The European Financial Reporting Advisory Group (EFRAG) has announced an initiative to create a key performance indicator (KPI)-based voluntary reporting template for small and medium-sized enterprises (SMEs).
The initiative aims to improve the “accessibility and comparability” of financial information within EU SMEs.
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The proposed reporting template is expected to be accessible via the European Single Access Point (ESAP).
This move, prompted by a request from the European Commission (EC) on 29 July 2025, is designed to support SMEs and start-ups by making it easier for them to attract investors and access finance.
EFRAG is coordinating efforts with its Administrative Board, Financial Reporting Board (EFRAG FRB), and Technical Expert Group (EFRAG FR TEG) to ensure the necessary resources are directed towards this new project.
The initiative was discussed in a joint meeting of the EFRAG FRB and FR TEG on 10 September 2025, where the FRB agreed to take on the project.
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By GlobalDataThe development of the reporting template will involve assessing the interest of various stakeholders including potential preparers like SMEs and users such as investors and banks.
EFRAG will take on board their perspectives on the disclosure requirements and the content and structure of the proposed template.
EFRAG’s assessment will culminate in a report to be submitted to the EC by June 2026.
Last month, EFRAG reviewed the IASB’s Exposure Draft on Provisions, recommending refined definitions and field-testing the requirements in the proposed guidance for IAS 37.
It supported measurement clarifications but urged faster finalisation and more guidance on obligations.
Established in 2001 with the support of the EC, EFRAG operates under two main pillars.
The Financial Reporting Pillar focuses on influencing the development of International Financial Reporting Standards from a European perspective and advising the EC on endorsements of these standards.
Meanwhile, the Sustainability Reporting Pillar is responsible for developing draft European Sustainability Reporting Standards and supporting their implementation.
