  contributions  are  based  on  a  GDP  criterion.  The 

16 www.efrag.org.  

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European  stakeholder  organisations  chapter’s  financial  contributions  are  based  on  a  sector 
model  (accountancy  profession  sector,  banking  sector,  corporate  sector,  insurance  sector, 
SME/SMP  sector)  with  a  financial  contribution  of  EUR  150,000  per  sector.  There  is  an 
exemption for the user sector.  

In addition to financial contributions, EFRAG receives contributions in kind provided by the 
members of EFRAG TEG, the EFRAG Board, the Working Groups and Advisory Panels, for 
instance in the form of temporary secondments. 

4.  

PIOB 

4.1. 

ACTIVITIES 

The  PIOB  provides  independent  oversight  throughout  the  entire  process  of  global  auditing 
standard setting to help ensure that standards development is fully responsive to stakeholder 
needs, accountable and transparent. The PIOB is headquartered in Madrid where it operates as 
a Technical Committee of a regulated Spanish  not-for-profit Foundation  and is  overseen by 
the Spanish Foundations Protectorate. 

The  PIOB  conducted  its  oversight  in  2020,  adapting  to  the  pandemic  and  observing  all 
meetings of the standard setting boards (IAASB and IESBA17), almost entirely held virtually. 
In 2020, it approved the revision of three Quality Management Standards and of the Code of 
Ethics  to  promote the  role  and  mind-set  expected  of  professional  accountants.  It  also  raised 
public  interest  concerns  in  several  projects,  e.g.  on  group  audits,  audits  of  less  complex 
entities, going concern, fraud, audit evidence, technology and extended external reporting. At 
the  same  time,  the  PIOB  has  worked  on  the  implementation  of  the  Monitoring  Group 
recommendations  to  “Strengthen  the  International  Audit  and  Ethics  Standard-Setting 
System”,  published  on  14  July  2020.18  On  3  June  2021  the  PIOB  published  its  16th  Public 
Report published which gives a full overview of the PIOB’s activities. 19  

4.2. 

GOVERNANCE AND ACCOUNTABILITY  

The  Monitoring  Group,  of  which  the  Commission  is  a  member,  monitors  how  the  PIOB 
carries out the oversight of the standard setting process and appoints the ten PIOB members 
(including  the  Chair)  based  on  the  allocation  among  its  members.  In  December  2020,  the 
Commission invited the members of the Committee of European Auditing Oversight Bodies 
(CEAOB) to propose candidates to replace the two Commission nominees (Ms Aileen Pierce 
(IE)  and  Mr  Karel  Van  Hulle  (BE)),  whose  terms  were  to  expire.  This  has  led  to  the 
nomination of Ms Begona Giner (ES) and Ms Janine van Diggelen (NL) on 23 April 2021.  

17 International Auditing and Assurance Standards Board respectively International Ethics Standards Board for Accountants. 
18 https://www.iosco.org/about/monitoring_group/pdf/2020-07-MG-Paper-Strengthening-The-International-Audit-And-
Ethics-Standard-Setting-System.pdf.  
19 https://ipiob.org/16thPublicReport.pdf 

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Every  year,  each  PIOB  member  signs  a  declaration  of  absence  of  conflicts  of  interest.  No 
conflicts of interests have been reported in 2020. 

4.3. 

DIVERSIFICATION OF FUNDING 

The  funding  of  the  PIOB  is  designed  to  preserve  its  independence  in  fact  and  appearance. 
Since 2010, the European Union has been the second biggest donor. In 2020, PIOB’s revenue 
(monetary and in-kind contributions) amounted to EUR 1,804,463. The EU contribution was 
EUR 345,000 (or 19.12%), whereas the International Federation of Accountants (IFAC) still 
contributed  EUR  1,064,438  (or  58.99%),  which  is  below  the  cap  of  66.66%  permitted  by 
Article 9.5 of the Regulation). Other contributions came from the International Organization 
of Securities Commissions (IOSCO),  Bank for International Settlements (BIS), International 
Forum  of  Independent  Regulators  (IFIAR),  FRC,  the  Swiss  Federal  Audit  Oversight 
Authority, the Financial Supervisory Commission of Taiwan, while the Spanish government 
provides  the  Madrid  office  for  free  (estimated  at  EUR  189,318  in  2020).  Further 
diversification of funds remains necessary. As part of its reform, the Monitoring Group aims 
to bring the IFAC funding of the PIOB below 50%. 

5. 

CONCLUSIONS  

This is the last annual report of the Commission under Regulation No 258/2014. The funding 
programme has been indispensable for the three beneficiaries (IFRS Foundation, EFRAG and 
PIOB). The EU funding enabled them to serve the European public interest by developing and 
promoting European views in the field of financial reporting and auditing and ensuring these 
views are properly considered in the IASB and IFAC standard-setting processes. 

10